2016 Feb 8th

The January Hoboken Condo Sales Analysis

The January Hoboken Condo sales results are in.  Prices are down a tiny bit from last month but still way higher than a year ago. It is my belief that real estate is an asset class where trends are set longer-term than month-to-month. Looking at year-over-year figures tells us that buying a condo in Hoboken was a great investment for the past few years. Almost a 34% increase in two years, overall. Find a bank or stock that shows those kind of returns! In the short term, the figures (meaning sales) are influenced by the weather, year-end tax considerations, what the particular mix of inventory is at any given point in time, the mortgage market and the news.

Speaking of mortgages, did you happen to see the Super Bowl Sunday commercial for Rocket Mortgage?  Their tag line is “Push Button, Get Mortgage” (if only it were that simple) but the message was interesting.  It’s a snowball effect to get a mortgage, buy a home, then buy all the stuff you need for the home, which will create jobs, spread the wealth, grow the economy and the basically save the world, American-style. Powerful idea (if only it were that simple).

Here are the January numbers. Now, let’s all go out and buy a Hoboken condo so we can start helping to save the planet!

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  1. Craig

    Buying in Hoboken is a spectacular investment as long as you time it right (or are patient and wait it out if you buy right before a downturn). We bought in 2010, sold in 2015 and had a 40% return on our investment in just 5 years. You’d be hard-pressed to beat that return with any other type of investment. Lori and Howard were our listing agents by the way. Do retain them whether you’re buying or selling if you know what’s good for you.

  2. JC

    Craig…was probably more like 80%-100% ROI since I am assuming you put 20% down and didn’t pay with all cash. Anyway, these are some good years we are having, but we also had some good years that ended pretty ugly in 2007. I’d prefer slow and steady to crazy swings in the RE market. Speaking of crazy swings…I’m curious how San Francisco real estate will end up after these huge last 6 years….now that Silicon Valley is deflating.

  3. JT

    Owning in Hoboken has been the best financial decision in my life just like Craig! I also purchased in 2010 for 389K, my condo sold for 610K in 2015 and we moved to a larger condo in town. I put down 95k down on that first condo which means >100% ROI (i.e. after closing cost and all I walked away with 191k, some of which we used for new down payment).

    Even at todays higher prices I still have many of my friends making the decision to purchase in Hoboken. All of them clearly believe the long term outlook is good (Hoboken still a bargain to Manhattan/Brooklyn & Hoboken population has some of highest incomes and education in the area, etc.) If you do the math, owning is still very close to what you would be paying in rent which has also skyrocketed (owning you also possible appreciation, tax benefits, etc. As long as you know you can stick it out say >3years you will end up better off owning).

  4. Craig

    @JC – I mispoke. My 40% figure comes from the difference between what we bought at and what we sold at. So I should have said 40% appreciation in 5 years. We only put down 5% and spent a few grand for improvements, so ROI was actually much greater than 100%.

    We took the money and ran to the burbs. As much as we wanted to stay, the lifestyle, space, and public schools we desired after having a child were not available in Hoboken. And unlike JT, most of my friends had long since departed Hoboken. So after 19 years of happily living in town, I packed up the wife and kid and left.

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