This article will focus on the Hoboken Condo Market.  There are many descriptive words we can use here.  Looking at the leading indicators we look at to determine the health of the Hoboken condo market, I can say with confidence that 2012 will be a positive year for Hobokenites.  I also believe that those that are on the fence about buying and make the decision not to, will look back in 2014-2015 and wonder in hindsight why they didn’t get in on a significant opportunity in 2012.

The most glaring improvement is the available inventory for sale and the depletion of inventory from 2011 to the end of 2012 as shown in the line graph below..  Without going into extreme detail, it is pretty self explanatory here:

In January 2011, there were 477 condos for sale in Hoboken.  In January 2012, there are only 187, a reduction of inventory by a staggering 60%.  The pace of sales volume, which calculates into the “rate of absorption” is along the same trends as a year ago.  Although 2011 sold about 14% less condos than in 2010, we shouldn’t forget the main reason was the First Time Homebuyer Tax Credit which expired mid-year 2010.  In June 2010, there were 134 condo sales.  In June 2011, things were normal or average with a Hoboken sales volume of 72.

If inventory is coming down and the pace of sales is consistent which happens to be the case, you can expect more significant competition amongst buyers.  Our current listings are not lasting long on the market.  Almost all of our listings, we are calling a “highest and best offer” situation, which is music to seller’s ears.

Another indication that the market is improving is the Price Per Square Foot of condos sold.  The 1 and 2 bedroom market was almost flatline since Q1 of 2011.  That was a great sign of recovery and was a clear end to the downward trend of prices.  The end of the year of 2011 showed the beginning of an upward trend in square foot prices.

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We are seeing a lot of increased interest in 3 bedroom units in Hoboken as a result of more families moving into town and preferring a more urban lifestyle with proximity.  A tradeoff we are seeing is the family with multiple vehicles moving to Hoboken and downsizing to only 1 vehicle.  Only about 4% of the marketplace consists of 3+ bedroom units.  They are in very high demand at the moment.  The price per square foot of a 3 bedroom condo shot up from $395 / SF during Q4 of 2010 to $434 during Q4 of 2011, almost a 10% increase in value.

Sales activity was almost dead even in 2011 as it was in 2009, however about 8% less than 2010.  Again, we blame that on the First Time Homebuyer Tax Credit.

The average sales price of a condo in Hoboken in 2011 was $494,723, down from $498,135 in 2010.

Expect to see a slow slow month for January.  DABO’s or pending sales are down in November and December.  Unless January shows a more active number in January, we can expect February to be equally as slow.  We expect inventory levels to creep up just a bit before the spring buying season, however just as important, we anticipate a huge buyer frenzy due to improving confidence, historically low interest rates, and lower prices.  With the Fed agreeing to hold interest rates down, buyers will increasingly confident that if they find the right deal, affordability has re-entered the market.

Check out the charts below.  What are your thoughts on predicting how the first quarter will pan out.  For readers who register on our site, I will send you our thoughts on what we think.  Comment your predictions below in the designated area.

As a testament to all of our hard work, analysis, and research, our clients have successfully achieved all of their goals whether it was to buy or sell.  We are eliminating the disconnection between buyers and sellers which is one of the quickest ways to stabilize a market.

If you or anyone you know is looking to buy or sell in Hoboken, you have come to the right place.  Give me a call direct at 877-688-7582 or e-mail me at Scott@NewJerseyRealEstateGuys.com.

To browse all available condos for sale in Hoboken, CLICK HERE>

As the winter progresses, we don’t see a whole lot of change in the typical patterns.  December will remain moderate, but foot traffic will be comprised of more serious buyers.  If you are a seller, remember, that during the summer, people will go on Sunday drives just to take advantage of the snacks while touring homes in nice weather.  Those that do this in the colder months are historically much more serious types.  Some advice to sellers would be to treat every lead you have on your home seriously because you never know!

In Hoboken, the average price of a condo sold in November of $509,701 was higher than the annual average of $489,558.  The number of sales in November of 28, failed to meet the annual average of 51.  Keep in mind, volume fallout in winter is totally normal.  We look at rate of absorption which continues to improve steadily.

