2020 May 6th

The April Hoboken Condo Sales Results

Prices are still holding their own, in Hoboken. Activity is down as people choose to hold off on buying or selling unless there is a reason for them to have to move. That makes sense. At the same time, a lack of inventory relative to past years has likely causes prices to remain strong. Most properties, at least those which are not what I call “bruised apples” are selling at or over asking. We are not seeing price appreciation like past years but the market remains relatively strong and stable. Good news for Hoboken.

Mortgage rates remain extremely low. If any of you have been following the recent chaos in the bond market, you will know that these low rates are not going away any time soon. That brings a buyer’s monthly payment down to a more reasonable level compared to the days of 4% to 5% interest on a 30-year fixed rate mortgage.

The Wall Street Journal reported today that median home prices rose 8% year-over-year in March. Housing supply is contracting – sellers are not listing their homes now if they don’t need to sell. No one wants a bunch of strangers traipsing through their home right now. At the same time, buyers are waiting rather than go out looking for homes during a pandemic and uncertain financial times. Redfin claims that its measure of homebuying demand, which tracks buyer inquiries, was down 15% in the week ending April 26, compared to before the coronavirus was in the news. The article says that Fannie Mae expects the median existing-home price to tick up slightly from last year while Zillow predicts a drop of 2 to 3% by the end of 2020 with a recovery in 2021. Keep in mind that this is speaking of home sales at the national level. Hoboken has always been unique in that regard.

A big question that has yet to be answered is what will happen wiht mortgage-forbearance policies and if they end, will that lead to a wave of distressed sales and will even that result in driving prices down?

Here are the numbers:

Rolling average chart – be sure to scroll all the way to the right to April 2020:

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