Three (3) Family Home priced at $280,000

Located off of Central Ave in East Orange.  Built in 1940 and completely gut-renovated in 2008.  All Units have a washer/dryer, Central A/C, Vinyl Siding, Privacy fence in back, and security system.  Owner pays water.  Tenants pay Electric, Gas, Heat.  Building has a total of 16 rooms, 10 bedrooms, and 3 Full Bathrooms.  Underground utilities.

1. First Floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month.
2. Second Floor unit has a total of 6 rooms which includes 4 bedrooms and 1 bathroom.  This unit is rented for $1,550 per month.
3. Third floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month. 

 Let’s now look at how the numbers work as an investment property.  The pro forma will be based off of today’s (1/8/10) investment mortgage program using a 75% Loan To Value and 5.75% rate

Purchase                              $280,000

Down Payment:                     $70,000

Mortgage Principal:               $210,000

Monthly Gross Rent:            $4,150

Monthly Expenses

• Debt Service:                              $1,247
• Taxes                                         $626
• Insurance                                   $150
• Property Mgmt (if applicable)        $332 @ 8%

Total Expenses:           $2,355

Surplus Cash:               $1,795 or $2,127 if managed by owner

Net Operating Income :  $21,540

*Mortgage could be paid off in 12 years on a 30 year term.

If you are interested in setting up a showing appointment, request additional details, or would like more information on how to purchase this home, please contact us and we will assist you in the entire transaction. 

As the working week comes to an end, and while you are pondering your thoughts on how much rum and egg nog you could possibly drink this weekend, I want to leave you with some real estate thoughts that stuck out to us during one of our visits.  If you are looking for your primary home or an investment, this Kearny Two Family Home for sale should be right up your alley..

It is a 2 family home located in the Arlington section of  Kearny, NJ.  For the price and current market inventory it is one of the largest in its group and also one of the nicest in terms of the overall condition. (The thumbnail picture is the actual home). 

The home is located within walking distance to bus stops and is less than 100 meters from Roosevelt School.  There are wood floors, gas forced heat, and Central A/C.  There are 2 separate gas and electric meters and as a bonus, the roof was replaced in the last 2 years. 

The building has a total of 12 rooms, 5 Bedrooms, and 2 Full Bathrooms.  The basement is partially finished and is HUGE, which can be used for storage, however is finished enough to use as a recreational room.  Taxes on this home are approximately $9,500.

Currenly, the first floor is occupied by a physician as a Medical Office.  It is not known at this moment if the tenant plans on staying put, but if not, no worries.  Our property managers can assist in finding a new tenant, which we would recommend as medical, law, office, or retail.  You also have the choice of simply renting it to a normal tenant who plans to live there.  Either way, you have excellent options since that first floor is zoned Commercial (C-3).  The first floor commands a rental of $1,200 to $1,400 per month minimum.  The second floor commands nearly the same, closer to $1,200. 

The price of this home is just under $340,000.  For the location, it speaks for itself.  It is only 4 miles to the Meadowlands where the world famous XANADU is opening its doors in mid 2010, and you are also less than 7 miles from the Lincoln Tunnel!  Inside of 10 miles, you have anything else you could ever imagine…Entertainment, fine dining, nightlife, etc…

Here is how the numbers would work if you purchased on a 30 Year Fixed Mortgage at 5.5% rate.  Rates are significantly lower for owner occupied home loans.

$1,500     Monthly Debt Service (Mortgage)

$791         Taxes Escrowed Monthly

$2,291     Total Debt / Escrows

Taking into considerating that you rent out the first floor at $1,300, your leftover monthly payment would be $991 per month if you are an owner occupant (This is actually cheaper than renting).  An investor would get a positive cash flow of about $300 per month.  Although the capitalization rate is slightly low for an investor (to some), this home has the perfect location and condition to nearly assure you a much higher future value and be in a league of its own in regards to available inventory for sale now or in the future. 

If you are interested in viewing additional pictures or would like any other information on this home or other Kearny NJ homes for sale, please do not hesitate to contact us.  We are your real estate experts for all of Hudson County multi family homes, single family homes, and condos for sale.  CONTACT US NOW

All sales cover the last 60 days and information provided is from the Hudson County MLS.  You can click on the links of the buildings to access the building’s exclusive pages where you can learn all you need to know about them and see up to date available condos for sale.

Click here to see a full Hoboken Condo Sales Report

Hudson Tea Building:  2 Condos sold.  A condo on the 2nd floor was listed at $469,000 and the sales price was a much lower $345,000 or $456 per square foot.  This was a short sale. 

The second condo, a studio, had more upgrades and a better view than the first condo.  Listed at $499,000, the actual sales price was $470,000, or $639 per square foot. 

Garden Street Lofts:  3 Condos have sold.  The first condo, a 1 bedroom, 1.5 bathroom unit was listed at $607,500, and eventually sold for $545,000 after 561 Days on Market.  $477 per square foot.

The second condo, another 1 bed, 1.5 bath unit was listed at $660,000, and eventually sold for $545,000 after spending 531 days on the market.  $519 per square foot.

The third condo, a 1 bedroom, 1.5 bath unit was listed for $625,500, and eventually sold for $575,000 after spending 566 days on the market.  $503 per square foot.

Maxwell Place:  2 Condos have sold.  The first condo, a 2 bed, 2.5 bath unit was listed at $1,349,990 and eventually sold for $1,204,195 after spending only 26 Days on the Market.  $681 per square foot.

The second condo, a 1 bedroom, 1.5 bath unit was listed for $650,000 and sold for $625,000 after spending 185 Days on Market.  $583 per square foot.

Sky Club:  1 Condo sold.  This 2 bedroom 2 bathroom condo was listed for $494,900 and sold for the asking price of $494,900 after spending only 20 days on the market.  $391 per square foot.

Harborside Lofts:  1 Condo sold.  This 2 bedroom 2 bath unit was listed at $959,900 and sold for $867,500 after spending 176 days on the market.  $478 per square foot.

