2013 in a word...was great.
Prices were driven dramatically higher by a combination of low inventory and increasing demand.
Read below for a full commentary on this year's performance.
The absorption rate for Hoboken dropped another 29.56% to 11.32 weeks for 2013. Downtown Jersey City dropped 57.60%. Properties are moving even faster than they were in 2012.
Remember, the absorption rate in an average market is 20-24 weeks.
Pending sales for Hoboken are up an impressive 20.27% while downtown Jersey City increased by 8.71%. This ties in with my comments below on total transactions.
The total transactions really tells the overall activity for the area...and it's a great story.
Total transactions for Hoboken were up 36.56% to 1087 deals and downtown Jersey City increased a whopping 53.41% to 764 deals.
We're selling more properties than we have over the last 4 years.
Price Per Square Foot-Hoboken
We had double digit gains for 1, 2 and 3 bedroom units in Hoboken with 1 bedroom units leading the way with a 15.91% gain. 2 bedroom units increased 10.45% and 3 bedroom units increased 14.87%. Studio units increased 14.10%.
Price Per Square Foot-Newport
Newport sales saw the biggest gains in the area with 1 bedroom units increasing 20.50% and 2 bedroom units increasing 18.82%.
Most buyers think that Hoboken in the most expensive market overall, but that's not correct.
Price Per Square Foot-Downtown
The 3 bedroom market, with a 1.04% decrease, is the only market that decreased for 2013 in the area. Otherwise, 1 bedroom units increased by 17.18% and 2 bedroom units increased by 9.75%.
2013 was another year of improvement. Prices are up, transactions are up and inventory is down.
For those of you who are on the fence about buying, prices are only going to continue to rise even more this year. It might also be time to think about selling if you've been waiting for prices to increase.
As the economy continues to stabilize even more this year, you can expect prices to continue to rise.
Prudential Castle Point Realty
626 Washington Street
Hoboken, NJ 07030
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