Monday, May 19, 2014

Price Per Square Foot by Bedroom from Q1 2006 to Q1 2014

This is the chart that everyone likes.  It shows the price per square foot by neighborhood for Hoboken overall. Click on the graph for a larger view.

Notice how prices for one and 2 bedroom condos are all going up since Q1 2012. Trend is same for 1 and 2 bedroom properties. Prices for 3 bedroom were also on upward trend till Q3 2013 and now showing the small decrease in the prices however 3 bedroom category are always been the choice of buyers.The decrease shown here may the result is small number of units which may not represents the category as a whole or may be the result of some other external factors like weather etc. Springs are here and prices can be appreciated with increasing demand in this quarter. The great thing about this graph is it puts the weekly and monthly observations into a broader perspective. The trend is clear that prices are going up. The trend line for studios and 4 bedroom is highly fluctuating due to less inventory of these kind of properties in the market. 

Will the trend continue??
Notice that the price per square foot for 3 bedrooms was trending down when you look at it from the peak in Q4 2007. After the crash in October 2008, the trend downward was slow but steady supporting that housing prices are sticky.  Q3 2013 was again highest for 3 bedroom and now the trend is downward since Q3. People would rather try and hold on, live in a place a little longer rather than take hard earned savings then sell at a loss.  If someone has to take those savings out of stock accounts, it has the double whammy of causing a tax event where they may have to pay capital gains from selling stock.  

Keep in mind, the market crashed in October 2008 so volume after that was minimal.

There was another noticeable tick up from Q1 to Q2 2010. Notice how 2 bedroom reached their all time high in this quarter and it is expected to increase in next quarter as well. If you are looking to sell your property, this is the best time. Check how much your property is worth with our Property Value Estimator tool

Notice that the one and 2 bedrooms largely follow the same upward trend since Q1 2012.  There is much more volume in Hoboken in one and 2 bedrooms with 2 bedrooms roughly 2/3 larger than one bedroom sales in terms of units. Q3 2010 was lowest price sale period for 2 bedrooms. Q1 2014 also maintained the same upward trend from Q1 2012.  Prices were not highly appreciated in this quarter but increasing with a steady growth rate. This is good for investors and sellers.

The number of studios and 4 bedroom sales in Hoboken is small in absolute terms so even one purchase with a very high or low price per square foot can swing the average. So, I largely discount this as an indicator.

Information Provided by Donna Antonucci