Vesta Hoboken:  4 Condos have sold.  The first, a 2 Bed 2 Bath unit was listed at $498,000 and sold for exactly that after 270 days on the market.  $434 per square foot.

The second condo, another 2 bed 2 bath unit was listed at $585,000 and sold for $526,500 after spending 293 days on the market.  $461 per square foot.

The third condo, a 2 bed 2 bath unit was listed at $595,000 and sold for $563,000 after spending 48 days on the market.  $434 per square foot. 

The fourth condo, a 3 bed 3 bath unit was listed at $1,320,000 and sold for $1,080,000 after spending 213 days on the market.  $488 per square foot.

So there you have it.  There were 13 sales total in the last 60 days in these buildings over the last 2 months.  As you can see, there is negotiation room in many of the buildings and the Hudson Tea seems like a great building to look into if you are looking for a solid deal for your own home or investment condo.  Please call us at 877-688-7582 to set up a showing appointment in any units.  Please feel free to browse our “Advanced Search” in our MLS/IDX tool on our site.  You can specify the building or address you are looking for to see all availability.

June 2010 Hoboken Condo Report – Inventory & Absorption

For those of us that thought the First Time Homebuyer Tax Credit would have no affect on Hoboken, it looks like we were fooled.  Just look at our Quarterly Comparisons from 2009-2010 below for proof.  June posted phenomenal numbers.  Was this entirely due to the tax credit deadline??  There was a huge increase in sales volume, an increase in the average price sold, and a substantially lower number of active inventory.  With 147 homes in pending status at the moment, we expect July to continue from June.

CLICK HERE to view all Hoboken condos for sale and make an appointment with New Jersey Real Estate Guys for a free consultation or showing appointment.

Home prices declined 1 percent in the New York metropolitan area, which includes Hoboken, from April 2009 to April 2010, the Standard & Poor’s Case-Shiller index reported Tuesday. Prices in the region are back to the levels of April 2004, and are 21.7 percent below their peaks in June 2006.

Currently there are 511 ACTIVE Condo Listings as of July 1.  This is down 6.2% from June 1, where there were 541 Active Listings.

June Statistics:

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2009-2010 Quarterly Comparisons

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Current Rate of Absorption: 5 Months  (I calculate this by taking current inventory divided by recent full month of sales.  The average rate of absorption for 2010 is about 7 months in Hoboken)

Below are charts illustrating the average sales price and monthly sales volume for Hoboken Condos.  Click charts to enlarge.  To Preview the Full Statistic report for Year Over Year and Month Over Month for Hoboken condos CLICK HERE

Look for July to show some strong numbers as well.  There are 147 condos currently pending beyond attorney review.  It is clear that 2010 is producing more sales volume than 2009.  Prices have fallen since, but that is a strong sign that Hoboken is fighting for its equilibrium in the market.

New Jersey Real Estate Guys, located in Hoboken provides customers with the utmost amount of information in the local market.  If you are looking to buy or sell in Hoboken please contact us for a free consultation.  We can provide other data that could assist in determining your sales price if selling and determining a fair number to offer on condos you are interested in.  You can also call us direct at 877-688-7582.  We are your Hoboken Real Estate experts, one of the reasons our brokerage is #1 in Hudson County in sales volume.

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May 2010 Roundup – Hoboken Condo Sales, Inventory, and Absorption— CLICK HERE to view all Hoboken condos for sale

Come visit us at 4th & Hudson for a free consultation or CMA. Make an appointment

Put another decent month for Hoboken condo sales in the books.  Although only a hair lighter than April, the month of May was nothing to complain about.  As being friends with people within Morgan Stanley and other boutique firms, I am getting conflicting information on projections.  One of my boutiques said that prices could be on a moderate rise very soon.  Morgan Stanley said that there is a long road to recovery and an additional 5-10% drop in prices is likely.

What do they know anyway?!  Let’s look at some May numbers

Condos Sold :                                   68 (-1.5% from previous month)

Average Sales Price:                       $481,979  (-2.7% from previous month)

Average Days On Market:                76

Current Available Inventory For Sale:      542

Current Rate of Absorption:                      7.97 Months

Since January, prices have dropped by 15.1%.  Prices have dropped month over month, however sales volume has increased significantly.  January sales volume was 40 condos, and in May, we had 68 sales, a 41.2% increase in volume.  Share your thoughts below on what you think the effect of high volume and lower prices indicate. Our opinion is that people are taking advantage of low mortgage rates now, knowing that the Fed is going to be forced to increase rates likely by next year.  That and buyers are a bit more confident in things today, moreso than about a year ago.  It’s not science, just common sense.  A good thing is that there seems to be very little disconnect with buyers and sellers.  Buyers will only buy a good deal and sellers are giving them these days.  You wouldn’t see this type of sales volume with a buyer/seller disconnection.  This is a good thing, Hobokenites!

Below are some charts to show price and sales throught the year and back into 2009.  Click on images to enlarge.

On a side note, the most popular floorplans in Hoboken have been Studios and 1 Bedrooms historically.  While sales volume is up double since January’s 13 condo sale month, prices on these have slid 15.3% since the beginning of the year from $399k to $338k.

If you are looking for a condo in Hoboken, our projection of price projection is that brownstone units will continue to struggle a bit, however amenity buildings or waterfront properties could only see an additional 3-5% drop.  That is our projection and we’re sticking to it!

If you are planning on living in your condo for 3+ years, now is the time to start looking for a place you absolutely love.  Hoboken condos are unique in floorplan and style so if there is a one you love, giving up a few points this year for possible longer term gains in the long run could be worth it, especially in a market like Hoboken that shows historically good appreciation.

Call Scott with New Jersey Real Estate Guys at 877-688-7582 or e-mail us with any questions.  Feel free to call us for an appointment to come in and discuss buying and selling opportunities.  We are conveniently located in the Liberty Realty office at 4th & Hudson.

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April, 2010 Roundup – Hoboken Condo Sales – Inventory – Absorption Report

Well that’s more like it!  During the month of April, sales shot up as expected.  The first official full month of Spring typically generates sales in our urban district.  Now that the First Time Homebuyer Tax credit is expiring and the Fed’s no longer purchasing MBS’s, time will tell how our housing market will stand without being held on a crutch from government assistance.  It needs to happen sooner or later so let the changes begin!

