Q1 Hoboken Condo Report – March Stats – Seller’s Market??
Looking to buy a Hoboken condo? Are you scouring the market for good deals? Well you’re not alone. The Hoboken condo market is one of the most active condo markets in the country right now where most units close to a good deal are receiving multiple offers. A buyer I was with this weekend loved a unit on Garden St. Looking at the price and 3 day on the market, I knew this wouldn’t last. I called to set up a showing appointment and we were told there are 9 offers on it.. NINE!!! Eight of those offers were for ABOVE the listed price. Yes, that is turning into the norm in Hoboken.
The first quarter of 2012 showed improvements in a few categories when comparing YOY details. What is most glaring is the current level of inventory on the market. The average number of condos on the market during Q1 2011 was 379 per month. During Q1 2012, the average amount of units for sale was 228, a 40% reduction in condos for sale. Additionally, there were more sales in 2012 YTD then there were in 2011′s first quarter. This has significantly improved the Absorption Rate in Hoboken to staggeringly favorable numbers for sellers.
March 2012 had 37 sales, down from 51 in February. We predicted March sales to be around 35. We took into consideration the pending sales since December. The last February through March showed a high increase in pending sales and we expect April to exceed 50 sales and May to exceed 60 sales. By summer, don’t be surprised to see close to 90 sales during the peak months. I predict a 15% improvent in YOY inventory sales. As a result, average sales price and cost per square foot will increase. This is what is creating the buying frenzy right now. Buyers understand that if they don’t act quick, they will miss the bottom of the market, and the recovery is happening now. If you think Short Sale listings offer a significant discount, not really. We have most of Hoboken’s short sale listings and I can say with confidence that banks are not offering a much better deal on them since the market is picking up steam.
|Q1 2011||Q1 2012|
|Available Inventory Avg||379||228|
|Avg. Sales Price||$474,821||$478,605|
|Absorption Rate (months)||9.7||5.7|
|Price Per Square Foot||$439||$439|
|March 2011||March 2012|
|Avg. Sales Price||$450,272||$461,398|
|Absorption Rate (months)||8.0||6.4|
|Price Per Square Foot||$434||$440|
Noticeably, the available inventory is way down since last year. My prediction is that active inventory will slightly increase throughout the spring and summer with closed sales increasing as well. Rate of absorption should remain at about 5.5 months for Hoboken which is considered as a healthy market. Currently, it is a seller’s market, but sales will have to improve throughout the next few months to keep up with upcoming inventory levels.
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