Metro NJ Summary: In 2017 the average sales prices and average price per square foot of condos in Hoboken and Downtown Jersey City increased 5.8 to 9.7%. Also last year the average sales price of a Jersey City townhome increased 11.4% while the average sales price of a Hoboken townhome declined 12.1% for the first time since 2009 due to a surge of high-end sales in 2016 with 11 sales over $2.5M and only 4 sales above $2.5M in 2017. The increase in availability of large condos in Hoboken provided an alternative option for typical townhome buyers with 30.5% more $1M+ 3+ bedroom sales in 2017 vs 2016 (94 vs 72). Total residential market sales volume for both areas combined was down $741m or 3.4% compared to the 2nd half of 2016 down $767M due to a 35% decrease in Hoboken townhome sales volume and a 12.5% decrease in Jersey City condo sales volume. Across the board supply was a limiting factor to sales and helped properties sell faster and pushed prices with only 1.8 – 2.7 months of supply as opposed to a normal 6 month supply.
Condo Market Summary: Over the 2nd half of 2017 average Hoboken condo prices increased 4.3% to $812k and the average price per SF increased 5% to 735 compared to the 2nd half of 2016. Properties sold at a slightly better pace, going into contract after an average of 27 vs 31 days on the market. The volume of new condo listings was up 18% and there were 3.2% more contracts written and 1.1% more closings compared to the 2nd half of 2016. Downtown Jersey City average sales prices increased 7.1 % to $782k and the average price per SF increased 5% to 784 . The volume of closings in Jersey City was down 18.3%, while the number of new listings increased 14.7% and the number of contracts written decreased 6.4%. The average time on the market decreased 29.9% from 39 to 27 days. Over the last 10 years, Hoboken condo average sales prices are up 52% and in Jersey City condo average sale prices are up 56%
Townhome Market Summary: Over the 2nd half of 2017, the townhome market in Hoboken decreased in transaction volume 23.7% with 29 sales closings vs 38 sales in the same period of 2016. Although the 2nd half of 2017 was sluggish, the 1st half of the year was quite active, consequently there were 5% more sales in 2017 compared to 2016. For the 2nd half of 2017, the average sales price of a townhome in Hoboken was down 14.7% to $1.701M compared to the 2nd half of 2016 and Hoboken townhomes spent an average of 48 days on the market vs 50 days on the market a year ago. The average Jersey City townhome sales price increased 11.6% in the 2nd half of 2017 and spent an average of 33 days on the market while sales volume increased 23.7% with 47 closings vs 33 sales in the 2nd half of 2016. Due to the relatively low volume of sales within a year the average townhome prices tend to move inconsistently but since 2008 there have been steady gains in value with Hoboken townhome average sale prices up 51% and Jersey City townhome average sales prices up an average of 84%.
Looking Ahead: The national average 30-year fixed mortgage rate is 4.57%, up from 4.04% in late November and most economists agree that rates will continue to rise during 2018. Rates are currently at the highest seen in the last 4 years but still low historically as the 30-year rate actually eclipsed 6.5% in 2008. In the first half of 2018 we expect to see an increase of condo sales activity and continued pricing increases in our area due to low unemployment, relatively healthy stock market, a constrained supply and strong demand throughout the spring buying/selling season. Due to the Jersey City property tax revaluation, the first since 1988, we expect to see an increase in Jersey City townhome sales activity but strong demand for these properties should outweigh any decreases in pricing. With a significant amount of new construction development underway, sales inventory should continue to remain low as the majority of these new buildings are for lease and not for-sale condominiums. We expect this ultra-low inventory will continue to push prices up. Properties in our region continue to trade at significant discounts to Brooklyn where condo prices are 63-69% higher and townhome prices are 48-83% higher than Hoboken and Downtown Jersey City, providing a tremendous value option to anyone looking to live within close proximity to Manhattan.