Hoboken Condo Report – August Statistics – HOT!
Bucking the trend of a late summer slowdown, the Hoboken condo market remains white hot. For a real estate agent like myself, it is so hot that it’s even frustrating. Bottom line is that good units aren’t lasting long and if you are shopping for a new condo with good bones, you better pony up your best offer right off the bat.
As of August 1, there are 168 Hoboken condos for sale in total. This is the lowest inventory levels since we have been documenting inventory statistics in 2009. Looking for a 2 bedroom 2 bath WITH deeded parking for under $500k? Almost non-existent. You need to budget around $550k to increase your chances. Looking for a 2 bed 1 bath with no parking for under $350k? Almost non-existent.
It is important that before you get out and hoof through available inventory, work with a good agent who knows the market, like me The last thing you want to do is waste your time. Some noteable statistics:
- Rate of absorption has dropped to 2 months
- Attention Investors: 3 bedroom condos make up about 13% of available market. Price per square foot is going to skyrocket. Price per square foot has increased 12% in 6 months.
- Rate of Absorption for 1 Bedroom: 2.33 Months
- Rate of Absorption for 2 Bedroom: 1.6 Months
- Rate of Absorption for 3 Bedroom: 2.1 Months
Hoboken Rental Rates are up and staying up. The Northern NJ housing market is improving in certain pockets and Hoboken is one of them. While some neighboring suburban markets continue to stagnate, urban markets have seen a boost due to more and more homeowners preferring urban living. International and domestic investors are buying more in NJ then in outer NYC buroughs due to affordability. We spoke to 3 customers who have come from Bay Ridge and / or Park Slope in the last week and they cannot wait to buy in Hoboken or downtown Jersey City. Their employer is in downtown Manhattan and their trip in is going to be cut in half with more condusive housing options.
Below is our monthly chart with activity and a year over year percentage change analysis.
|August 2012||August 2011||% Change Y/o/Y|
Across the board, everything has improved since a year ago today, and in drastic fashion. The Rate of Absorption change has been most indicative to what is happening in the market and why it remains so hot. It is clear that supply is not keeping up with demand. Overall appreciation has hit 12% since this time last year on average. Combine the appreciation with rate of absorption and you have a very active market with the trajectory arrow pointing upward.
If you are looking to buy or sell in Hoboken, give me a call, Scott Allan at 201-589-1854. We can meet in person to discuss the market and what type of strategy could work best for your situation. I would value an opportunity to apply for the job of being your local real estate agent. You can also e-mail me HERE. See below for some helpful charts related to the Hoboken condo market.
To view Hoboken Condos for sale, be sure to visit our archive page.
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