There have been stories in the press about the Manhattan inventory shortage driving up prices. Similar things are going on here in Hoboken, as well. Let’s extrapolate from that article and see how Hoboken plays out:
For the 1st quarter of 2013, average sales price for a Hoboken condo was $550k, a 10% increase year-over-year. Meanwhile median sales price jumped to $535k – an ALL TIME HIGH for Hoboken condos. This figure represents a more than 18% year-over-year increase.
Looking at activity – there were 137 deals closed in the 1st quarter of 2013. Exactly the same number as in the 1st quarter of 2012.
“This is what happens when you take both hands and choke off supply by the throat,” said Jonathan Miller, president of Miller Samuel and the author of the Elliman report. He was speaking about Manhattan but Hoboken has a similar chokehold driving up prices. Hoboken inventory fell to an all time low of 107 units for Q1 of 2013 from 345 a year ago. That’s more than a 200% drop!
I was amused when a buyer recently told me that they weren’t going to get involved in “bidding wars”. (We like to call them ‘multiple offer situation’). I thought to myself, then you are not likely to purchase an apartment in Hoboken any time soon.
If you are interested, here is the link to the raw data – quarterly sales results going back to 2000. Please note that the numbers are all pulled from the MLS but – the numbers change every time I go back and double check them. Inaccurate reporting by agents, fudging dates, duplication, lack enforcement of reporting rules. They are pretty good – I’d say 95+% accurate – but not perfect. They are, however, the only source we’ve got and I do the best I can with that.