2015 May 13th

The April Hoboken Condo Sales Results

Very often, I take a new buyer out to see some high-end properties in Hoboken and they tell me they think the unit is overpriced. A few days later, I get the email from the listing agent saying “thank you for showing 123 Main Street, we have received multiple offers and will be asking for your buyers’ best and final bid by noon on Tuesday”. The “overpriced” property then sells for more than the list price. This is not just anecdotal evidence of a sellers’ market. Here are the stats that show that properties in Hoboken are selling, on average, for over asking price.  Interestingly, this is happening across the board – 1 bedroom, 2 bedroom and 3 bedroom and bigger units.

Price per square foot for a Hoboken condo is well over $600 for all size categories and has jumped to $644 overall.  The median sales price for a condo in Hoboken is now $577,000.  According to the New York Times, “the median sales price in Brooklyn hit a record $610,894 in the first quarter of this year, marking the first time the median crossed the $600,000 threshold in the borough, according to a report prepared by the appraiser Jonathan J. Miller for the brokerage firm Douglas Elliman. That is still less expensive overall than Manhattan, where the median sales price was $970,000 for the same period, but apartments in certain Manhattan neighborhoods can be had for less.”  Overall, Hoboken is still a bargain.  More and more of my clients tell me they started out looking in Brooklyn or Queens and realized they couldn’t get what they want in their budget.  They came to Hoboken and were persuaded by its neighborhood feel and proximity to Manhattan. This year’s prices are a good 6% to 7%  above last year’s.  Inventory is still way down.  The competitive nature of the Hoboken real estate is market is not going away any time soon.

 

Here are the April numbers: Here’s what the 3 month moving average looks like: moving avgimage

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  1. Dave

    What are your thoughts on how the market may look in 2-4 years?

  2. Peter Kim

    In the end, it all comes down to supply and demand. People who chicken out on making offers because homes are “overpriced” don’t understand the market. There isn’t something magical or some wild yuppie conspiracy driving up prices. In Hoboken, I’d guess that the vast majority of purchases are from people putting at least 20% down; that the skyrocketing prices aren’t directly due to cheap/easy money (though arguably the broader economy is being driven up by low interest rates). Finance, legal, tech industries in NYC are doing extremely well and salaries in those fields are skyrocketing. Prices aren’t going to flatten out or go down until there’s an economic leveling off or downturn.

    Unfortunately, there aren’t a lot of alternatives either. JC Heights and Union City are worth taking a look at for relative bargains. The Sky Club and 700 Grove seem to be cheaper due to location.

  3. Lori Turoff

    I’m optimistic. And I put my money where my mouth is and am heavily invested in real estate – both brick and mortar and through investment vehicles like REITs. But it always comes down to location, location, location.

    Oh, and having a great agent helps!

  4. Dave

    Interesting. I’m considering continuing to rent vs buying right now and I’ve just been on the fence because the all in cost comparing the two including closing costs, tax benefits, etc. if we sell and move elsewhere in 3 years (which is the plan) is pretty dead even. The place just has to appreciate about 0.5% a year to break even.

  5. JC

    3 years? Don’t buy.

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