This is the chart that everyone likes. It shows the price per square foot by neighborhood for Hoboken overall. Click on the graph for a larger view.
Notice how prices for studios, one, 2 and 3 bedroom condos are all going up since Q1 2012. The great thing about this graph is it puts the weekly and monthly observations into a broader perspective. The trend is clear that prices are going up. All 5 lines moved upward over the whole of 2012.
Will the trend continue??Notice that the price per square foot for 3 bedrooms is trending down when you look at it from the peak in Q4 2007. After the crash in October 2008, the trend downward was slow but steady supporting that housing prices are sticky. People would rather try and hold on, live in a place a little longer rather than take hard earned savings then sell at a loss. If someone has to take those savings out of stock accounts, it has the double whammy of causing a tax event where they may have to pay capital gains from selling stock.
Keep in mind, the market crashed in October 2008 so volume after that was minimal.
There was another noticeable tick up from Q1 to Q2 2010. Many attribute this to the halo effect of the first time home buyer tax credit. Most 3 bedrooms were beyond the price limit allowed under the program but since the program injected hope into the market with a lift in activity, it seemed to have had an impact on 3 bedrooms as well. In Q4 2010, there is a decline in price per square feet.
Notice that the one and 2 bedrooms largely follow the same downward slope until Q4 2011. There is much more volume in Hoboken in one and 2 bedrooms with 2 bedrooms roughly 2/3 larger than one bedroom sales in terms of units. Q3 2010 was lowest price sale period for 2 bedrooms. In Q1 2011 there was a little increase in prices. Q3 2011 was highest price for 2 bedroom sales. In Q2 again prices per square foot was appreciated similar to the trends of other categories. During Q4 2012 the sales and the trends of the Price are still in the upward direction.
The number of studios and 4 bedroom sales in Hoboken is small in absolute terms so even one purchase with a very high or low price per square foot can swing the average. So, I largely discount this as an indicator.
Provided by Donna Antonucci
Prudential Castle Point Realty