On December 1, there were 232 condos in Hoboken listed on the MLS.  In January, 2011, there were 386 condos on the market, a 40% reduction in inventory.  Some will say “Lucky Month”.  I think not…The inventory has fallen month over month quite a bit.  Here is the chart for inventory:

Regarding the macro market of Hoboken, investors are targeting condos with Capitalization Rates of 5-6% in Hoboken.  In 2011, the average rental rate in Hoboken improved 11.6%, one of the biggest metro jumps in the country.  There is a shortage of 3 bedroom condos and single family homes in Hoboken as only 5.5% of all inventory fits that criteria.  In a luxury building (asked not to be named), the sales manager said 46% of all sales this year went to investors.

Here is a look at November stats from this month and year over year change.

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It is our belief that we will not see a significant difference in home values until 2013, however on a micro/sub-market perspective, Hoboken is likely one that is going to defy the odds of that theory.  My theory was based on a national perspective.  The most recent jobs report, coupled by homebuyer confidence is going to be one of the reason why urban areas will recover first.

Investing in multi-family is always lucrative in the current economic conditions.  Shortage of rental stock means increasing rental rates.  Current MF buildings are being offered and sold at about 5-6% Cap Rates in Hoboken which means there is confidence that Cap Rates should improve nicely in the next couple of years.  Cap Rates at 5-6% today are better than what other investment vehicles can provide.  As long as you are aware of tangible risk, investors should have a field day with potential upside.

If you are looking at buying or selling real estate in Hoboken, call Scott Allan at 877-688-7582, or e-mail at Scott@NewJerseyRealEstateGuys.com.  Scott is the founder of New Jersey Real Estate Guys and located at Weichert in Hoboken, right near the PATH station.  Come see me and my team and find out why we are Hudson County’s most innovative agents.

During the month of September, the price per square foot of condos sold exceeded the annual average YTD.

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Below is a graph for how the price per square foot has performed year over year.

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Indicative of the graph above, the average price per square foot seems to be doing relatively well this year after arguably bottoming out sometime around February 2011.  Overall, we are seeing a higher demand in 2 Bedroom condos as opposed to anything else.  Despite the number of foreclosure filings in New Jersey, Hoboken only has about 8 short sale listings which is a great ratio to the 306 active condos for sale.  That is a ratio of 34:1 in favor of conventional listings (non short sales).

Sellers have been achieving about 98% of their asking price which indicates a good connection between buyers and sellers.  We consider anything less than 92% a buyer/seller disconnect which typically indicates a challenging market.

One of the most important things you can do for your home if you are a seller is STAGING.  Don’t leave clutter and a mess.  Make room and make it comfy for prospects to walk through.

Here are some September statistics for the Hoboken real estate market ( condos ).  Notice some distinct Year Over Year differences which is a nice thing to see!

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If you are playing devil’s advocate to the real estate market, be sure to differentiate markets and admit that all markets are LOCAL in nature.  Although Flipping may not be a viable option for buyers at this time, buying for the long term is recommended.  Recent mortgage rates have dipped below 4% and those looking to stay in their home longer than 3 years should strongly consider buying at today’s prices at today’s rates.

If you are a buyer or seller in Hoboken, visit me at our office on 1 Newark Street right next to the PATH station.  Be sure to ask for me, Scott Allan or my partner Marie Gomer right in the Weichert real estate office.  We would value an opportunity to assist in meeting your goals. You can e-mail us here, or call us direct at 877-688-7582.  Thanks and looking forward to meeting you.

Back to real estate…. Check this out..

The chart above shows active inventory at the beginning of each month dating back to January 2010.  This is a significant dropoff in Hoboken condo inventory on the market for sale.  In conjunction with low levels of Hoboken condo inventory, there were 54 sales in August.  As a result of the sales and the available inventory for sale of 292 condos for sale, the current rate of absorption in Hoboken is less than 5.5 months.  If we can keep a similar pace of sales and absorption throughout the next 5 months, I believe that the second quarter of 2012 will result in a booming Hoboken real estate market.

Below are the results of July real estate statistics for Hoboken for July 2010/2011.

