The Weekly Wednesday Wrap-Up – Hoboken Condo Sales and Activity for the Week of May 16th, 2012
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, Weekly Wednesday Wrap Up
This Week’s Condo Sales & Activity versus last week’s:
252 active Hoboken condo units – vs. 246 last week
- 8 DABOs (Deposit Accepted By Owner i.e. under contract) vs 14 last week
- 7 Sold vs. 15 last week
- 39 New listings vs. 28 last week
- 5 Price changes vs. 26 last week
- 1 expired listing vs. 2 last week
1 Bedroom & Studio Condos
10 New listings
2 Price Changes
86 Active
2 DABOs
- 209 2nd St., 1L listed April 25 for $219K;
- 800-830 Jackson St., PH12 Listed May 1 for $350K;
3 Sold
- 423 Jefferson St., 8 listed Feb 16 for $269K; sold for $269K;
- 1125 Washington St., 4R listed Mar 19 for $345K; increased Mar 25 to $360K; sold for $345K;
- 1122 Washington St., 3 listed Aug 17 for $369K; sold for $355K;
2 Bedroom Condos
25 New listings
3 Price changes
140 Active
4 DABOs
- 1302 Park Ave., 2S listed April 23 for $409K;
- 133 Grand St., 3 listed April 26 for $485K;
- 635 6th St., 2D listed Dec 5 for $499K;
- 1100 Adams St., 205 listed Mar 3 for $539K; reduced Mar 15 to $535K reduced April 13 to $525K;
4 Sold
- 803 Willow Ave., 5N listed Feb 16 for $336K; sold for $325K;
- 531 Jefferson St., 4 listed Jan 18 for $399K; sold for $381K;
- 717 Willow Ave., 7 listed Feb 8 for $419K; sold for $406K;
- 380 Newark St., 4D listed Feb 9 for $599K; sold for $585K;
3 Bedroom & Bigger Condos
4 New listings
No Price changes
26 Active
- 213 Monroe St., 3 listed April 5 for $716K;
- 233 Washington St., 3 listed April 10 for $989K; reduced May 3 to $960K;
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The Weekly Wednesday Wrap-Up – Hoboken Condo Sales and Activity for the Week of May 9th, 2012
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, Weekly Wednesday Wrap Up
What’s up with Inventory?
Week after week, we have seen the inventory of Hoboken Condos for sale inching up and down, but never leaving the lowest levels that many long-time observers can remember. Week after week, I draw your attention to the fact that–following the rules of classic Free Market theory–this low inventory (supply) must inevitably drive up prices (demand) and, in turn, eventually lead to an increase in supply. If you’ve been studying the numbers in the weekly, monthly and quarterly reports that we produce, you have seen the discount rate falling, the days on market falling and–recently–an increase in the frequency of properties going for more than their asking price–the visible symptom of multiple offers leading to bidding wars. So, you may ask, why do we see no meaningful improvement in supply?
Certainly, there are seasonal factors at work. If sellers with children have the opportunity to choose, they will not move during the school year, so a bump up in inventory may come in June. But I see a less obvious factor at work in the market on a daily basis: the amazingly high percentage of sellers who are listing properties at prices that are lower than the price they paid. Before people are going to be tempted to sell their homes in response to an ‘improving’ market, that market must promise them–at least–the likelihood that they will recoup their costs. Until then, the only people selling will be long-time owners whose basis pre-dates the ‘bubble’, or people who are forced to sell by external forces–job re-location, divorce, etc.
The low cost of money–historically low interest rates–is great for home buyers, but does little to compensate sellers who are under-water. You may consider this a “sellers market”, but I don’t think you will see a significant increase in inventory until prices rise further. The Free Market at work.