April 2010 Statistics and Month over Month changes

Sales Volume :    69  (29.0%)

Average Sales Price:   $495,213  (-2.3%) (-4.4%)

Average Days on Market:  84

DABO:   218

Current Active Inventory:  532

Average Listing Price:   $524,698

Rate of Absorption:  7.7 Months

Indicative of these charts, April activity resembles Q4 of 2009 which ended in a bang.  Again, it will be interesting to see how our housing market progresses without government assistance.

So far in 2010, there have been 197 Condo sales in Hoboken where the average sales price has been $521,767.  The average sales price for the entire 2009 year was $507,878.

If you or anyone you know is looking to buy or sell a condo in Hoboken, please give New Jersey Real Estate Guys an opportunity to advise you on our expertise sales and marketing approach.  Contact us at 877-688-7582.

March 2010 Roundup – Hoboken Real Estate Report

Although sales have progressively increased month over month this year, sales have been disappointing after finishing 2009 on a very strong note.  I’ve been saying it since the birth of the First Time Homebuyer Tax Credit that after the tax credit expires at the end of this month in addition to the Government’s halt to spending on Mortgage Backed Securities, we may see some additional lag time until the job market picks up.

Although extending the Tax Credit again could produce positive gains in the housing market, we ultimately need to see how our economy can do standing on its own without using any Government programs as a crutch.  That said, it is still a fact that there are some good deals out there, but don’t expect your new home purchase to jump high in value anytime this year.  So let’s see how March panned out:

In March, 2010, there were 49 condos that sold in Hoboken.  The average selling price was $506,823.  March sales volume beat February by 21.5% (10 sales) but the selling price average dropped a tiny bit by 2.1%.

Currently, there are 526 Condos for sale in Hoboken.  The average list price is $523,889.  Inventory is up almost 12% since January and the average selling price has dropped nearly 11% since January’s report.

Taking this years’ decline in statistics we track into consideration, we feel that a further market adjustment is necessary to bring us to absolute bottom.  Look for Hudson County’s real estate bottom sometime by end of Q3 of this year and possibly as far out as Q4.  Make no mistake that Hoboken is one of NJ’s premiere urban cities and one that has so many off-setting factors, thus, we feel that a significant drop in prices is not in our near future.  Inflation will play a key part in real estate values as well.

February 2010 Roundup – Hoboken Condo Report

Another slow month for Hoboken real estate in the condo market.  Our excuse for January’s bad month could be attributed to the changing lending guidelines which always throw things out of whack for a while.  Due to the ongoing credit crunch, we believe that changes have affected the trading ratios for February also.

Although there is good news out there, people are more inclined sometimes to stay on the fence and wait it out.  Looks like many are waiting until the tax credit expires and want to see what happens then.  Everyone’s example is Cash For Clunkers.  We’ll see.  My opinion is that the expiration will have a negative impact on the national housing market, including Hoboken.  How much is not known, but due to low rates AND the tax credit, if you see a home you LOVE, I would start making some bids.  REMEMBER:  If the real estate is staged nicely and is priced properly, it doesn’t last on the market very long.   GO GET YOUR DEAL!!  Anyway, here are the February numbers:

In February 2010, 39 Condos traded (sold).  The average sales price was $517,512.

What is interesting is that after February of 2009, prices fell dramatically in Hoboken.  From February 2009 to July 2009, the average price of a condo sold in Hoboken fell by 21%.  However from July to the present day, condo sales prices have consistently risen and the overall sales volume has dramatically increased.

So far in 2010, the average price of condos sold in Hoboken is $542,515.  The average of the entire 2009 year of a condo sales price was $507,878.  So despite a slow first two months of 2010, prices are up and we expect sales volume to pick up with Spring just ahead.

Studios & 1 Bedroom Condos:  In February, there were 12 sales with an average trading price of $389,791.  There are currently 213 Studios and 1 Bedroom condos for sale in Hoboken with an average listing price of $380,016.  There are currently 37 DABO’s or Pending sales of studios and 1 BR’s.

2 Bedroom Condos: In February, there were 23 sales of two-bedroom condos.  The average sales price was $561,936.  There are currently 247 Two Bedroom condos for sale in Hoboken with an average listing price of $580,581.

3 Bedroom Condos:  In February, there were 4 sales of Three-Bedroom Condos in Hoboken.  The average sales price was $821,500.  There are currently 39 three-bedroom condos for sale in Hoboken with an average listed price of $937,812.

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. There are currently 505 Condos for sale in Hoboken.  At February’s pace of 39 sales, the current rate of absorption in Hoboken is almost 13 months.

January 2010 Hoboken Condo Report

Hoboken started the new year a little slow, however this is quite common in most markets today. A key factor is the ever-changing lending guidelines and restrictions. FHA loans are enforcing more strict qualifying factors and Conventional mortgages are requiring everything short of a bone marrow sample from borrowerrs. As guidelines are adapted to, expect February and March to be more active than January.

As of February 1, 2010, there are 467 Active Condos for sale in Hoboken where the average listing price is $540,242.

There are currently 123 DABO’s, which means listings under contract.

In January, there were 40 Condo Sales in Hoboken. The average price of a condo sold was $567,518.

See Graphs & Charts below pertaining to January 2010 real estate activity and year over year and month over month comparison.

Indicative of these charts is that inventory sold is higher in Year over Year analysis.  The average price of a condo sold Year over Year is down slightly, almost not even worth reporting.  The first quarter of 2010 will likely show steady increases from the first month of January in inventory sold.  Prices should remain near stagnant and it would be very surprising to us if Hoboken experiences any steep price correction.  We do not anticipate a V-shaped recovery, but we also do not predict a worrisome value decline.

