Monday, January 25, 2021

2020 Year End Update | What A Year It's Been for Real Estate!

 




Well, what a year this has been!

I hope that this post finds you all healthy and safe.

From a real estate perspective, we were poised to have a great 2020 before the pandemic hit.

However, looking back at the numbers we did fairly well overall.

But the numbers don't tell the exact picture of what really happened in the marketplace.

More on that later...

Absorption Rate


Hoboken: 19.15 weeks, +13.34%
Downtown Jersey City: 27.75 weeks, +16.46%

As the market shut down for a few months, it was to be expected that inventory would linger on 
the market a bit longer.  I'm actually surprised at the rather small improvements that were seen in both markets.


Pending Sales 

Hoboken: 153.83, -.43%
Downtown Jersey City: 124.33, -4.36%

Again, there was an expectation that pending sales would plummet as the market came to a screeching halt.  Fortunately, that wasn't the case.


Days on Market

Hoboken: 41, +19.35%
Downtown Jersey City: 42 days, +7.90%

Modest increases here...same story.


Total Yearly Sales

Hoboken: 788, -5.40%
Downtown Jersey City: 536, -7.90%

With 2-3 months of no activity it's expected that overall sales slowed down. 


Hoboken - Price Per Square Foot


Studio: $523.97/sq.ft., -27.25%

1BR: $732.38/sq.ft., +1.75%

2BR: $712.44/sq.ft., +2.04%

3BR: $725.46/sq.ft., -3.36%

It's interesting that 1 and 2BR units eked out small increases, but not surprising at all that 3BR units dropped 3.36%.  Many families that would upgrade to 3BR units and then move to the suburbs decided to go right to the suburbs instead.  This is why the suburbs are in such high demand right now.  There are also many 3BR sellers wondering why they had to go over asking price in the suburbs and they are struggling to find one buyer for their 3BR home here.


Price Per Square Foot-Downtown Jersey City

1BR: $750.58/sq.ft., -2.16%

2BR: $724.22/sq. ft., -7.50%

3BR: $688.41/sq.ft., -4.52%

Following the downward sales trend, downtown Jersey City posted decreases in all market segments this year.  The story is identical to Hoboken, a slower market and 3BR buyers jumped over Jersey City to move to the suburbs.

The other issue that we experienced this year is that many buyers are not attached to being as close to the PATH train as in years past because they're not working in the city for the foreseeable future .  Properties that are farther back in town with outdoor space and parking sold very well this year.

As was the case last year. 2017/2018 price per square foot pricing is now our target to beat...which I know we will.  It's just matter of when it will happen.

Happy Hunting!

Kevin G. Dowd
Broker of Record

100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 x408


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