Tuesday, July 16, 2013

Q2 Review - One to 4 Family Sales in Jersey City

There were 17 one to four family sales in downtown Jersey City in Q2 2013.  8 of them sold above the list price.

The inventory is not rising in Jersey City as quickly as it has risen in Hoboken. Hoboken has over 325 active for sale residential listings while downtown JC only has about 180.  That includes condos, coops, single family and multi-family units.   Hoboken currently has 25 out of 325 that are one to 4 family active listings.  That's 7.7% of the market.

In JC, one to 4 family active listings constitute 8.4% of the current available listings.

In Q2 2013, Hoboken only sold 7 one to 4 family units out of 309 total residential 'for sale' listings that closed in the quarter (2.3%), while JC sold 17 out of 191 total residential 'for sale' listings that closed in the quarter - or 8.9%.

Why is downtown JC selling and Hoboken isn't?  It's not a function of inventory.  Hoboken has 25 current active one to 4 family listings while downtown JC only has 16.  What's up with that?

Is there something going on with pricing in Hoboken?  Are sellers and their agents pricing their property to sell or are they over-reaching?  Have those agents done a disservice to their sellers now that interest rates are up over 100 basis points?  Have the Hoboken sellers missed the fast and furious Spring market? An agent does a real disservice to the seller by telling them the listing is worth much more than it is.  I hate to say this but sometimes the agent will tell the seller what they want to hear just to get the listing and hope they can work the seller down to where the list price should be.  This hurts the sellers as it presents them as unreasonable and out of touch.  After the seller has been told they can get "X", its hard to bring them down to earth.

Price reductions do not make the splash in the market as a new listing.  You cannot introduce the same property twice.  Buyers tend to be more educated about the market than sellers.  Think about it.  As a seller you list the property and you don't really begin to learn what someone will give

Stay tuned for more on this....