Tuesday, September 3, 2013

July - August (Summer) 2013 Review - Hoboken Real Estate Review - Where is the Market Going?

The Hoboken's July - August (Summer) Review is here. There were 223 closings during July- August period 2013. This includes condos and 1-4 families sales. 

I like to look at price per square foot by contract date. The price per square foot by contract date is a more accurate depiction of pricing because it's the contract date where the buyer and the seller have come together and agreed on a price of a specific property. It takes 4 to 8 weeks to close depending on whether it's a cash deal and how unique the property is. That is, a 1-4 family, generally, takes more due diligence than a condo.

There are a variety of reasons why a closing may take longer than this. One typical reason why the time from contract to closing takes longer than this 6-8 week period is because the unit goes under contract in pre-construction. A property sold in pre-construction can remain under contract for 6-8 months or even more. Because the decision point to buy and the agreed upon price were made so far in advance of the closing, the price is not necessarily a reflection of pricing at that time of the closing.

As shown in above chart, The price per square foot for a 3 bedroom condo was $576 in the month of July and shown sightly decrease in august $568. Average Price per square foot for a 3 bedroom condo increased by $16 from Q2, which shows the upward trend in property prices. Prices were low in June at $546 but highly appreciated in July at $576. The average 2 bedroom over the period was 1,313 square feet sold at the average Price Per Square Foot (PPSQFT) of $531 which is higher by $3 from last quarter. In July, the average 2 bedroom went for $626,969 and $689,866 in August was highest in the given period.

Although small numbers, the 3 bedroom category is in high demand among the buyers.  I have several clients looking for 3 bedrooms and I can tell you it's very difficult.  Listings are going at highest and best within days of hitting the market like no other segment.  There just is not enough 3 bedrooms as more and more people want to stay in this area instead of taking on a long commute from the burbs. 

I also want to point out, that the durations shown here is the contract date minus the listing date, however, most agents put in the date that attorney review closes, not the date the initial contract is signed by both parties.  That is, these durations are about 7 days to 2 weeks longer than when the offer is accepted by the sellers.  In NJ, we have attorney review.  After an offer is accepted by the seller, ie he countersigns the contract, the deal goes into attorney review.  It can take the attorneys 7 days to 2 weeks to review the contract and complete an addendum signed by both the seller and the buyer.  It's at this point the deal is binding for both parties and it is this date that goes in the MLS.  I am pointing this out because even these durations are deceptively long in relation to how quickly listings are no longer available.  Prospects often don't want to see properties where an offer was already accepted and very often, if the property is Tenant occupied, the owner stops the showings.

Duration for 2 bedrooms went from 24 days to 34 days during July - August period. The duration for 1 bedrooms went from 24 to 25 days.  

Inventory steadily went down throughout the Summer.  We started this quarter at 317 total units for sale in Hoboken now gone down to 228

Sales of properties was really good during summer in contrast of last few years. July recorded 114 units sold and august at 109 properties, which are unexpected and really great figures.

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

All and all the market needs listings.  If you are ready to move or you have waited for a good time to list, this is it. 

Here below is the unit sold chart during July - August (summer) period. 

114  properties were sold in July and 109 properties in August. The number also including properties other than condos/coops sold during this period. 

All and all the market still needs listings.  If you are ready to move and you have waiting for a good time to list, this is it. 
Stay tuned for JC results ......

Information Provided by Donna Antonucci
Prudential Castle Point Realty