The Hoboken Condo sales numbers are in for February 2018! The market continues to favor sellers as properties with the features and finishes that buyers desire are moving quickly and often at or above asking when the property is priced appropriately; however, we’re beginning to see some small movement towards a more balanced market. Of note, condo inventory is up more than 50% over last year (136 now vs. 90 at this time last year). Perhaps the most interesting takeaway is that we’re starting to see some fairly solid evidence of flattening and a small (3%-4%) correction. More on that in the video blog and later in the post.
Below are the sales volume and average price and size statistics:
*Note: “Premium Doorman Buildings” are doorman buildings with a high-level of amenities and an ideal (usually waterfront) location, often with city views.
In my opinion, what’s most telling is the consistent trend that we’re seeing in the $/sqft of the typical (median) Hoboken Condo. If we look at the 3 month and 6 month rolling averages, we can smooth out each individual month and get a clearer trend. When the 3 month average is higher than the 6 month average, it’s a leading indicator that the market $/ft is trending up, conversely, when the 6 month rolling is higher than the 3, it’s a leading indicator that the market $/ft is trending down. Each of the last 6 months, the 3 month rolling average has been lower than the 6 month rolling average. Keep in mind that the range of $/ft depicted in the chart below is only ~4%, but the trend is clear!
The median $/ft is down 3-4%. Despite having clear evidence to the contrary, many agents tout continued “rocket-ship” appreciation. Just look at the language that was in a recent email I received from an agent trying to prospect for sellers:
“As demand continues to increase, while inventory steadily decreases, you have the perfect conditions for a seller’s market.”
Aside from being objectively false, this type of language can lead a seller to look at recent comps and add 10%-15% because they’re under the impression that they’re in a red-hot market, with abundant demand and limited supply – it’s an effective narrative for an Agent to convince a seller it’s time to sell, but it leads to trouble when they actually go to sell the condo. The truth is inventory is up and the market is flat – it’s still a good market to be a seller, but there are signs of a pivot to a more balanced state. If you look at the market you’ll find some overly ambitious listings in $850-$900+/ft range without amenities, parking, or any truly compelling features. The Agents who take these listings aren’t doing their Customers any favor, they’re likely to sit on the market and be forced to take price reductions – this approach is ill-advised as stale listings signal to the Buyer that they have the leverage in the negotiation. They’ll end up sitting and they may trade significantly lower than they would have if they were priced within 5% of market value.
Despite some flattening, it’s still a very strong market, if you properly stage and style your condo and list it near what the recent comparable sales justify, you’re likely to get something very close to full asking or even multiple offers over asking. Speaking of styling your condo – when you list with us, professional styling and light staging is included! On top of that, you’ll get professional photos, a virtual tour, MLS listing, open house(s), social media marketing and an article (like the one we paid for when we sold our condo) on Jersey Digs. You’ll have the professional styling and marketing strategy you need to maximize interest in your property + the market data and advice to price your home to get top-dollar! Best of all, you’ll get a rock-bottom commission structure that will save you thousands! Premium service, unbeatable rates – savings without compromise! Thinking of Selling or Buying and want to learn more about how we can save you an average of $10,000 on your next purchase or sale? Let’s chat!