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Every category with the exception of DABO’s is significantly improved in 2011, a great sign for a recovering housing market.  The Absorption Rate alone improved by over 3 full months, a HUGE positive swing.

We are seeing a huge amount of walk-ins at our office in town.  The increase in traffic is due to many factors.  Low interest rates, lower home prices, improved confidence, and what stuck out most to me this week was the amount of potential buyers expressing their frustration over missed deals.  Missed deals were the result of low offers, thinking too long which resulted in condo going into contract, and price increase.

As we approach fall, the market tends to fall off a bit until Spring.  A slight decrease in market activity is expected, however as the election looms in 2012 and the Fed continuing to think about ways to improve the economy, we expect Spring 2012 to be a boom.  This will sway fence-sitting buyers to act sooner, possibly decreasing the fallout from the winter buyer hibernation.

Below are some additional charts that will help you understand how far the condo market in Hoboken has improved year over year.

If you are looking for a professional real estate agent in Hoboken, we look forward to an opportunity to meet with you.  We offer free personalized consultations and market evaluations for buyers and sellers.  We also offer FREE home value estimates.  Feel free to call us direct at 877-688-7582 or e-mail us here.

A few things we are noticing:

• Price Per Square Foot (PPSF) of condos sold in Hoboken this year have stabilized.  PPSF is down from Q4 2010 but seeing stability is good.  Average PPSF for Studio and 1 Bedrooms for the year is $467 and Average PPSF for 2 Bedroom units is $442.
• Inventory is WAYYYY down
• Monthly Sales Volume and DABO’s are very consistent in patterns as 2009 and 2010.  If this holds true, expect monthly sales to remain stable and consistent at the current rate for the remainder of the year.
• With no current government incentives in place we are only 6 monthly sales per month on average less than 2010 when we had the First Time Homebuyer Tax Credit.  Buyers are taking advantage of bargains and mortgage rates.

Below are the July Statistics and performance charts/graphs for Hoboken 2011.  But before that, our written conclusion   If you are looking to buy / sell a condo in Hoboken, you have come to the right place.  As you can see, New Jersey Real Estate Guys has the most analytic and professional experience in Hoboken to date.  With our offices conveniently located in the Weichert Realtors building at 1 Newark St (next to PATH), we can meet you at your convenience.  E-mail us here or call me (Scott Allan) direct at 877-688-7582

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We are all aware of the threat of shadow inventory in the United States.  But does shadow inventory at unprecedented levels lurk in Hoboken?  I’m not so sure and I was never a believer in it from the beginning.  There will be some, but we should have seen more distress out there than we currently have been seeing.

There are currently 367 condos for sale in Hoboken.  In June, 72 condos sold which puts the Rate of Absorption at 5 months.  The rate of absorption is the amount of time in months it would take a certain market to sell out of its current inventory using the previous month’s sales volume.  So if there are 367 homes for sale and 72 sold in June, the current ROA would be about 5 months.  As a reminder, developers and builders typically use a 4-6 month ROA to justify a favorable time for new construction.

As the summer remains warm, buyers will be out in droves.  Lower prices, low rates, increasing confidence are just a few reasons to notice.  We are seeing China and Indian investors surpassing the European and Russian customers in volume purchases.  One reason could be the volatility in the European markets with the debt issues.  That said, these international buyers are recognizing that Manhattan and the urban outskirts are great bargains today.

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Sorry to make this one short, but we are busy today with appointments.  Not a bad thing, but instead of uploading the graphs showing performance, I am going to provide a link to download the printable document.

LINK

If you are looking to buy or sell real estate in Hoboken, don’t you want to use someone that knows the market, analyzes details, and have outperformed most others?  You have come to the right place.  We can put you in the right position in the market to buy efficiently and sell efficiently.  E-mail us here or call Scott at 877-688-7582.

Hoboken real estate

If you read back in our archives, I predicted that the First Time Homebuyer Tax Credit will have the same trickle down effect as Cash For Clunkers did.  Following the Cash For Clunkers incentive, the auto industry tanked.  Well after the First Time Homebuyer Tax Credit, the housing market seemed to take a double dip.  It was a Cortizone Shot to the economy.  As a former athlete, the best I can describe a Cortizone Shot is an injection to a certain area of your body to temporarily kill the pain, but not heal the problem.

