Hoboken Condo Report – July 2011 – Buyers / Sellers Must Read
What’s up Hobokenites? Nope, not condo inventory! Condo inventory has dropped to its lowest level in over 5 years! It’s funny how many buyers and sellers we are meeting with whose minds have changed about the direction of the market. A year ago, buyers and sellers were still thinking it is a major buyers market. Very few people thought the positive activity would last. Throw a monkey wrench in the lending industry with Wells Fargo shutting down their wholesale lending division, and it STILL didn’t hinder the market….at least not in Hoboken where prices are rising, rents are going wild, Cap Rates are going down, and inventory is not just dwindling… it’s disappearing.
Everyone, please check your economic egos at the door. We are in a seller’s market right now; have been for months. I say it every month in my blog, my Hoboken listings are getting multiple offers with most of them selling for ABOVE listed price. Need to short sale your condo in Hoboken? Many recently have coined me the King of Hoboken Short Sales. I have successfully negotiated 100% of my short sales and have references to prove it. This gives me leverage with mortgage lenders to get short sales processed and approved quickly. Go to my homepage and read the articles and watch my crazy videos on the short sale process.
- The average sales price of a condo sold in Hoboken is currently at its 3rd highest in 4 years.
- Monthly sales volume dropped 5% from June to July, however is the typical traditional trend that this time of year has followed in 4 years. That being said, July 2012 had more sales by far then any July dating back to 2008.
- DABO’s dropped 13% from June to July however there were far more DABO’s in July 2012 then there was in any July dating back to 2007.
- Inventory is DOWN 40% since this time last year. 206 versus 343.
Price Per Square Foot
- Studio & 1 Bedroom: July Average: $518 - 6 Month Average: $490
- Two Bedroom: July Average: $468 - 6 Month Average: $467
- Three + Bedroom: July Average: $459 - 6 Month Average: $459
Below is a Year Over Year Statistics chart outlining the key economic factors when analyzing a local housing market:
|July 2012||July 2011||% Change|
|Avg. Sales Price||$528,883||$490,006||7.4%|
|Absorption Rate (months)||3.02||5.4||45%|
Notice that every statistic has significantly improved YoY. Obviously the most obvious is the Rate of Absorption. A buyer / seller market is identified at 5.5 months, however some say 5 and some say 6. I meet them in the middle. With today’s rate of absorption of 3.02 months, this clearly shows a sellers market. Hoboken has been in a seller’s market all year going back to July 2011. This is why there are multiple offer situations on nearly every good priced condo. Local money and income is back. Domestic and International investors are buying lower Cap Rates for long term upside. A rental I did last year on 12th & Hudson for $1,600 a month just renewed at $2,050. It’s happening and I think it will continue to be active until price vs income ratios subside which I do not forecast for over a year. Once this happens, things will stagnate and sit nicely while the global economy recovers making room for more housing value improvements.
The bottom line here is that it is a great time to buy and a great time to sell. Working with the right agents like my team will assure you that you don’t waste your time. We would value an opportunity to interview for the job of being your agent.
If you are looking for Hoboken NJ Condos for sale give me a call and let’s analyze the situation to get you into or out of the deal as financially beneficial as possible. There is not a single agent in Hoboken who knows the numbers better then my team and I. Call me, Scott Allan at (877) 688-7582 or e-mail me here. Sit with me in my lavish conference room and let’s make some decisions. Looking forward to meeting you.
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