It's end of year report time!
The market cooled a bit this year, but we still posted price increases in out 5 out of 11 pricing segments.
Hoboken 1BR and 2BR saw slight increases/decreases and Hoboken 3BR saw big gains. Newport 1BR saw slight increases and 3BR saw big gains. Newport 2BR saw a slight decrease and downtown JC saw decreases in all categories.
Read below the chart for my full commentary.
Hoboken: 14.10 weeks, +22.77%
Downtown Jersey City: 25.84 weeks, +141.16%
Properties lingered on the market a bit longer again this year. We're coming from a market where the absorption rate was 8.29 weeks for Hoboken in 2015. It's more normalized at the current rates and still in seller's market territory for Hoboken and moving to a more neutral market for downtown Jersey City.
Hoboken: 166.08, -12.82%
Downtown Jersey City: 131.85, -2.33%
As the market starts to normalize, it is expected that pending sales will decrease slightly.
Hoboken: 960, 7.62%
Downtown Jersey City: 610, -10.03%
Total transactions increased this year for Hoboken which was surprised me because I still felt that I was struggling to find properties to show buyers. Downtown Jersey City sales decreased by 10.03%, part of which was caused by the tax revaluation which made a lot of buyers pause while they waited to see how the changes would alter property values.
Price Per Square Foot-Hoboken
Studio: $819.50/sq.ft., +.2.85%
1BR: $723.97/sq.ft., +1.35%
2BR: $723.62/sq.ft., -2.25%
3BR: $763.47/sq.ft., +13.99%
The big story this year for Hoboken is the 3BR market which continues to show strong returns as more and more families decide to stay in Hoboken for the medium and long-term. 2BR condos dipped 2.25% which surprised me because this market segment seemed very strong.
Price Per Square Foot-Newport
1BR: $914.00/sq.ft., +4.65%
2BR: $812.01/sq.ft., -1.08%
3BR: $804.87/sq.ft., +11.47%
The Newport market continues to outpace Hoboken which most buyers don't believe when I tell them. I was impressed to see 1BR at $914.00/sq. ft. Impressive. It's interesting to see that 3BR in Newport also have the strongest performance for the year.
Price Per Square Foot-Downtown Jersey City
1BR: $733.77/sq.ft., -5.47%
2BR: $739.46/sq. ft., -.47%
3BR: $728.43/sq.ft., -6.31%
Now the real story this year is again downtown Jersey City. The area went from posting gains in all segments in 2017 to posting losses in all segments this year.
I think the tax revaluation played a major role in the downtown Jersey City market this year. Many of the high rises in the Newport area are under long-term tax abatements which limits the amount their taxes can increase.
Take a moment to review the numbers over the last 9 years on the chart above. It's interesting to see how pricing has changed over the years.
Kevin G. Dowd
The Turoff Team
100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 x408