Tuesday, September 4, 2012

July - August 2012 Hoboken Real Estate Review - Where is the Market Going?


The price per square foot for a 3 bedroom condo went from $565 to $544, July and  august, respectively.  The average 2 bedroom over the period was 1,185 square feet. July the average 2 bedroom went for $473 on PPSQFT basis.  In August the average 2 bedroom went for $519 per square foot.

The 2 bedroom unit continues to dominate in terms of volume:  39 out of 67 total units sold in July and 49 out of 90 in August.  155 total condo units sold in this peroid, 88 were 2 bedrooms comprising 56% of the total volume.  The 2 bedroom continues to be the most sought and versatile size.   A single person can use the extra room.  It's good for room-mates, a couple or even a couple and their first child. 

Overall, prices have ticked up and this is not surprising given low inventory levels.  We started the year at 199 listings in Hoboken to a peak of around 280 now back down to 191.  Low inventory is one of the reasons we are seeing slightly increasing prices.  

There seems to be an optimism in the market that I have not seen since prior to the crash.  I don't know if the US is coming out of this difficult economy but is NY leading the way?  

I have also gotten a sharp increase in the number of people looking for investment properties.  There seems to be more of an alignment between rents and purchase prices coupled with an optimism that we have reached the bottom.  All shapes and sizes are looking for investments - large property owners, individuals who want just one or two units for supplemental income. 

The highest sales volume was recorded in the month of August. There was normal increasing pattern found in the sales of 1 and 2 bedroom condos in this period.

Notice how the duration for 1 and 2 bedrooms dropped from july to August.  3 and 4 bedrooms are too low in terms of units to determine any meaningful trend here but there is enough volume in the one and 2 bedrooms in terms of number of closings.  The duration measures the time the listing went up to the time the unit went under contract.   Duration for 2 bedrooms went from 45 days, to 52 days, July to August.  The duration for 1 bedrooms went from 56 to 48.  This is significant and is a correlate with increasing prices.  Low inventory means relatively more buyers than sellers.  What was available is placed quickly.  Prices pushed upward.

Here is the price per square foot chart that shows how prices have ticked up ever so slightly. 

All and all the market needs listings.  If you are ready to move and you have waiting for a good time to list, this is it.  Call me if you want to list.... 201-240-6832. 

All and all the market needs listings.  If you are ready to move and you have waiting for a good time to list, this is it. 
More to come on this so stay tuned for the Hoboken Real Estate Monitor.com  Summer Review.

Stay tuned for JC results ......

Information Provided by Donna Antonucc
Prudential Castle Point Realty