September 2020 Real Estate Report
The pace of sales slowed a bit this month, with the absorption rate increasing 37.17% to 26.31 weeks. Pending sales dropped 2.17% while total sales dropped 21.35% to 70 sales. Active listings was at 425 units. These are levels that we haven't seen in a very long time.
The increase in inventory is a combination of pent up sales from the few months when we were shut down coupled with an acceleration of sellers moving out of the area.
Increasing inventory coupled with decreased sales could start to push the market into buyer's market territory.
Even though pending sales are still strong, it seems like there's been a bit of a slowdown in the marketplace.
Pricing remained relatively flat, with 1BR and 2BR units both increasing by just .05% and 3BR units increasing a strong 17.70%. The strength of the 3BR market has continued for some time as more and more families stay for the long-term in Hoboken.
Downtown Jersey City
The pace of sales also slowed down in downtown Jersey City, with the absorption rate increasing by 24.74% to 33.78 weeks as inventory continues to increase. Active listings climbed to 382 units. These are levels that we haven't seen in a very long time.
Pending sales actually increased 9.86% to 156 units while total transactions dropped 18.33% to 49 units.
What's also interesting to note is that the days on the market decreased 36.96% to 29 days, which is impressive.
Pricing actually increased for 1BR and 2BR while 3BR pricing dipped. There aren't that many 3BR sales in the downtown area, so pricing will tend to be a bit more volatile.
Over the last few weeks it does seem like the market is going through some sort of change. The fundamentals are still strong, but at the moment activity has slowed in the marketplace for some reason.
With people working from home for the foreseeable future, the proximity to the PATH isn't playing as much of a roll as it has in the past. This is a very short-sighted view in my opinion. New York City will always be a big draw for buyers once we move to a post-Covid economy.
Kevin G. Dowd
Broker of Record
100 Washington Street
Hoboken, New Jersey 07030
Mobile: 201.606.5957 | Office: 201.659.8600