As always, if you are looking to purchase or sell a condo in Hoboken, New Jersey Real Estate Guys would value an opportunity for an interview to be your real estate professional.  Please Contact Us for an appointment, or call us direct at 877-688-7582

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Happy New Year Hoboken!!  End of Year Report

Instead of doing a December inventory / sales report as we normally do, I figured it was a great time to do some annual comparisons to 2008.  It’s been an interesting year for sure.  Unemployment, housing declines, weak dollar, bank failures, etc.  All in all, today, January 1, I am cautiously optimistic about what 2010 is going to bring.  Don’t forget to check out our 2010 predictions.

Although there remains pressure on real estate values, with the help of government tax incentives, we should see activity continue to increase, which is all we can ask for at this time.  I predict there will be more “connection” between buyers and sellers in 2010 as the equity rallies of mid/late 2009 created a disconnection due to sellers expecting top dollar and buyers only willing to make under market bids.  So without further ado, here it goes.

2008 – A total of 800 Condos sold in Hoboken with an average sales price of $528,254

2009 – A total of 634 Condos sold in Hoboken with an average sales price of $502,126

2009 Showed a 21% drop in sales activity and an average of a 5% drop in prices.  Overall, we are seeing asking prices and current sales prices down about 12% in Hoboken from its peak.  2010 will be a big year as unemployment is expected to peak, Government Tax Credits continue, and rates remain low.

December 2008:  A total of 29 Condos sold in Hoboken with an average sales price of $543,183

December 2009:  A total of 63 Condos sold in Hoboken with an average sales price of $495,665

As Hoboken and all of Northern NJ search for its market bottom, Q4 of 2009 has skyrocketed in housing statistics against 2008 when comparing absorption.  Prices have dropped considerably since last year and should provide for extra motivation for buyers and investors.  See charts below for averages.  Click Charts to enlarge:  Click Here to Download Full PDF Report

As of January 1, 2010, Hoboken’s absorption rate is 6.5 Months, down from nearly 10 months from a year ago today.

On June 1, 2009, there were 577 condos for sale in Hoboken.

On January 1, 2010, there are only 414 condos for sale in Hoboken, a clear indication that inventory is shrinking and with sales drastically increasing, absorption rate remains steadfast. Inventory is nearly 30% less than what it was mid 2009.

2009 Market Tidbits:

In 2008 there were 29 sales in the Hudson Tea Building with an average sales price of $618,587.  In total, 11 of the 29 sales were 1 bedroom condos whose average sales price was $549,453.

In 2009 there were 11 sales in the Hudson Tea Building with an average sales price of $528,181.  In total, 6 of the 11 sales were 1 bedroom condos whose average sales price was $454,166, which is 18% less than what they sold for last year.

There are currently 13 short sale listings in Hoboken.  Two of them are in the Sky Club.

3 Luxury Condo units sold or DABO’d at the Hoboken W Residences in December 2009.  There are currently 4 additional condos for sale at the Hoboken W.

Conclusion:

In our first full year going online globally, New Jersey Real Estate Guys has been a huge success.  Website traffic has quadrupled and we are recognized as one of the Top 5 private real estate websites in the state of NJ.  We hope that you consider using NJ Real Estate Guys when considering buying or selling a home in Hoboken.  We would value an opportunity to be interviewed for the job!  Have a wonderful 2010 and may it be prosperous to all.  Thank you for an interesting 2009.

Hoboken Real Estate Report- NOVEMBER 2009     Condos Sold & Inventory For Sale

The following is a report for Hoboken real estate , condos sold, and condos for sale during the month of NOVEMBER.  Year to date numbers are included as well.  Only condos have been included in this report.  Don’t forget…If you would like to search for Hoboken condos for sale, visit our MLS/IDX searching tool and call NJ Real Estate Guys at 877-688-7582 to set up a showing appointment or if you would like info on how we can help sell your condo.

The total number of Hoboken condos sold was 55 during the month of November, 2009… 19 fewer than condos sold in October 2009, but 18 more than the month of November in 2008.  This brings the Year to Date condos sold in Hoboken to 571, an average of about 52 condos sold per month.  At this point last year in 2008, the Year to Date sales were 771.  There has been a drop of 26% in sales activity.  This, however is largely the effect of the “fear” mentality that gripped the country following last years Q3 Financial collapse that carried over to this year.  Sales have dramatically increased month over month in 2009 largely due to the homebuyer tax credit, low rates, market optimism, etc…

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. As of December 1, 2009, there were 481 condos for sale.  As mentioned, the total number SOLD during November was 55.  The absorption rate for Hoboken based on November’s sales figures is 8.75 months, slightly higher than a month ago.  (Builders typically use the 4 month rule to determine whether to begin new projects.  More than 4 months of inventory is less favorable for adding new construction inventory.  Less than 4 months is considered favorable)

Studios / 1 Bedrooms: There are a total of 159 Studio and 1 Bedroom condos for sale in Hoboken.  A total of 20 Studio and One Bedroom condos sold during the month of November, 5 fewer than what sold in October.  The average listing price of the condos sold was $361,871 and the Average sales price was $340,375 for 1 bedroom / studio units.  The highest sale was $407,500 (Prospect Hill)  and the lowest sale was $232,500, a brownstone condo near 2nd & Grand.  The absorption rate for 1 Bedroom condos in Hoboken is 7.95 months.  Average Days on Market for Studio and 1B condos sold was 106 Days.

Two Bedroom: There are a total of 262 Two Bedroom condos for sale in Hoboken.  A total of 28 Two Bedroom condos sold in November.  The average listing price of sold 2 BR condos was $536,798 and the Average sales price was $518,275.  The highest sale was $867,500 (Harborside Lofts) and the lowest was sold for $321,000 located on 4th Street.  The current absorption rate for 2 bedroom condos in Hoboken is 9.35 months.  Average Days on Market for 2B condos sold was 118 Days.

Three Bedroom: There area total of 53 Three Bedroom condos for sale in Hoboken.  A total of 7 Three Bedroom condos sold in November.  The average listing price of sold 3 BR condos was $749,577 and the Average sales price was $716,436.  The highest sale was $1,045,000 (New Construction near 2nd & Bloomfield) and the lowest sale was for $467,552, located near 5th & Monroe.  The absorption rate for Three bedroom condos in Hoboken is 7.57 months.  Average Days on Market for 3B condos sold was 78 Days.

