Since the start of 2008, the typical measures of market activity in the Hoboken condo market have shown signs of a slow down but they have been very slight. The average sales price of a Hoboken condo in March was $538,722, down for the third month in a row. Price per square foot, however, was $522, up from last month but not quite back to January's level. The average list price fell for three consecutive months. That number does not reflect prices changes. It is the list price at the time the property actually sold. There may have been price reductions from the original list price on many properties as sellers realize they can no longer count on a 15 to 25% increase from the most recent sales prices of similar units in their buildings. Here is the chart:
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Location has been, and always will be, one of the most important factors in any real estate deal. From the time Hoboken was settled, the place to be was on the waterfront. That hasn't changed. If you're buying a condo in a marginal part of Hoboken, no matter how nice the particular unit, you're still getting marginal property. In an uncertain economic environment, buying a Hoboken condo in the most desirable part of town, Hudson Street, Bloomfield Street, Garden Streets, Hudson Tea or the Shipyard, is your best hedge against a potential downturn. So with all the inventory currently on the market why are you even considering Jackson or Harrison?
Buyers get all hung up over a few thousand dollars. They will be negotiating with a seller on a half-million dollar condo and walk-away from the place of their dreams because they are a few thousand dollars apart. Even for $3,000, we're talking about less than 1% of the purchase price. Moreover, when you add that $3,000 onto a 30 year mortgage and amortize it, the difference in the monthly payment is negligible.
Many buyers start the house hunt without ever speaking with a financial advisor, bank or mortgage lender. They have no real idea of their budget, how much they will need to put down in cash, or how large a mortgage they can manage. They either look at condos that don't meet their needs, not realizing that they could afford to spend more or they look at condos beyond their means and then are dissatisfied when they take a step down to those within their budget. Know your numbers before you start looking!
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If so, you better keep reading. Hoboken has very few coops. Most units in Hoboken are condos. A condo building is run by the condo association. The condo association is made up of the unit owners. Each unit owner has a vote. Sometimes, that vote is proportional in relation to the size of the unit owned. Other times, it is 1 vote per unit. So what's the problem with that, you ask?
Hoboken has many older 3 and 4 story homes that have been converted into 3 and 4 unit condos. Let's say you're about to purchase a unit in one of these 3 unit buildings. You would own 24% of the total square footage of the building, your upstairs neighbor owns 24% and the family downstairs in the duplex has 52% of the total. So your vote is worth 24%, the upstairs vote is worth 24% and guess who controls the building? Or the same owner owns two floors and now the third floor unit is for sale. Each condo unit gets one vote. Again, your soon to be neighbor makes all the decisions.
Living in a condo building requires cooperation among unit owners. It also requires decisions to be made that effect everyone. Think about who decides how much the reserve fund should be, whether special assessments will be imposed or whether maintenance fees ought to be increased, and if pets are allowed. When one unit owner has a controlling interest, all these decisions can be made by that owner. What if you prefer to live in a well maintained, clean building but your neighbor could care less? If they decide how the condo fees are spent they may not be willing to repair the roof, paint the common areas, clean the hallways or install new lightings. Owning property requires maintenance and upkeep. Improving property costs money. If you're not on the same page as the neighbor with the controlling vote, you have no recourse except to make improvements and repairs at your own expense. Or you may have a really difficult time selling when your building looks like a money pit.
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Studio & One Bedroom Condos:
Total Active: 148 Under Contract (Dabo'd): 60
Sold (Deals Closed) This Week: 8 Average Sold Price: $436,873
New Listings This Week: 24
Two Bedroom Condos:
Total Active: 249 Under Contract:98
Sold: 5 Average Sold Price: $664,200
New Listings:60
Three Bedroom Condos or Bigger
Total Active: 44 Under Contract:10
Sold: 0
New Listings:2
One Family Houses
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Every Saturday and Sunday morning, you can watch as Hoboken realtors scurry around town, putting out sandwich board signs on street corners all over Hoboken to advertise their open houses. These signs are supposed to direct people to the open house but there is no evidence that this is at all effective. Worse, when it is windy, the signs often end up in the street instead of on the corner. Cars drive over them, people have to walk around them, and to say the least, they can be very unsightly.
According to most realtors, these signs are a necessary part of doing business. Yet in today's internet world, that's just nonsense. All of the open house information is readily found on-line at sights like craigslist, realtor.com and more, and it's typically in the Hoboken Reporter classified section. For anyone who really cares, finding where the open houses are being held is pretty simple. The one thing the signs seem to do is make the seller feel all warm and fuzzy. So as long as one agency does it, the sellers will pressure every agent to do it. How do we get it to stop? Don't let anyone do it! Or at leatst make them do it in a better way.
Why not have the city install a central kiosk or two, in high traffic locations that don't block the sidewalk, where each agency can rent ad space? In fact, the city could use the revenue improve the streetscape of Hoboken. Let City Hall fill some pot holes or plant some trees. The City has an interest in keeping the streets clear for pedestrians and ensuring the safety of its drivers. Keeping these signs out of the way and out of the street and having them placed in designated areas would surely further that purpose. It would also make Hoboken look a whole lot nicer.
Maybe even a little bit Parisian?
The Turoff Realty Team provides service beyond the ordinary. I'm a JD & MBA and Howard's a CPA w/ 25+ yrs Wall St. As Realtors, you can trust us to handle all your RE needs. hobokensbesthomes.com
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