However with no crutch or “cortizone shot” in place, the recent high activity in the Hoboken real estate market is indicative of higher confidence, low mortgage rates, and localized job growth.

What sticks out to me the most in recent statistic analysis is the sales price per square foot in Hoboken.  To me, this is the best indicator of what a unit is worth today when comparing prices.  The sales price PSF on Studios and 1′s this year have gone up every month with a high of $497 in May and a 2011 average of $456 PSF.  Your luxury buildings such as Hudson Tea and Maxwell Place are selling 1 Bedrooms for about $560-$580 PSF.  Everything else is selling in the mid to upper $400 PSF range.

The 2 Bedroom condos have created a flatline for 2011 which is nice to see.  It seems that prices have stabilized a bit on the 2 bedrooms.  January thru May PSF for 2 bedroom units were $465, $432, $432, $437, and $438 with an average PSF of $438.

I anticipate that prices will remain around $460 on 1 bedrooms, and $435 for 2 bedroom units.  If you are shopping for condos, calculate a ballpark value from these numbers.  Call us to go over real time numbers so we can give you a fair value on your condo or the one you are looking to buy in real time values.  This is what we are good at.

So let’s take a look at some statistics for May.  Click charts to Enlarge.

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So there you have it.  This is the Hoboken real estate report for the month of May 2011.

If you are a buyer, seller, or investor and are looking to buy or sell in Hoboken, you have come to the right place.  We are backed by unmatched market knowledge, precise analyticals, and can provide you the best Due Diligence for your real estate needs.

Contact us by E-MAIL or call Scott at 877-688-7582

Feel free to comment below and give us your feedback on the Hoboken condo market.  Thanks!  Your support is appreciated!

As for the rest of Downtown Jersey City real estate reporting, inventory remains higher than we’d like to see but condos are selling quickly and the rate of absorption has improved since January.  The downtown sector is second behind Hoboken for the most active urban market in the NY Metro area.  We have fielded a lot of calls for Jersey City recently and that is fueld by the improving job markets, lower priced real estate and low interest rates.

Knowing the average price per square foot on sales is a good indicator to see if your price is realistic on the buying or selling side.  In Hoboken and Jersey City, your higher end amenity waterfront buildings will sell for close to $500 -$600 per square foot.  Your brownstone / off-water units will sell for in the $300′s to low/mid $400′s, but the average is always a good indicator to start.  Downtown Jersey City is currently trading at the following Price Per Square Foot average dollar amounts:

• Studios & 1 Bedrooms – $445
• 2 Bedroom  -                      $431
• 3+ Bedroom -                    $360

So indicative of the price per square foot reference, clearly you are getting more for your money if you are buying a 3+ bedroom unit, however very few of these sell as the most popular sellers are 2 bedroom units, followed by 1′s and studios.

Look for investor and primary home buying attention toward the Montgomery Gardens area.  There is a pending proposal to HUD and private investors to totally redevelop the area, which is the area adjacent to The Beacon.  Redevelopment includes demo and reconstruction of Montgomery Gardens, a new Charter School inside the Beacon gates, and new construction on St. Peters campus and much more.  The motive is to shift the stygma of the area to attract the same urban lifestyle that downtown Jersey City attracts.  This redevelopment plan reminds me of other local successful redevelopment plans where early bird buyers of real estate significantly benefited in equity over the next 5 years as redevelopment commenced and completed.  See more info on this HERE.

Below is a chart showing April 2011 condo statistics and comparison to the 2011 annual average year to date.

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The absorption rate is a bit too high for our liking however we expect this to improve over the course of late Spring and early Summer as pent-up demand buyers continue to have interest in moving.  A health absorption rate is preferrably 6 months, however where Downtown JC is at today, is an improvement from only a year ago.

If you would like to download the entire 2009 – Present statistic sheet complete with graphs and details for Downtown Jersey City, CLICK HERE.

