Hoboken Condo Report – October 2012
October was a strange month for Hoboken real estate. What turned into be the strongest October in the last 3 years, Superstorm Sandy had to mess things up on Halloween. The question now remains, what will November sales volume look like? Obviously, the storm is going to affect sales for November. Mortgage lenders are going to be reinspecting buildings to make sure that things are functional first, so due to the amount of pending sales, naturally the mortgage lenders will be backed up. Expect this to dwindle into the first quarter of 2013. Do not expect sales volume to dip because of this and it would be a very bad guess to assume that prices will drop. They won’t. Although catastrophic, this is a setback, not a fallback.
Tightening the market further is the constant decline in month to month inventory. This very time last year I had a discussion with someone that estimated inventory to double by June 2012. Instead of increasing by 100%, inventory has fallen by 64%. That’s a big swing to his guesstimate. Prices have continued to rise and so have rental rates. Watch out for a boom in Jersey City Heights….happening as we speak and this is a direct result in pricepoints.
Has anyone out there bought a 3 bedroom apartment in Hoboken in early 2011? If so, you are up about 17% on average. Three bedroom units continue to be HOT due to family relocation to urban living with a necessity for more bedrooms. Problem is the stock for 3 bedroom units is very slim, only 8% of the total inventory out there.
If you bought a 2 bedroom apartment during this same time, you are up about 16% on average, and for a Studio or 1 Bedroom you are up about 13%. The market is drastically changing and more buyers are coming out in droves, taking advantage of the low interest rates. 30 Year fixed today at 3.5%? I mean, come on…
Here is a market snapshot as to what is going on. We are also including 12 month percentage change.
|October 2012||October 2011||% Change|
|Avg. Sales Price||$532,434||$478,711||10%|
Clearly, things are moving in the right direction for Hoboken Condos. Bidding wars are seen on nearly every property. When you are out with your agent shopping for condos in Hoboken, be sure to have a Proof of Funds or Preapproval Letter from your lender that you should submit with your offer. Without this, sellers won’t even consider your offer.
If you or anyone you know are looking to buy or sell a condo in Hoboken, NJ, please call me at (201) 589-1854 and ask for Scott, founder of NewJerseyRealEstateGuys.com. Or you can simply e-mail me HERE. I look forward to hearing from you!
Popularity: 1% [?]