Summary Report Q3, 2009
The first two months of the Third Quarter in 2009 has continued to present both opportunity and reality for Hoboken Condo buyers and sellers. In this constantly changing real estate landscape, realtors are playing a critical role in serving both buyers and sellers to get properties closed. The big picture paints a bleak picture for sellers not willing to accept the new world order. Sales on condos are down twenty three percent (23%) from the same period totals in 2008 and the average sales price is down over seven percent (7.2%), a decline of 1% from last quarter’s measurement.
Yet, the bright spot of the summer market seems to be that the market volume continues to rebound. One hundred twenty six condos sold in July and August, that’s only two fewer than the total for the second quarter. A look inside the number of sales shows a shift to more moderately priced homes. 61% of sales were under $500k and there were only ten sales greater than $700k with none over $900k.
The operative word for Hoboken buyers in Q3 is Hurry . The total number of properties on the market has fallen to roughly 500 on a given day, down from a figure almost reached 600 in June. Buyers are benefiting from a decline in prices from a year ago, low interest rates, and tax incentives.
National media reports focusing on housing market gains have little to do with the local economy. Rather the lower than expected job losses in the region have helped stabilize prices. While there are deals to be found, sellers are not giving the property away at fire-sale prices. More likely, many sellers could not afford to discount because of the reduced equity levels in their properties and a short sale was not an option. This has led to some sellers taking a wait and see approach or renting their condos out. The rents often don’t cover the monthly costs but losing a little each month is a more appealing option than losing it all at one time. The first week after Labor Day will be a better indicator if sellers were waiting for the fall market to list or inventories are truly shrinking.
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