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.

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