The February Numbers – Hoboken Condo Sales & Prices Continue to Lag
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, monthly results
The February results are in and there’s not much good news. Activity is still very low, new listings continue to accumulate, days on the market increased and prices are down. No surprise there. The only positive note is that units that have gone under contract are up. Here is the data:
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Why You Might Urge Your Condo Association to get FHA Approval for your Building
Categories: Finance, For Sellers, Hoboken Condos
Could This Help Get Your Home Sold?
We had a heated discussion on this board about the pros and cons of FHA financing with comment0rs on both sides of the argument making some good points. Putting aside for a moment the merits of whether there should be FHA financing, let’s take a look at what FHA lending accomplishes. Many young, first time home-buyers simply don’t have 20% of the purchase price saved to enable them to buy a home. It is possible under certain circumstances to get a conventional loan with 15% or maybe even 10% down but it’s very tough and you have to have stellar credit and pay PMI (purchase money insurance). The FHA program lets qualified buyers put down as little at 3.5% and to include closing costs in the loan. That opens up a whole new universe of buyers.
What Would A Condo Association Have to Do?
To get FHA approval for a building certain conditions must be met and it varies for new construction and pre-existing condos. Here, I’m talking about a building that’s been around for a while and is fully occupied, not brand new construction. For example, (and this is just an overview – for specifics, read this) to the at least 50% of the units must be owner occupied; there can’t be more than a 25% of commercial floor space and it has to be “of a nature that’s homogenous with residential use”; one owner cannot own more than 10% of the condos. There must be adequate insurance on the building, including flood insurance if it’s in a flood zone. Basically, the risk of default has to be spread as thinly as possible. Nonetheless, many condos in Hoboken already may or easily could meet the requirements. Obtaining FHA certification may make the units in those buildings more valuable. Why, you might wonder? Because now they are more marketable. Many potential buyers who might not have been able to purchase your unit now can with FHA approval.
How Do you Do It and What Does it Cost?
What you would need to do if you are interested is to have your Condo Board contact a good mortgage lender. They would help you through the approval process. According to one lender with whom I do a lot of business, it should cost about $3,000 and take about 6 months or less. Now that might seem expensive but the cost could be spread over all the unit owners since they will all benefit from the approval or, if your association has sufficient funds in reserve, could be paid for with that. Something to seriously consider in today’s Hoboken real estate market if you wish to increase your ability to sell your condo.
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The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of February 16th
Categories: Hoboken Condos, Weekly Wednesday Wrap Up
Hoboken Condos Sales & Activity – Week of February 16th.
Hello 500+ Hoboken condos for sale. No big surprise. What did surprise me is how many of the sold units (and dabo’s) were sold without price reductions – except, of course, the Garden St. Lofts. Look at some of the other 2 and 3 bedrooms that sold. They were fairly expensive units and they all went pretty quickly and not much below the list price. Maybe it’s a flight to quality? Well, Mardi Gras has come and gone and now is supposed to be the season to repent and renew. Maybe the housing market will also start to revive during this period and we will see a happy Spring.
Here are this weeks numbers vs. a weeks ago numbers:
- 514 active Hoboken condo units today – vs. 495 last week.
- 25 price reductions, vs. 30
- 9 dabo (under contract) vs. 11
- 17 sold vs. 16
- 34 new listings vs. 41
- 1 expired listing vs. 4
Studio & 1 Bedroom Hoboken Condos:
14 new listings.
209 total active – $376,238 average asking price. Average 79 DOM.
2 dabos. Average 20 DOM
- 84 Adams listed at $449k on Jan 4; reduced to $439k on Feb 2.
5 sold for an average sales price of $394,000. Average 164 DOM
- 114 Willow listed at $399k on Aug 18; reduced to $385k on Oct 5; sold for $360k
- 1425 Garden (Garden St. Lofts) listed at $774k on Mar 12 ‘ 08; reduced to $695k on Jul 2 ‘08; $625k on Apr 24 ‘09; sold for $570k. Over a 25% price reduction to get this puppy sold!
12 price reductions.
Two Bedroom Hoboken Condos:
19 new listings
250 total listings. Average list price $568,134. Average 98 DOM.
6 dabo’d. Average 169 DOM.
- 123 Jackson listed at $679k on Apr 22; reduced to $565k on Nov 19.
7 sold. Average price $545,557. Average 124 DOM.
- 700 1st Street listed for $519.9k; sold for $525k (short sale – must have had multiple offers)
- 803 Willow listed at $565k on Sep 16; reduced to $540.9k on Oct 27; $535k on Nov 16; sold for $500k.
- 1425 Garden listed for $1.655m on Mar 12 ‘08; reduced to 1.549m on Nov 25 ‘08; $1.495m on Mar 19 ‘09; $1.334m on Apr 24; 1.299m on Jun 5; sold for 1.225m. Wow – it took a 25% reduction in sales price and almost two years to sell this Garden Street Loft! Even though it is the ‘penthouse’ it still faces the multi-level Toll Bros. parking lot.
11 price reductions.
Three Bedroom and Larger Hoboken Condos:
1 new listings
53 active listings. Average price $957,945. Average 132 DOM.
1 dabo’d. Average 122 DOM.
4 sold. Average price $600,529. Average 120 DOM.
2 price reductions.
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