The problem we're having this month is that inventories have reduced so dramatically that decent properties that are priced well are being snapped up in aggressive bidding wars. I've been involved in three bidding wars on properties in the last 3 weeks.
In all three situations bidding was aggressive, but never pushed over the asking price, because buyers know in the back of their minds that we're still in a buyer's market.
I'm curious to see what happens when bids start to go over asking price.
Many owners have decided to either rent out their properties for a year or three to see if home values increase or not.
Absorption Rate
The absorption rates for Hoboken and downtown Jersey City both increased over October numbers, but are still down when compared to November, 2010.
Again, the data shows that properties are staying on the market for less time in both Hoboken and downtown Jersey City as compared to last year.
A light at the end of the tunnel, perhaps?
Pending Sales
Pending sales for Hoboken were up 13% compared to last month and up 3.86% compared to last year. In downtown Jersey City, pending sales were flat as compared to last month, but have increased 6.53% versus the same time last year.
Another sign that things might be starting to improve?
Transactions
Transactions are down 27.5% for Hoboken and 9.1% for downtown Jersey City because there's no good inventory out there.
I have three buyers that cannot find a property to buy.
Price Per Square Foot-Hoboken
The price per square foot for 1 bedroom condos in Hoboken decreased by 6.9% to $461.92/sq.ft. and is also down 6.4% when compared to November, 2010.
2 bedroom prices increased by just .57% to $461.97/sq.ft. and increased 5.65% from November, 2010.
3 bedroom prices increased 14.25% to $479/sq.ft. and are up 19.5% when compared to November, 2010. There is a lack of affordable 3 bedroom condos in Hoboken.
Price Per Square Foot-Newport
1 bedroom prices in the Newport area increased by 18.61% this month to $529/sq.ft. but are up 14.44% compared to the same period last year.
2 bedroom prices decreased 10.4% to $397/sq.ft. but actually increased 1.6% over the same period last year.
Newport prices have dropped quite a bit from their highs and as a result people are holding onto their properties or are renting them out waiting for prices to rebound.
Price Per Square Foot-Downtown
1 bedroom prices increased 7.7% to $402.75/sq.ft. but are down 3.3% compared to the same period last year.
2 bedroom prices increased by just .01% to $439.90/sq.ft. but are up by 18.57% over last year.
Please click on the link below if you can't see the chart:
Information provided by:
Kevin Dowd
Broker Salesperson
Prudential Castle Point Realty
203 Washington Street
Hoboken, NJ 07030
Cell: 201-606-5957
Email: info@hobokenjerseycity.com
Search Hoboken listings:
www.viewhobokenhomes.com
Search downtown Jersey City listings:
www.alldowntownjerseycityhomes.com
Follow me on Twitter: www.twitter.com/KevinDowdHBJC
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