Four Bedroom & Higher: Very few care about 4’s and higher but quickly, there are 7 Active Listings as of December 1, 2009.  Not a single condo consisting of 4 bedrooms or more sold during the month of November.

And there you have it!  The November Hoboken Real Estate Report.  New Jersey Real Estate Guys always has their fingers on the pulse of the market for your due diligence.  Please contact us if you would like to discuss any future Hoboken real estate purchases or sales.  We would love an opportunity for an interview!  If you are interested in previous months’ sales and inventory activity, continue reading below.

Hoboken Real Estate – October 2009 Condo Sales

The total number of Hoboken condos sold was 74 in the month of October.  This brings the Year to Date condos sold in Hoboken to 516, an average of about 52 condos sold per month.  At this point last year in 2008, the Year to Date sales were 734.  There has been a drop of 30% in sales activity.  This, however is largely the effect of the “fear” mentality that gripped the country following last years Q4 world market collapse.  Sales has dramatically increased month over month in 2009 largely due to the homebuyer tax credit, market optimism, etc.

Listing Price versus Sale Price:  In October of 2009, the Average listing price of condos sold was $498,963.  The Average sales price was $475,696.  This means that sellers received over 95% of asking price, a positive sign.

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. As of November 1, 2009, there were 527 Active Listings of Hoboken condos for sale.  As mentioned, the total number SOLD during October was 74.  The absorption rate for Hoboken based on October’s sales figures is 7.12 months.

Studios / 1 Bedrooms: There are a total of 175 Studio and 1 Bedroom condos for sale in Hoboken.  A total of 25 Studio and One Bedroom condos sold during the month of October.  The average listing price of the condos sold was $387,426 and the Average sales price was $368,375.  The highest sale was $625,000 (Maxwell Place)  and the lowest sale was $111,385, a condo near 5th & Willow.  The absorption rate for 1 Bedroom condos in Hoboken is 7 months.  Average Days on Market for Studio and 1B condos sold was 116 Days.

Two Bedroom: There are a total of 286 Two Bedroom condos for sale in Hoboken.  A total of 43 Two Bedroom condos sold in October.  The average listing price of sold 2 BR condos was $513,537 and the Average sales price was $492,236.  The highest sale was $825,000 (another in Maxwell Place) and the lowest was sold for $265,000 located near 7th & Willow.  The current absorption rate for 2 bedroom condos in Hoboken is 6.65 months.  Average Days on Market for 2B condos sold was 136 Days.

Three Bedroom: There area total of 59 Three Bedroom condos for sale in Hoboken.  A total of 5 Three Bedroom condos sold in October.  The average listing price of sold 3 BR condos was $881,310 and the Average sales price was $819,200.  The highest sale was $1,320,000 (Vesta Hoboken – Observer Hwy) and the lowest sale was for $640,000, located near 1st & Willow.  The absorption rate for Three bedroom condos in Hoboken is 11.8 months.  Average Days on Market for 3B condos sold was 106 Days.

Four Bedroom & Higher: Very few care about 4’s and higher but quickly, only one 4-bedroom condo sold in Hoboken in October.  The listing price was $749,000 and the sales price was $730,000.  It was on the market for 135 days.

So there you have it for the month of October.  Sales have been a little down, but there are great signs of improvement.  Remember, Hoboken was approved for their highly needed pump station that will mitigate the water retention in the area during and after rainstorms, a major boost to property value stygma in these areas.

If you would like any additional information regarding Hoboken real estate, please do not hesitate to contact us.  We are the best in the biz for a reason.  We are sensitive to your criteria and maximize your dollar on real estate.

September 2009 Update

Due to my analysis on internet searching activity, many lookers landing on our website have been searching for “hoboken real estate” or “hoboken condos for sale“.  So I figured I would start doing a monthly update on active inventory and other activity such as pending and sold.  I think it’s pointless to show withdraws as most of them hit the market again within days anyway.  So, let’s get at it.

All statistics are based off of information gathered from the Hudson County MLS and are as of September 16, 2009.  Note: Always keep in mind that DABO’s (under contract) condos are not clearly indicative of the actual agreed sale/purchase price.  We won’t really know this until the condos officially close.  Our analysis is for Studios, 1, 2, and 3 bedroom Hoboken Condos.  See at the bottom for ABSORPTION RATE

Studio Condos for sale and those sold between 8/15/09 and 9/15/09

1 Bedroom Condos for sale and those Sold in Hoboken 8/15/09 thru 9/15/09

2 Bedroom Condos for sale in Hoboken and those sold from 8/15/09 thru 9/15/09

3 Bedroom Condos for sale in Hoboken and those sold from 8/15/09 thru 9/15/09

As of September 16, there are a total of 515 Hoboken NJ Condos for sale .  Over the last 30 days, a total of 68 Condos have sold in Hoboken.  An absorption rate is calculated by the number of overall active listings DIVIDED by real estate sold the previous month.  (We did our report in mid-month…Absorption rate is relative).  An absorption rate is indicative of how long of time will the current inventory for sale be “absorbed” or “bought” based on the previous months’ sales activity.  Based on today’s numbers, the absorption rate for Hoboken, NJ condos stands at 7.57 months. Many people have their own opinions on absorption rates.  Let’s hear yours in our comment section below!

Interested in a Hoboken Condo?  Contact us today for a free consultation.  We would value an opportunity to earn your business through experience.

CLICK HERE for all Jersey City condos and homes for sale.  Be sure to specify your preferred district, ie Bergen-Lafayette, Downtown, Heights, etc.

OK, so as we wrap up the first quarter of 2010, we bring you the Jersey City real estate report for condos.  After finishing off 2009 on a positive note in regards to sales volume, the first quarter of this year has been a little disappointing, however slightly better than Hoboken sales volume.

In January of this year, there were 37 condos sold in Jersey City with an average selling price of $336,150.  The average days on market was 102 days.

