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

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