Wednesday, February 24, 2021

January 2021 Real Estate Update | Hoboken/Downtown Jersey City


January is off to a very transitional start and the numbers don't tell the complete story.  

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.

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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1 comment:

Brian Safran said...
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