The average price for Hoboken condos sold in January 2018 topped $900k for the first time ever. Is this a sign of continued appreciation or is there more than meets the eye at play? Watch our video blog or keep reading to find out!
Disclaimer: This market analysis is an opinion of perceived value and/or value categorization by Josh Royko, a licensed Realtor with Elite Realtors of New Jersey and was performed on 2/15/2017. The opinions expressed below is not an appraisal and was not based on a physical inspection of the interior/exterior of the individual properties. The opinions expressed below were developed based on recent comparable sales, current listings, and unless explicitly stated to the contrary in the document below, I do not have an interest in any of the properties for which I have provided an opinion and/or categorization of value.
At first glance, January 2018 looks like a record-breaking month, and in terms of the average price of nearly $905k, it is indeed a record; however, there’s more than meets the eye here. In addition to being an average price record, January 2018 also set an average size record at 1,254 sqft. So what does this mean in terms of how the Hoboken market is doing? Well, perhaps the best way to look at what’s going on is to throw out the outliers, both in terms of single months and high and low prices. We’ll take a look at the 3 and 6 month rolling averages of the median price per square foot over the past 6 months. Rolling averages of a median price/ft over the past 6 months??? I know, it sounds a bit nebulous. What we’re really doing here is looking at the typical property sold (median) and smoothing out the individual months to try to get a recent trend to see where the market is heading:
The trend is clearly negative. Now keep in mind the range of values depicted ($708.98 – $725.68) is only 3.3%, so we’re talking about a relatively small degree of movement that could be explained by the condition of properties sold or simply seasonality. It’s too early to tell; however, the market is clearly not quite as red hot as the $905k average condo price statistic suggests. There’s a lot of concern about the impact of tax reform, and the consensus seems to be that the peak impact will be mid-2019. In the meantime, there’s some evidence of a shift in supply and demand economics in Hoboken, condo inventory is up 67% over January 2017 and despite the increase in supply, sales volume is down 10%. The market is still strong, appropriately priced condos with the features and finishes that buyers want are still moving fast; however, it seems plausible that Hoboken is beginning to shift from a Sellers market to a more balanced state. We’ll have our eye on it!
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