Categories: Hoboken Condos
I was in Toronto and Montreal for a vacation over Labor Day. There is so much construction going on in both cities, it is mind boggling.
The Toronto City Council approved 7,000 more residential condo units to the 70,000 already in the pipeline last week. Toronto is said to have the highest rate of development of anywhere in the world. It certainly felt like we were walking through a never-ending construction zone but at least the buildings they are building are architecturally stunning. Two bedroom units in new high-rise buildings in the downtown core start at about $590k on a very low floor. Prices rise into the millions rapidly and the views from the upper floors are incredible. If only the new high-rises planned for Hoboken were to look like these.
Hoboken condo sales slowed down a bit in August, as is to be expected in the height of the summer season. Nonetheless, properties continue to sell over asking, on average. 46 out of 91 properties sold at or over asking. Only three of those were subject to a price reduction from the original list price. Look at the breakdown: Nine units were 1-brs; thirty two were 2-brs; and five were 3-brs or bigger. On average buyers paid 2% over asking but some paid as high as 6%.
Look at the bedroom size break down. We are back to the days when 1-brs sell for over 400k, 2-brs for over 600k and 3-brs for over 800k. Price per square foot is over $600 again. Days on market continues to drop. The new “normal” is for the good properties to have offers on the first weekend and “final and best” to follow.
Prices may be down a bit compared to a year ago but inventory is also way down. Number active on the first of the month is down by 34% and new listings down by 17%. Under these circumstances, prices have strong support.
Here are the August numbers:
Look at the 2 bedroom average sales price – it has reached over $700,000 for the first time ever. The number of active units on the market is way down from a year ago – a 42% decline. Similarly, the absorption rate, or how long it would take to sell current inventory at today’s pace of sales, is also down. That right there is the story. High demand, low supply, rising prices.