Monday, September 10, 2012

How Low Can the Inventory Go?.... How High Much Will Prices Rise?

As of today, there are 181residential listings for sale in Hoboken. That's made up of all home styles, - condos, coops, 1-4 family homes.

169 condos.  12 are One to 4 family homes

84 two bedroom condos range from $299,000 to $2.2MM (49% of the condo market are 2 bedrooms as of today)

Of the condos:
  • 10 are over $1MM all of which are concentrated in 3 super luxury buildings - Tea Building, Maxwell Place and the Residences at the W
  • 12 are between $700K and $999K These are all larger than 1500 square feet which is super large for a 2 bedroom.  Some are also located at the Tea Building.
  • 7 are under $400K

The balance of 53 condos (63% of the 2 bedroom market) are between $400 and $700K - These range in size from 1060 to 1355 square feet which is the most typical range for a 2 bedroom.  We rarely see a 2 bedroom under 1,000 square feet and most of the time 2 bedrooms do not exceed 1300 square feet. There is one in this price range that is 1415 square feet but it's in the SW. 

Why do I find this interesting?  In previous years, we had more like ~550 Active residential for sale listings in Hoboken at this time of year.  This is extremely low.

Listing volume typically hits lows just before the holidays as those considering selling start to contemplate if it's better to wait until January to list rather than list in November or December when many prospects will be distracted with the holidays.  It's not advisable for a property to sit on the market because buyers may wonder what's wrong with it that it didn't sell.  Prospects won't necessarily considering in January that a property listed in November may be sitting on the market just because many buyers put their search on hold while they spend time with their families during the holidays. 

The market is tight.  This will push prices up at least until we get more listings.  If this continues next year will be a year of increasing prices.  

List when competition is low.

Donna Antonucci
Prudential Castle Point Realty