Monday, November 9, 2009

Should I Buy Now - Part II

You are making some progress towards making a decision about purchasing a one-bedroom in Hoboken. What are some of your must-haves? Do you really need an elevator? Is a certain area of town important to you because of access to public transportation – PATH in the south, buses – midtown Manhattan in the north? Or, do you have some flexibility and looking for the most value for your money. Let’s take a deeper dive into one bedrooms that have sold in the last few years, and then evaluate what is on the market today.

You really want an elevator building

There are a few marked differences between sales of elevator versus non-elevator units in the Hoboken market.

  • Geography – Elevator buildings are almost exclusively located in the northeast and southwest sections of Hoboken.
  • Price Point – In the northeast, buyers paid 46% (~$135k) more on average for a one bedroom with an elevator in 2009. In 2008, that premium was 35%, off a high of 60% in 2007. In the southwest, the price premium was 63% (~$227k) in 2009, versus 38% in 2008. Currently average prices for active properties are about $490k in both the northeast and southwest, but southeast properties have about 5% more square feet on average. Any price advantage in the southwest has been eliminated by the market.
  • Price Trends – In the southwest, average prices for one bedroom elevator buildings are actually INCREASING year-over-year for the last four years, and 2009 is no exception. The northeast, however, has seen some significant softness, but prices are beginning to increase.
  • DOM (days on market) – 20% fewer days on market in the northeast, at 47 DOM, and 50% lower at 39 DOM in the southwest. That potentially makes the bidding more competitive, but also bodes well for resale.

One Bedrooms without Elevators

  • Geography – There is inventory all over Hoboken.
  • Price Point – The average price for three bedrooms without elevators across Hoboken is about $350k, regardless of quadrant.
  • Price Trends – The biggest price drop has been in the northwest, but all one bedrooms in Hoboken are showing a decline in 2009.
  • DOM (days on market) – Properties on the west side of town are moving at least 25% faster than properties on the east side of town. Interestingly as well, the southwest has the most inventory. This area has seen tremendous renovation and rebirth, and the newer properties seem to be drawing some shrewd buyers who feel they are getting more bang for their buck. The southwest may be an area to hunt for some real value in one bedrooms.

In summary, if you are looking for a one bedroom in Hoboken, with or without an elevator, all neighbors, on average, are currently priced the same realtive to each other. So now may be the time to make the pruchase in what you previously perceived as a premium neighborhood, or a chance to really focus on the specific amenities that are important to you – such as outdoor space, washer/dryer, parking, etc. – to find the right home. Take some time to look through some of the current active listings on the market as of Sunday, November 08, 2009 , or call us and we will be happy to create a custom house tour so that you can see what is the on the market for yourself.

With & Without Elevators

Thursday, November 5, 2009

Is now the time for you to buy?

Are you a first time buyer, looking for a second property or a trade-up? Can you take advantage of the extended tax credit to finally close the deal? The current tax credit, which expires November 30th, 2009, offers $8,000 in tax credit – which is a dollar-for-dollar reduction in your tax liability – for first time buyers. However, currently there is an income limit of $75,000 for singles and $125,000 for couples. (See on the Housing Tax Credit Extension.) It is likely that this credit will be extended to April, 2009, with higher income limits of $125,000 for singles and $225,000 for couples. This $8,000 can be used for improvements to your home, or even to effectively reduce the monthly cost of ownership by $667 per month for your first year. That’s a nice incentive to help you establish your own homestead. And the extension may well include a $6,500 credit for buyers who have been in their current home for over 5 years, so those of you looking to trade-up, well, now may be the time.
Over the coming weeks, we will take a look at the history of property sales in several Hoboken neighborhoods to understand the various sale prices and days on market trends for the last several years. Then we will look at existing inventory to help you “hunt” to find the right home for you.

Looking for a one bedroom?

One indicator of whether the market values a property at its listed price is the number of days on market. It is a gauge of how robust the market is, so let’s take a look at the trends by quadrant to see which has the most movement. As you can see, 2007 had the lowest average days on market for one bedroom sales in Hoboken. Overall in the 2009 tend seems to indicate properties are moving faster, but the northwest quadrant has the fastest moving one bedrooms in town this year, followed by the southwest quadrant. What could be driving this trend?

It has to be the price....

Not to be too obvious, but so far this year, the northwest condominiums are showing an 18% percent price decline over one bedrooms sold there last year. That is more than double that of any other area, so the sellers here are motivated to move and that is reflected in the price. That’s a real motivation to buyers, and if you look carefully, you may be able to find the right home for you.

So overall, what will a one bedroom in Hoboken cost you today? Here is a one bedroom listing that is on the market today. Click for One Bedroom Listing

Next week, we will look at how various amenities impact the price by quadrant and highlight a couple of specific units in each area.

If you have any immediate needs, please call us – we are happy to help you in your search for your new home.