It's end of year report time!
I'm happy to report that we had another amazing year.
Pricing decreased in 2017 in only 3 out of 10 pricing categories that I cover. This was fueled by an overall increase in demand coupled with fewer units listed for sale in both Hoboken and downtown Jersey City.
Read below the chart for my full commentary.
Absorption Rate
Hoboken: 11.49 weeks, +25.11%
Downtown Jersey City: 10.72 weeks, +3.53%
For the second year in a row, properties lingered on the market a bit longer. Normally this would be a cause for concern, but the decrease in the overall number of properties listed for sale has helped to bolster pricing to record levels in most categories.
Pending Sales
Hoboken: 190.5, +2.26%
Downtown Jersey City, 135, -16.50%
Pending sales increased in Hoboken which is surprising given the limited inventory. Pending sales did decrease in downtown Jersey City last year, but there were many sales in very large buildings that weren't listed on the local MLS. I can only go by the data that I can access.
Total Transactions
Hoboken: 892, -4.80%
Downtown Jersey City: 678, -12.29%
As was the case last year, the lack of inventory in Hoboken and downtown Jersey City is the main reason for a reduction in total transactions.
Price Per Square Foot-Hoboken
Studio: $796.79/sq.ft., +.7.31%
1BR: $714.32/sq.ft., +2.36%
2BR: $740.29/sq.ft., +10.28%
3BR: $669.75/sq.ft., -5.78%
While 3BR led the way for 2016, they were the slowest performing category for Hoboken in 2017. 2BR showed strong growth with a 10.28% increase. We've
Price Per Square Foot-Newport
1BR: $873.38/sq.ft., -3.61%
2BR: $820.91/sq.ft., +2.97%
3BR: $722.03/sq.ft., -3.26%
2BR units led the Newport market again for 2017, but with a gain of just 2.97%. It's a bit off of the 17.01% increase we saw last year. Last year was a bit of anomaly with pricing jumping so much. 2BR units were a little undervalued last year which is why we saw such a large increase.
It's shocking that 1BR pricing didn't increase given the demand of Newport 1BR units.
3BR unit also dropped, but I don't find a lot of the 3BR floor plans very appealing in the Newport area. It seems sometimes like they're trying to cram a 3BR unit into an area that would be better suited for a 2BR unit
Price Per Square Foot-Downtown Jersey City
1BR: $776.21/sq.ft., +8.31%
2BR: $742.98/sq. ft., +8.12%
3BR: $777.51/sq.ft., +24.05%
Now the real story this year is again downtown Jersey City. Every market segment posted tremendous gains.
3BR growth was once again off the charts with a 24.05% increase for 2017, which follows up a 22.59% increase last year. Families are moving to downtown Jersey City in droves for it's beautiful parks, lovely streets, small town charm and proximity to New York City. It has more of a Brooklyn/hipster vibe than Hoboken and many people like that.
Kevin G. Dowd
Broker/Salesperson
The Turoff Team
100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201-606-5957 | Office: 201-659-8600 x408
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