In February, there were 37 condos sold with an average selling price of $351,154.  The average days on market was 102 days.

In March, there were 40 condos sold in Jersey City with an average selling price of $313,881.  The average number of days on market for a condo sold was 106 days.

So in total for the first quarter of 2010, there were 114 condo sales with an average selling price of $333,728.  Since August 2009, sales volume and selling prices have pretty much stagnated, not doing much one way or the other.

Currently there are 883 condos for sale in Jersey City with an average listing price of $362,886.  If using March figures for calculating rate of absorption, Jersey City’s absorption rate is about 24 months, which clearly indicates a buyer’s market.

Downtown Jersey City, considered the more popular urban section has typically fares better than most other urban districts in terms of volume.  There are 388 Condos for sale downtown with an average listed price of $481,970. During the first quarter of 2010, most of the sales volume occurred Downtown with 77 of the 114 total sales taking place in Downtown Jersey City.  The average price of a condo sold was $432,563.

In March 2010, there were 33 condos sold Downtown with an average selling price of $444,948.  As mentioned, there are 388 condos for sale in Downtown Jersey City.  Using March sales volume of 33 condos sold, Jersey City’s rate of absorption is 11.75 months indicating a buyer’s market.

As the First Time Homebuyer Tax Credit expires along with the Goverment cancellating of purchasing MBS’s, look for a lag in volume and selling prices while the market adjusts from using government programs as a crutch to standing on our own.

Happy New Year, Jersey City!

Instead of doing a December inventory / sales report as we normally do, I figured it was a great time to do some annual comparisons to 2008.  It’s been an interesting year for sure.  Unemployment, housing declines, weak dollar, bank failures, etc.  All in all, today, January 1, I am cautiously optimistic about what 2010 is going to bring.  Don’t forget to check out our 2010 predictions.

Although there remains pressure on real estate values, with the help of government tax incentives, we should see activity continue to increase, which is all we can ask for at this time.  I predict there will be more “connection” between buyers and sellers in 2010 as the equity rallies of mid/late 2009 created a disconnection due to sellers expecting top dollar and buyers only willing to make under market bids, however Jersey City, given the circumstances, did rather well in 2009 and it only looks as if things are getting better.  So without further ado, here it goes.

2008

• In 2008, there were 780 Condos sold in Jersey City
• The average sales price of a condo sold in 2008 was $400,498
• Of the 780 Condo sales, 405 were from the Downtown district
• The Downtown Condos sold for an average of $506,691

2009

• In 2009, there were 530 Condos sold in Jersey City
• The average sales price of a condo sold in 2009 was $362,410
• Of the 530 Condo sales, 293 were from the Downtown district
• The Downtown Condos sold for an average of $433,357

The data above indicates that there was a 32% drop in Jersey City Condo sales activity in 2009 when compared to 2008.  The average sales price of all condos sold in Jersey City fell 9.5% in 2009 when compared to 2008.

The data also indicates that there was a 27.7% drop in condo sales activity in the Downtown district of Jersey City.  The average sales price of condos sold Downtown JC fell by 14.5%.  The activity and sales price difference were the result of a nationwide real estate correction.  The charts below indicate that Jersey City may have already hit bottom and is on its way back to normalcy.  Click charts to enlarge and Click following link for  Jersey City Real Estate Report in Excel

If you compare Q4 of 2008 and Q4 of 2009, it is very clear that sales activity is in full reverse.  As sales activity was declining in 2008 toward year’s end, activity has noticeably increased and improved over the months of 2009.  The interesting fact is that Jersey City condos only suffered a 9.5% adjustment in values.  This is a great sign from a market that relies partially on NYC economy.  With the assistance of government incentives, we see positive activity during the first half of 2010.

In our opinion, market conditions are favorable for a slow recovery.  We anticipate that once the government incentives expire, there may be a 2.5% – 5% dip in the median, however this will be negated by a strong Q4 of 2010 as unemployment is expected to peak and buyer mentality of “missing the bottom” creates further sales activity.

The opinion of New Jersey Real Estate Guys is that today is a favorable time to buy in Jersey City.  Taking advantage of low rates and the First Time Homebuyer Tax Credit will off-set any/most speculation of further downward trends, which are expected to be barely noticeable.

So if you are in the market for real estate in Jersey City, look no further than New Jersey Real Estate Guys.  With offices in Jersey City combined with our local reputation, we can help you achieve your dream condo or investment property.  Contact us today for a consultation.  We would value an opportunity to interview for the job of being your real estate agent.

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November Update 2009

The following is a report for Jersey City real estate and condos sold during the month of October.  Year to date numbers are included as well.  Only condos have been included in this report.  Don’t forget…If you would like to search for Jersey City condos for sale, visit our MLS/IDX searching tool and call NJ Real Estate Guys at 877-688-7582 to set up a showing appointment or if you would like info on how we can help sell your condo.

Jersey City Real Estate – October 2009 Condo Sales

The total number of Jersey City condos sold was 61 in the month of October.  This brings the Year to Date condos sold in Jersey City to 410.  At this point last year in 2008, the Year to Date sales were 702.  There has been a drop of 42% in sales activity for condos.  This, however is largely the effect of the “fear” mentality that gripped the country following last years Q4 world market collapse and tighter credit markets.  Sales have dramatically increased month over month in 2009 largely due to the homebuyer tax credit, market optimism, etc.

Listing Price versus Sale Price:  In October of 2009, the Average listing price of condos sold was $365,000.  The Average sales price was $345,577.  This means that sellers received over 94.7% of asking price, a positive sign.

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. As of November 1, 2009, there were 790 Active Listings of Jersey City condos for sale.  As mentioned, the total number SOLD during October was 61.  The absorption rate for Jersey City condos based on October’s sales figures is 12.95 months.

Studios / 1 Bedrooms: There are a total of 322 Studio and 1 Bedroom condos for sale in Jersey City.  A total of 33 Studio and One Bedroom condos sold during the month of October.  The average listing price of the condos sold was $323,499 and the Average sales price was $309,662.  The highest sale was $460,000 (Shore Club)  and the lowest sale was $78,000, a condo in Journal Square.  The absorption rate for 1 Bedroom condos in Jersey City is 9.75 months.  Average Days on Market for Studio and 1B condos sold was 70 Days.