If you are looking to buy or sell real estate we would value an opportunity to work with you or at the very least have an opportunity to interview for the job of representing you.  You will see that our focus is strategy, marketing, and knowledge of the market that is second to none as proven with our tireless reportings on the urban submarkets.  Please call us at 877-688-7582 or e-mail us here.  We look forward to working with you.

The price per square foot of condos sold is also stabilizing. 

• One bedroom condos are currently trading at about $447 per square foot. 
  
• Two Bedroom Condos are currently trading at about $442 per square foot.  
• Three Bedroom + condos are trading for about $439 per square foot.
• Overall, these numbers are down about 12% from the peak.

For those that are looking for a real estate firm that could represent you, look no further than us at NJ Real Estate Guys.  If you look back in our archives, you will see our 2010 and 2011 outlooks.  We predicted that the Hoboken real estate market would drop 1% per month before bottoming out.  If the Hoboken condo market is indeed bouncing along the bottom, then our numbers were spot on.  Short Sales and Shadow Inventory will remain low for the NJ market as less income earners in Hoboken were affected as opposed to other more affordable housing markets.  It has been the more affordable housing markets that have been hit the hardest by the economic downturn.  See West Orange, Passaic, and Clifton.

Below you will see charts and graphs.  Let us know your thoughts on where you think the Hoboken Real Estate and condo market is going.  Indicative of the statistics, we believe that Hoboken condo market will bounce along the bottom until the 4th Quarter of this year, stagnating a bit more and then prime for a Spring 2012 where we expect prices to begin increasing.  Current rental rates are increasing and already creating upward price pressure.  If the market softens anymore, it will be minimal.  Low interest rates will off-set you long term.  Rates will go up.  When?  Who knows, but if the Fed wants to stave off inflation, rates MUST go up.  Coming soon.

The number of condos going beyond attorney review is remaining strong with 75 going under contract in April, nearly doubling January’s pendings and up 25% on February’s numbers.  Spring buying season is in full effect.

If you are looking to buy or sell in Hoboken, please contact us and interview us for the job.  We can assure you that our strategies and capabilities are second to none.  Contact us at 877-688-7582 or E-Mail us here .  We are located right next to the Hoboken Terminal along the riverfront.  Come see us!

Here are some April 2011 statistics:

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Some Charts.  Click To Enlarge:

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If you are looking to

Leading the way in condo sales was Crystal Point.  Crystal Point, the upscale waterfront resort-style building recoreded 33 sales during Q1 of 2011.  The 42 story waterfront condo building is currently 82% sold out of its 269 total units. 

The top 3 sales in Downtown Jersey City were the following:

1. Liberty Terrace – 25 Hudson St.  SHORT SALE.  Unit 909 – 3 bedrooms, 2.5 bathrooms, 1,550 sq. ft.  Sold for $810,000 on 3/14/2011.  Asking price was $850,000. 
2. Liberty Terrace – 25 Hudson St.  Unit 709 – 3 bedrooms, 2 bathrooms – 1,433 sq. ft.  Sold for $815,000 on 3/25/2011.  Asking price at time of offer was $799,000.
3. Wells Fargo Building - 299 Pavonia Ave – Unit 3-2 consisting of  4 Bedroom 3.5 bathrooms – 4,000 sq. ft.  Sold for $1,140,000 on 3/29/2011.  Asking price at time of offer was $1,235,000

Year To Date, 69 condos in downtown Jersey City have sold.  At this point in 2010, 70 condos sold downtown, so the fact that this year is only 1 sale behind last year is a promising sign considering the First Time Homebuyer Tax Credit was in full affect at this time last year.  The Median Sales Price in Downtown Jersey City so far this year is $452,441, up from $433,944 during Q1 of 2010. 

Spring buying season is heating up nicely.  In January 2011, only 5 condos downtown went pending.  In February, 21 went pending.  In March, 46 condos went pending.  We expect this rate of absorption improvement to continue througout 2011 as there are improvements in the labor markets.

Please contact us if you would like us to send you a full analysis of downtown Jersey City condos and the status of the real estate market.  Or you can call us at 877-688-7582.  We offer free home valuations and consultations to assist in your decision to buy or sell a condo in Downtown Jersey City