Hoboken Condo Market: Market Summary and Forecast

Market Summary and Forecast for the Hudson County, Specifically Hoboken, Condo Market:

The following forecast is based upon evaluating the statistical data and traffic patterns of properties both in our inventory and throughout Hoboken and Hudson County Markets. In addition, we’ve informally surveyed and collected supporting data in our day to day course of business with cooperating agents, vendors, wholesalers and retail customers.

Influencing Factors in the Hoboken Market
In my professional opinion, I feel the Hoboken Condo market is going to continue to trend downward over the next two quarters between 3-5% over all. This number may increase as a result of the FHA policy changes on Oct 1^st 2009, Truth and Lending Policy July 30^th 2009, banks and financial institutions reluctance to accept ‘short sales and or a Deed-in-Lieu’ and the staggering 700,000 foreclosures being held off the market by banks and financial institutions. It should be noted that many of the larger financial institutions have been following the newly revised Truth and Lending Policy guidelines for over six months now. Though we are not exactly sure how the changes mentioned above will effect the market over-all, our informal research and the opinions of market professionals anticipate “growing pains” at best.

The Market’s Future
We realize the real estate market isn’t going to zero…In my professional opinion, we see the Hudson County and Hoboken real estate market stabilizing in Q1 and Q2 of 2010 and begin to show moderate signs of recovery in Q1 of 2011. One determining factor in making this analysis is the following: we estimate more than 40% of the condo buyers in Hoboken work in the financial markets. Contrary to other real estate markets, we typically see a moderate increase in buyer traffic beginning in Q3 and Q4, year after year. In short, these same buyers are basing their acquisitions less on emotions or the needs of a growing family and more on year-end and/or performance bonuses from their jobs. Our estimated recovery time lines are in direct correlation with the predictions of economic and Wall Street experts. As the stock and equities markets recover and trading activity increases so will the young professionals buying power with the renewal of year-end and/or compensation bonuses.

In closing, we truly honor and appreciate your confidence in Weichert Realtors and The Shallis Group. We are committed to continuing to out-perform both the market average and similar competing properties with higher execution prices. Please call Sean TShallis directly at 201-427-1032 for a personal consultation.