Two Bedroom: There are a total of 385 Two Bedroom condos for sale in Jersey City.  A total of 22 Two Bedroom condos sold in October.  The average listing price of sold 2 BR condos was $396,763 and the Average sales price was $371,425.  The highest sale was $650,000 (Shore Club South) and the lowest was sold for $115,080 located in Jersey City Heights district.  The current absorption rate for 2 bedroom condos in Hoboken is 17.5 months.  Average Days on Market for 2B condos sold was 110 Days.

Three Bedroom: There area total of 77 Three Bedroom condos for sale in Jersey City.  A total of 5 Three Bedroom condos sold in October.  The average listing price of sold 3 BR condos was $482,820 and the Average sales price was $450,000.  The highest sale was $755,000 (Port Liberte) and the lowest sale was for $235,000, located in the Greenville section.  The absorption rate for Three bedroom condos in Hoboken is 15.4 months.  Average Days on Market for 3B condos sold was 66 Days.

Four Bedroom & Higher: Very few care about 4’s and higher but quickly, only one 4-bedroom condo sold in Jersey City in October.  The listing price was $449,000 and the sales price was $440,000.  It was on the market for 66 days.

So there you have it for the month of October.  Sales have been a little down, but there are great signs of improvement.  Remember there are over 1,600 new Wall Street jobs coming to Jersey City.  This should assist in market absorption in addition to the homebuyer tax credit extension and higher income levels for approval.

If you would like any additional information regarding Jersey City real estate, please do not hesitate to contact us.  We are the best in the biz for a reason.  We are sensitive to your criteria and maximize your dollar on real estate

Our Income Property of the day is in Heights section of Jersey City only approximately 1 mile west as the crow flies from say 13th & Hudson in Hoboken.  It’s a 6 unit residential building with brick all the way around.  The apartments have tile and wood floors.  Public transportation is just a few steps from this building and the rental history has been near perfect over the last 5 years and currently has an Annual Gross Income of $64,000.  On my way out today, I drove by the building and it looked in great exterior condition and after calling the sellers’ agent, found out the interior had extra large rooms, nice bathrooms, and in impeccable condition.  (He said you gotta see it to believe it so until I do, I’ll take his word for it)

So to not bore you, I will get to the details, and if you would like to see this property, please contact us for an immediate showing.  I do not think this one will last long in my opinion given the recent reduction in asking price to under $520,000.  The investment potential with this building looks good and may need a bit more due diligence, but comfortable in knowing that a deal can be had here.

Price:                                $520,000

Taxes:                              $7,772

Insurance:                     $3,700

Miscellaneous:            $5,000 (covers vacancy factor + minor repairs if necessary)

If you are a cash buyer, great!  If you are a financing buyer, the best Loan To Value (LTV) you will likely get on an investment building loan would b 65%, meaning you will need about 35% as a down payment plus your closing costs.  For the sake of this article, let’s assume your loan rate and terms are as follows:  5 Year Fixed Amortized over 30 Years with a interest rate of 5.75%.

 Taking the numbers above into consideration, here is what the banks and investor minds want to know:  Your annual income is $64,000 off rental income.  Your operating expenses which include our taxes, insurance, and miscellaneous comes to $16,472.  If you subtract your Operating Expenses from your annual income you get a Net Operating Income (NOI)of $47,528.  The $47,528 would be what you will take home in income before taxes per year.   If you divide your NOI by your purchase price of $520,000, you get a Capitalization Rate of nearly 9.2% a comfortable number for investors of multi-family investment buildings. 

If you are financing 65% of the $520,000 or $338,000 (principal amount after down payment), you will have a monthly debt service of about $2,220.  Your monthly income on the property of $5,333 will give you a monthly surplus income of $3,113 or annual income of $37,356.  After paying your operating expenses of $16,472, you are left with an annual Cash Flow of $20,884, almost a 20% annual return on your investment dollar for dollar. 

Now that I have you a little excited, get in touch with us and set up a showing.  This building would look good in your portfolio.  A great opportunity for Jersey City real estate

On Sept. 10, an easement was granted for property along Observer Highway in the Southeast portion of Hoboken.  Thanks to this easement, granted by the Hudson County Board of Chosen Freeholders, the North Hudson Sewage Authority can now proceed with their proposed wet weather pump station. 

Sky Club residents have been dealing with this since its existence and area real estate sales have been behind other sections of Hoboken that do not have this problem.  The design of this pump station will reduce storm water flooding by a drastic 80% in those low lying areas of Hoboken. 

“This is a crucial victory for Hoboken,” Mayor Dawn Zimmer said. “My fight to solve the flooding problem was one of the main reasons I ran for Mayor.  Moving forward,” Zimmer said, “I am working to implement an integrated approach that combines the pump station with green technology solutions.”

The construction of the water pump willl likely have a positive impact on real estate and condo sales in the southwest area of Hoboken.  Sky Club sales activity will no doubt be indicative of any cause/effect of the pump.  A concerning issue with local residents is the noise a water pump could bring as a form of obsolescence to the neighborhood.  If the noice is intolerable, this will likely have a negative effect on real estate sales, however with the development mentality of Zimmer, I can only imagine that by utilizing “green technology” somewhere in the design is for noise mitigation.  The recent pump station built in Weehawken has been designed as a residential home so if Hoboken follows suit, chances are you won’t even be able to tell you live right next to a pump station!

Although approved, this pump station will be costly so the mayor will likely be applying for FEMA grant opportunities to offset some/most of the cost.  Although New Orleans was a disaster zone, if they can get their levees fixed by FEMA, why can’t Hoboken take proactive measures to protect the area/people by implementing advantageous equipment? 

This is great news for Hoboken real estate, so stay tuned on further updates.  If you are a local living in the SW part of Hoboken, share your thoughts below and let us know what you think of the pump station.

