More on this later...
The absorption rate increased to 17.20 weeks, which is firmly in seller's market territory and is up 40.98% from last week and 58.09% from February 2020. Typically 24-32 weeks is considered a balanced market and over 32 weeks is considered a buyer's market.
Inventory is lingering a bit longer, but pending sales are up 13.25% from last month and up 29.55% from February 2020. These pending sales when they close will work to bring the absorption rate back down a bit.
Totals sales are down 22.99% but these are sales that were under contract 45-60 days ago when the market was a but sluggish. This ties in with an increase of 20.51% for days on the market for these sales. Again tying in with the slowdown in the market that we experienced at the end of last year.
1 BR pricing saw a 5.08% increase which was mostly caused by renters becoming homebuyers, many for the first time. 2BR and 3BR markets each saw price declines of over 7% which is indicative of the softness in this market segment that we saw at the end of last year.
Downtown Jersey City
The absorption rate actually dropped 4.08% to 17.61 week and is on par with Hoboken. We don't usually see this and is a good sign of increased activity.
Pending sales increased 11.73% to 181 units, again beating Hoboken. What's important to note is the pending sales are up 77.45% from this time last year. Impressive.
Total transactions did lag behind Hoboken at 56 days vs. Hoboken's 47 days.
1BR units saw a 1.89% decrease, but we still saw many renters in this market turn into buyers.
2BR units increased 5.20% while 3BR units decreased 20.78%, but as usual it's only based on a few sales.
So although the market still seems to be in a bit of a transition, we're seeing a lot more activity in the marketplace. Bidding wars are now coming back and showing activity has increased significantly.
Let's hope for a strong spring market.
Kevin G. Dowd
Broker of Record
100 Washington Street
Hoboken, New Jersey 07030
Cellular: 201.606.5957 | Office: 201.659.8600 x408