Toll Brothers..Trouble in Hoboken too?

A realtor friend of mine in the city sent me an article from Bloomburg News stating that Toll Brothers have significantly slashed their prices at Northside Piers, Toll’s highrise tower in Williamsburg.  Could this be a sign for Toll Bro’s Hoboken real estate projects?  Toll is now selling two-bedrooms units at Northside starting at $690,000, down 21 percent from $869,000 at the beginning of last week. Three- bedrooms now start at $860,000, down 20 percent from $1.075 million. Penthouses now cost $950,000, down $1.5 million. David Von Spreckelson, senior VP of Toll said that they wanted to reduce prices to what “made sense” to buyers.

Toll Brothers, the developers to some of the most high end projects in Hoboken such as the Tea Building and Maxwell Place have not mentioned if they will do the same price slash in Hoboken. It is nearly impossible to think that construction on the remaining building in Maxwell will start. Hoboken real estate has come down quite a bit and and despite holding up pretty well considering the circumstances, nobody in the right frame of mind will guarantee you that we are at the bottom.

There are many reasons to believe, however, that real estate in Hoboken could be NEAR the bottom. With the new income tax incentive to all owner occupant buyers in addition to the loosening credit markets, we think there will be a stagnation in prices for a while as inventory is absorbed while the economy tries to recover. I have heard many potential buyers ask if now is the time to buy, or should they wait. My answer is simple. Whether you are buying real estate as an investment or to live in it, it should be considered a long term investment. If the market declines a bit further, we will bet that within 5 years credit markets will recover, our economy will be out of the recession and real estate prices will continue its historic trend of price appreciation.

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