This Week’s Condo Sales & Activity versus last week’s:
246 active Hoboken condo units – vs. 246 last week
- 14 DABOs (Deposit Accepted By Owner i.e. under contract) vs 12 last week
- 15 Sold vs. 15 last week
- 28 New listings vs. 26 last week
- 26 Price changes vs. 9 last week
- 2 expired listings vs. 3 last week
1 Bedroom & Studio Condos
14 New listings
7 Price Changes
92 Active
5 DABOs
- 232 Park Ave., 5S(9) listed April 4 for $309K; reduced April 13 to $289K;
- 1115 Willow Ave., 004 listed April 20 for $289K;
- 135 Garden St., 2 listed Mar 16 for $309K;
- 330 Monroe St., 3R listed April 11 for $315K;
- 133 Grand St., 5 listed Mar 23 for $349K; reduced April 9 to $339K;
7 Sold
- 160 2nd St., 4 listed Feb 8 for $295K; reduced Feb 13 to $260K; sold for $235K;
- 423 Jefferson St., 8 listed Feb 16 for $269K; sold for $269K;
- 101 Willow Ave., 5A listed Oct 12 for $359K; reduced Oct 21 to $358K; reduced Nov 18 to $349K; reduced Mar 20 to $339K; sold for $328K;
- 163 14th St.4N listed Feb 14 for $354K; sold for $340K;
- 309 1st St., 3C listed Jan 10 for $359K; sold for $349K;
- 1122 Washington St., 3 listed Aug 17 for $369K; sold for $355K;;
- 1300 Grand St., 512 listed Mar 27 for $439K; sold for $439K;
2 Bedroom Condos
12 New listings
17 Price changes
128 Active
7 DABOs
- 934 Willow Ave., 3 listed April 20 for $355K;
- 610 Newark St., 4B listed April 16 for $435K;
- 108 Monroe St., 3B listed June 8 for $449K;
- 812 Grand St., 214 listed Mar 27 for $539K;
- 129 Harrison St., 9 listed Mar 2 for $575K; reduced May 4 to $540K;
- 901 Madison St., 2G listed April 20 for $550K;
- 415 Adams St., 3 listed April 19 for $619K;
6 Sold
- 717 Willow Ave., 7 listed Feb 8 for $419K sold for $406K;
- 727 Jefferson St., 7 listed Jan 13 for $475K; sold for $470K;
- 824-830 Monroe St., 2E listed Nov 28 for $585K; reduced Feb 22 to $575K; sold for $570K;
- 1216 Bloomfield St., A listed Oct 3 for $679K; reduced Nov 10 to $649K; sold for $643K;
- 405 Jefferson St., 1 listed Feb 21 for $689K; reduced Mar 5 to $679K; sold for $670K;
- 1025 Maxwell Ln., 1200 listed Jan 26 for $2.9Mil; sold for $2.8Mil;
3 Bedroom & Bigger Condos
2 New listings
2 Price changes
26 Active
- 501 9th St., 202 listed April 20 for $649K;
- 1018 Hudson St., 5 listed April 27 for $759K;
- 620 Monroe St., 3 listed June 17 for $649K; reduced Sept 21 to $631K; reduced Oct 28 to $618K; sold for $600K;
- 150 14th St., 401 Listed Jan 11 for $784K; sold for $766K;
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Is That Hoboken Condo For Sale by Owner?
Categories: About Realtors, For Buyers, For Sellers
It May Look Like It Is But What If It’s Not?
This past Saturday my buyers told me they were going on Sunday to see a property at an open house which was a “For Sale By Owner”, or FSBO”. I took a look at the flyer they had picked up for it. Guess what? Even though it looked like a FSBO and was written like a FSBO it was most definitely NOT a FSBO. The flyer actually had an MLS number on it. But there was no agent name, no brokerage company identified, nothing else that would indicate that this seller was represented by a real estate agency.
I recognized the address from seeing the property hit the MLS as a new listing just a few days ago. That means that the sellers had, in fact, entered into a formal contract with the listing agency to pay them a 5% commission in exchange for selling their home. Furthermore, the agency, by putting the property on the MLS, had contractually agreed to give half of that 5% commission to any agent who brings a buyer for this home.
I decided to accompany my buyers to the open house. Outside the property was a very home-made looking “For Sale” sign with no identification of the brokerage or listing agent. It looked very much like what you’d see on a FSBO. Inside were the husband and wife with a bunch of cookies on the table and more of the same flyer. They were showing people around and answering questions. No listing agent in sight.
So why does all this matter?
- If you are a buyer and think you are buying directly from the seller with no agent involved, wouldn’t you consider that in the price you offer and what the sellers should be willing to accept? After all, the seller, you would think, if selling without an agent is not handing over 5% or so to a broker.
- If you are a buyer who had been working with an agent but think this is a FSBO might you not choose to go there alone? Without your agent? FSBOs are not always willing to compensate agents who bring the buyer. Some will specifically state on their materials “3% paid to buyer’s agents” but not all. Usually the seller is hoping to save the 2.5% on the sell side AND the 2.5% on the buy side (or whatever the percentage may be). So even buyers who look at MLS-listed properties with an agent often go to the FSBO on their own, especially if it looks like their buyer’s agent isn’t going to be paid anything
The biggest mystery to me though, is why would a seller ever be willing to pay 5 or 6% to list a property with a purportedly “full-service” brokerage and then prepare his or her own marketing materials, signage, and host their own open house? That is one very un-savvy seller. If you’re paying tens of thousands of dollars for service from a brokerage you should get it! These sellers must be clueless.
This all seems to me to be very deceptive and possibly unethical. Is it an attempt by the broker to trick buyers into thinking there is no agent involved and the sale is being handled directly by the owners? Will this broker, who gets the sellers to do all the work, swoop in and pocket both sides of the commission?
Does this sound kosher to you?
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