After a 3 month hiatus, we are back to posting our monthly updates for Hoboken Real Estate. Is this market crazy or what? I’ve heard a few people ask me recently if this is another bubble waiting to burst. After thinking for a month about it, I have to say that I doubt it. For a bubble to burst, you need to have excessive debt. It’s not the only factor that causes a burst, but it’s important to note. Many sales out here are cash. There is debt, but not anywhere near the ratios of the pre-recession days.
Average sale prices of condos in Hoboken is up 12% since this time last year. Price per square foot is rising and investors who argued over whether to knock down and build new a year ago and decided against it are not kicking themselves hard in the ass. I have one client who should pound his fist so hard against his kitchen table because of the millions he lost in not pursuing, yet I have other investors who are raking in strong yields on new development and remodels. Homeowners are enjoying immediate equity and the market is maintaining healthy and sustainable statistics.
Below is a table illustrating some statistic highlights for the Hoboken condo market for May.
|May 2012||May 2013|
|Avg. Sale Price||$519,333||$568,369|
|Avg. Price / SF||$474||$493|
|Absorption Rate (months supply)||2.85||3.28|
If anyone remembers back to last summer, nobody would have fathomed that the following year would perform quite like 2012. As the numbers clearly show, activity and volume is sustained and FORTUNATELY there is a little bit of a bump in inventory which was desperately needed in Hoboken. Prices are continuing to go up and that trend will likely continue well into 2014 as demand currently outpaces the supply.
The Hoboken real estate market is being driven by homeowners and investors. We are still seeing endless interest from the foreign markets, specifically Canada, Australia, and Germany. India is still hanging in there as is China, but Canada is the big man on campus right now.
If you are looking to buy or sell a home in Hoboken, we would value an opportunity to represent you in this market that we research tirelessly month in and month out. We are the area’s most knowlegable agents. Give us 1% of your trust…We’ll earn the rest.