Hoboken Condo Report – February 2012
On March 1, 2010, there were 505 condos for sale in Hoboken. On March 1, 2011, there were 376 condos for sale in Hoboken. On March 1, 2012, there are 227 condos for sale in Hoboken. These stats show a 40% reduction of inventory since 12 months ago, and 55% less inventory from 24 months ago. Guess what? This is the most significant difference in available inventory per town in the entire tri-state.
Hoboken, NJ has shown immense resiliency in the market and has gained steam month over month for almost 2 consecutive years. The shape of the trends remain the same in terms of sales volume, DABO’s, etc, however the line of the trend is well above the 2010-2011 trend. This indicates a significant improvement in consumer confidence and a cautiously optimistic thought that the housing market is on the rebound.
Blame it on the warm weather if you want, but buyers are out in droves in Hoboken. There were 67 condos put under contract in Hoboken during February. That is a month over month increase of almost 33%. Year over year, February 2012 improved from February 2011 by 21% a huge sign that market is clearly rebounding where buyers are taking advantage of what appears to be a balanced market in Hoboken. In other words, the disconnection that used to exist between buyers and sellers is dissipating quickly and noticeably.
Of my team’s 9 Hoboken listings, 8 of them are under contract where we experienced multiple offers on all of them. We haven’t seen this type of activity in a couple of years.
|February 2012||MoM Change||YoY Change|
|Avg. Sales Price||$493,650||+0.5%||+8.6%|
|Avg. Price / SF||$425||-6.6%||-2.4%|
|Absorption Rate (months)||4.45||-8%||-55%|
With the exception of the Price Per Square foot in this chart above, every statistic has shown incredible YoY improvements. The YoY Price Per Square Foot is a little skewed because of only 24 sales in February 2011 where one unit on Willow sold for an abnormally high amount. Regardless, it is part of the statistic process.
Inventory is down 40% since a year ago and the rate of absorption has improved by a 6 month scale. The rate of absorption is calculated by taking the amount of Available Inventory (227) and dividing it by the number of sales during the previous month (51), making the current Hoboken condo rate of absorption 4.45 months. The rate of absorption is the amount of time in months it would take Hoboken to sell out of its current inventory at its current rate of sales, assuming no other units came on the market. A year ago today, the rate of absorption was over 10 months. Builders typically use a 6 month criteria. If there is less then 6 months of inventory, new construction is favorable. Any more then 6 months is considered higher risk.
DABO is short for saying “Deposit Accepted By Owner – Pending Deal”. DABO’s are sky high compared to last month and last year. Warm weather has helped but consumer confidence is the driver. It is expected in the job report later this week that unemployment will drop to 8.5%. Fence sitters of the past are now finding themselves in bidding wars for attractive units in Hoboken. As I mentioned earlier, we are experiencing multiple offer situations on most of our listings and as per our office meeting the other day, most agents are experiencing the same. If you use DABO’s instead of Sales when calculating Absorption Rates which some pro’s do, the absorption rate in Hoboken would be 3.38 months.
Folks, now is the time to buy in Hoboken. Rental rates are not going down. We saw an 11% YoY increase in rentals recently. Prices are going up and multiple offer situations are tedious. Let me earn your business by showing you what is going on in the market. We are light years ahead of most brokers in town with our innovative analysis of the market. We don’t update quarterly or annually. We update Hoboken every month and have our finger on the pulse. Come on in and talk to us about recent trends and if it is favorable for you to buy or sell. Call Scott @ 877-688-7582 or visit us at 1 Newark St in Hoboken. LET’S GO YANKEES!!!!
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