2012 Sep 19th

The Weekly Wednesday Wrap-Up – Hoboken Residential Sales and Activity for the Week of September 19th, 2012

The Inventory Dilemma

It was not so long ago that I was pointing out that the inventory of Condos for sale in Hoboken was nearing 200 units–a low-water mark in all my years in this market.  Today, it would take a major influx of new properties for us to get back UP to 200 active listings–we are at 159 today.   Any regular consumer of my writing knows that I believe in the Free Market–when supply diminishes and demand increases (or remains steady) prices must increase.  When prices increase enough, suppliers will be motivated to make more product available.   Well–we have seen supply diminish.  We have seen prices increase–look how many properties sold this week at or above their asking price.  Properties that don’t secure multiple bids within a week of being put up for sale are generally ‘damaged goods’ in some way–whether it be a problem with the unit, the building, the location or some other important factor.    Some people predicted that summer would bring a glut of new listings, but it did not come to pass.   Is my faith in the Free Market shaken?  It is not.  We must look below the surface of the current transactions to find the answer.

Of 14 properties sold this week,  five have no sales history–either they are new developments or were sold by long-time owners.  Of the remaining nine sales, six–67%–were sold for less than the current owners paid for them.  They may have sold quickly, they may have sold for above their asking price, but they represent a net loss to the seller.   Until prices get back to their 2008 levels, the market pressure to “create” more inventory is just not there.   Only those who MUST sell will put their homes on the market.   For now, we are in a strange version of a “sellers market”.  Folks with top-quality properties who bought before–or after–the “bubble” can expect to sell their homes quickly and for a good price.  Buyers have to be prepared to act quickly and decisively when they see those top-quality listings, because I don’t see a solution to the Inventory Dilemma on the horizon.

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This Week’s Residential Property Sales & Activity versus last week’s:

172 active Hoboken listings:

  • 159 Condo & Co-op listings, compared to 171 last week
  • 13 Single- and multi-family listings, compared to 12 last week
  • 8 DABOs (Deposit Accepted By Owner i.e. under contract) vs 9 last week
  • 14 Sold vs. 28 last week
  • 11 New listings vs. 22 last week
  • 6 Price changes vs. 12 last week
  • 2 Expired listings vs. 1 last week

1 Bedroom & Studio Properties

5 New listings

1 Price change

59 Active listings

2 DABOs

 

  • 461 4th St., 1E listed May 28 for $279K; reduced July 5 to $275K; reduced July 28 to $269K;
  • 118 Jefferson St., 1L listed July 2 for $275K;

3 Sold

  • 118 Jefferson St., 2L listed Nov 17 for $245K; sold for $240K;
  • 133 Madison St., 2L listed Jun 14 for $322K; sold for $310K;
  • 904 Jefferson St., 4A listed Jun 7 for $445K;  sold for $451K;

2 Bedroom Properties

5 New listings

4 Price changes

79 Active listings

4 DABOs

  • 536 Grand St., 205 listed July 13 for $530K; reduced Aug 17 to $518K;
  • 700 1st St., 15H listed Aug 24 for $575K;
  • 828 Hudson St., listed Sept 12 for $599K;
  • 1500 Hudson St., 9V listed Aug 23 for $750K;

10 Sold

  • 209 Adams St., 5 listed April 20 for $379K; reduced May 3 to $365K; reduced Jun 5 to $350K; sold for $345K;
  • 931 Willow Ave., 1B listed May 21 for $399K; reduced Jun 20 to $389K; sold for $388K;
  • 717-719 Madison St., 4N listed July 5 for $500K; sold for $510K;
  • 119 Madison St., 5E listed May 8 for $525K; sold for $510K;
  • 1200 Grand St., 626 listed May 13 for $529K; sold for $535K;
  • 659 1st St., 407 listed Mar 19 for $560K; sold for $551K;
  • 150 14th St., 305 listed Aug 2 for $560K; sold for $560K;
  • 800 Jackson St., 903 listed May 30 for $575K; sold for $575K;
  • 321 Adams St., 2 listed May 21 for $625K; sold for $608K;
  • 1025 Maxwell Ln., 902 listed July 13 for $1.48Mil.; sold for $1.43Mil;

3 Bedroom & Bigger Properties

1 New listing

1 Price changes

26 Active listings

8 Multi-Family Active listings

2 DABOs
  • 88-90 Clinton St., 4 listed Sept 5 for $579K;
  • 121 Monroe St., listed Aug 31 for $750K;
1 sold
  • 926 Castle Point Terr., listed April 17 for $2.75Mil.; sold for $2.50 Mil.;
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  1. Gilby

    Very interesting article. It sure appears for, right now, that an awful lot of people bought IN the bubble, so many people that don’t have to sell, are not interested in entering the market. With the economy in shambles, I don’t know see the prices creeping up as fast as potential sellers need them to; however, I suspect that the reval (that is happening, isn’t it?) will create a decent pipeline of new “old” properties when those owners that bought in a different ‘time’ can no longer afford the adjusted tax…even if there is no mortgage. I’m told that 1988 saw a huge jump in the number of properties put up for sale. I can’t verify that is true, but it sounds like it was plausible.

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