Blog, Gold Coast

Hoboken Real Estate Update

As many of you know, Hoboken real estate inventory consists primarily of restored/renovated or waiting to be renovated brownstones plus an increasing number of recently built or renovated luxury condominium (condo) buildings.

The Hoboken real estate market enjoyed significant price increases over the last 10 years. The price increase for several years was in double digits. While 2007 reflected a slow down, the average and median prices still have held their own in 2008.

While the ongoing housing crisis may be crippling markets nationwide, the one place that has so far been less affected by the downturn is in Manhattan and close in neighboring New Jersey.

A recent report entitled NEW JERSEY DEFIES NATIONAL HOUSING TRENDS indicated that the sales volume of existing single-family homes, condominiums and co-ops so far in 2008 increased 4 percent State-wide from the same period in 2007.

The NY TIMES featured Hoboken in its Sunday Real Estate Feature recently entitled: “Hoboken Weathers The Market”. According to the NY TIMEs, “HOBOKEN was often held up as the prime example of the booming real estate market, and now it appears that the city is showing that it can hold its own in a down market, too.
Average sales prices are still increasing for downtown condominiums in Hoboken, although most asking prices are open to negotiation these days…”

The Web service Streeteasy.com also reported that waterfront properties continued to command premium prices in the 2008 about 30 to 35 percent above those on Hoboken’s west side, a former industrial area that was nearly unimaginable as a neighborhood only five or six years ago.

While development on the west side is continuing it is now moving at a much slower pace but still fueled by interest from both buyers and renters.

At this time of year, the housing market has come off the relatively inactive Fourth Quarter homebuying season and traditionally starts to heat up in the First Quarter of the year through the early Summer.

While significantly less inventory came on the market in 2008, the average list price level for resales has remained basically what it was in 2007.

Even though things are still slowing across the country, Hoboken home sellers still hope for some price gains when they sell their properties. This is primarily because of the higher market price levels in Manhattan.

The new condo construction in Hoboken has been accompanied by an overall slowdown in new construction list price appreciation but not the “significant” list price reduction most new home buyers had hoped for.

To recap, in 2008, average (and median) condo prices in Hoboken did not change from 2007. The same is true even if one looks at the last six months of 2008.

What is particularly significant about this is that there was 22% less inventory on the market in 2008 versus 2007. Which means, buyers can still expect to experience competition for the better properties in Hoboken.

While Hoboken and the NY Metro area has lagged the national slowdown; we are now seeing developers bring new construction and condo conversions to the market with good incentives to both Buyers and especially to their Realtors. In reality, the incentives are being offer in lieu of reducing the listed sales prices. Given its ideal location directly across from Manhattan, Hoboken continues to benefit from the higher price levels in Manhattan.

The largest addition to the housing inventory in Hoboken recently have been the new construction released for sale at Maxwell Place, 700 Grove, Harborside Lofts at the Hudson Tea (and Hudson Tea itself), and any number of new or renovated buildings spread across the western side of Hoboken clustering near the 2nd and 9th Street Light Rail Stations.

Written by: Pam Bell

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