Is the Hoboken Condo Market Still Declining?
Hoboken condo sales have been on the decline since the real estate market crash. On average Hoboken condo prices are down about 20% from their peak and sales prices in 2010 and early 2011 were trading at 2004/2005 levels.
As a Hoboken real estate agent I've noticed that sales and prices have seemingly started to pick up. With several bidding wars and homes being sold in as little as 3 days, plus investors still active in almost 30% of the market, it is an unmistakable sign that things are looking up.
I spent some time creating this spreadsheet. It shows the Median Sale Price of all Hoboken Condo Sales in 2010 (recorded on the MLS) vs the Median Sale Price of the same in 2011.
Blue 2010 Green 2011
You can see that early 2011 median sale prices were trading below the median sale prices of 2010.
But if you take a close look you'll see that prices rose above 2010 prices in the months of May, September and October, and 4th quarter sales finished strong with November and December prices trading very close to last year.
This is a positive sign that prices are stabilizing. There were no artificial factors in 2011, no home buyer tax credits to jolt sales.
2012 will see an increase in inventory as Hoboken sellers will attempt to sell their homes again after trying the last two years but I suspect buyers will absorb some of that inventory because rent vs owning is finally showing that owning is more beneficial.
There were 683 sales in 2010 compared to 742 sales in 2011. Total number sales are down about 8% yr ov yr however the median sale price for the year is virtually unchanged.
The median sale price for all Hoboken condo sales in 2010 was $455,000 VS
The median sale price for all Hoboken condo sales in 2011 was $450,000
The Hoboken rental market is hot and rental prices have jumped more than 5% year over year. This along with an improving jobs picture, mortgage rates remaining low despite the recent good news (jobs report, tax cut extension and ADP numbers) could lead the way to a stronger year in real estate sales for Hoboken.
I don't expect the rental market to ease in 2012 and would predict that there will be another increase in prices, more modest near 3%.
What do you think? Are you waiting to buy? Or are you taking advantage of these favorable conditions?