Jersey City, NJ

View all Active Jersey City real estate for sale

Downtown Jersey City:  Newport, Paulus Hook, and Exchange Place

Historic Downtown:  Hamilton Park, Grove Street, Harsimus Cove, and Van Vorst Park

The Heights:  Western Slope, and Central Avenue Shopping Area.

Journal Square:  West Bergen/Lincoln Park and the Hudson Mall

Bergen Lafayette:  Communipaw Avenue, the artery between West Side with Liberty State Park, Greenville, which features Port Liberte and other upscale residentail neighborhoods. 

Downtown Jersey City has many attractive areas of real estate.  Newport and Exchange Place are redeveloped waterfront areas consisting mostly of high rise residential buildings, hotels, retail, and office buildings.  Newport is a planned mixed use community, made up of residential high rises, condo buildings, office buildings (JP Morgan Chase Building), a marina, schools, and plenty of hotels, restaurants, fine dining, nightlife, and other entertainment.  Located only a 5 minute light rail trip to downtown Hoboken, residents can live away from the nightlife density in Hoboken to live in a quieter residential community in Newport.  Don’t forget about the Newport Center Mall, Movie Theater, PATH station, and many other convenient locations. 

Exchange Place, which was the first part of the area to redevelop, built over the old Jersey City Penn Station, is now full of new real estate and is New Jersey’s side of busy business.

Journal Square is in the midst of real estate rehabilitation.  Journal Square is going to be the next big area of Jersey City.  Redevelopment plans for residential towers and retail should relate to the same redevelopment as to what occurred over in Newport.  To the north of the square on Newark Avenue lies India Square, where you can find over 100 Indian ran businesses.  This area is one of the largest Indian neighborhoods in all of New Jersey.  Saint Peter’s College  is located in this section, just 10 blocks south of Journal Square in the McGinley Square section of Jersey City. 

The West Bergen of Jersey City houses very diverse neighborhoods including Lincoln Park / West Bergen as well as the Marion Section, Society Hill, and New Jersey City University.  On the West Side you will find many different ethnic businesses from Filipino to Indian to West Indian which line the West Side Avenue. 

If you are interested in relocation or real estate related material for any area of Jersey City, please contact us for a consultation or relocation package.  We have plenty of additonal information, including the areas of The Heights, Bergen-Lafayette, and Greenville.

Spacious and bright, extra large floor plans, hardwood floors, many residences with 9 ft. floor to ceiling windows and balconies. Gourmet kitchens with GE Stainless Steel appliances and custom cabinetry. Washer/dryer, elevator and indoor parking. Convenient access to Manhattan via the Lincoln Tunnel, PATH trains and ferries to New York. Walking distance to the exciting Hoboken lifestyle. 

Also available via auction is 1300 Park in Hoboken.  These are 2 bedroom units and the opening bid will likely be $150,000.  Originally priced from $580,000 to $600,000, these condos hold tremendous value if purchased right.  CLICK HERE for pictures.  8- Two and three bedroom units will be sold with 3 selling no matter what the final bid may be!

Open House viewings are available.  Please contact us to set an appointment.  We can also assist in auction if you are not experienced in real estate auctions in Hoboken.  Remember, a 5% deposit will be required at closing bid and the balance in total will be due by the end of business day.

Hoboken real estate can arguably be at the bottom of the barrel.  It may or may not be.  What I do know is this – builders will begin to entertain new construction at the 6-7 month point which is the break even time parameter of debating a buyers or sellers market.  Although we are not quite there yet, I think the numbers are indicative to how close we can possibly be to a balanced real estate market. 

This graph below is a general graph taken from all residential real estate inventory numbers such as condos, co-ops, multi-family and single family homes.  If you are interested, New Jersey Real Estate Guys can structure a specific analysis for your property based on inventory / sales levels of your specific pricepoint.  If you are interested in finding out how we come to our calculations to verify statistics, please visit our Hudson County Absorption Rate  page

As many of you know, the first baseball game EVER was played in Hoboken at Elysian Park (10th & Hudson).  Frank Sinatra was born and raised in Hoboken. 

Most importantly, Hoboken offers an ultra urban atmosphere, yet just a Johnny Damon throw away from any street, bar, nightclub, salon, business, etc in New York City.  (For those of you who aren’t Yankee fans, Johnny Damon couldn’t hit sand if he was standing on a beach).  Real estate prices have been all over the map.  Once a very expensive place to live, prices in Hoboken have come down nearly 15% since the peak, creating a more affordable option than the past, and an even more significant affordability to New York City housing prices. 

Comprised of a small amount of single family homes and dominated by browstones, apartments, and condos, Hoboken is also attractive for small families.  Landscaped with beautiful parks, piers, and facilities, Hoboken is a great atmosphere to raise your children while getting them involved in every extra carricular activity known to America.

Is Hoboken real estate at the bottom?  Many say no.  I say “I don’t know.”  What I do know is this.  Mortgage rates are so low that if you buy now or wait 2 years, you may find yourself in a “wash” position.  You may find yourself paying less for a purchase in 2 years, but many expect interest rates to go higher by that time, increasing your monthly debt. 

If you are looking into Maxwell Place, the Hudson Tea Building, or other luxury condo buildings, don’t expect prices to drop THAT much more.  Most of the owners of these units have paid down a lot of the mortgage to give them the equity necessary in the event they need to bail, or some of them are employed executives that don’t pay too much attention to what we think, because they have more money than they know what to do with.  Point is, they are staying and waiting out the storm.

Hoboken NJ has plenty for one to do.  After work, you can unwind with a nice stress relieving walk along the Hudson River, or you can enjoy a martini at one of the many bars and lounges where people look forward to networking and hanging out with colleagues talking about the present days’ successes.  Hey…that’s Hoboken.  Hoboken is a very small town.  It is only a matter of time before you meet about 50% of the local population. 

So if you’re going to entertain the idea of relocating to Hoboken, look no further that New Jersey Real Estate Guys.  We have helped everyone from locals, investors, and celebrities.  We are Hoboken’s preferred realty service.  Looking forward to helping you pack!