hOMES: Weekly Insight Into Hoboken & Jersey City Real Estate Trends | October 5, 2018

Hoboken & Jersey City Real Estate Trends | October 5, 2018
by Ann Wycherley
Broker Associate, Century 21 Innovative Realty

When the Federal Reserve raised interest rates last week, many buyers and homeowners were left wondering how it would affect them.

Fixed rate mortgages are not directly affected by the reserve hike. Those with adjustable rate mortgages or HELOC’s (home equity lines of credit), may see an increase in monthly payments.  The rate increase will also see an increase in credit card rates, which are already high.

Although the rate hike did not mean that the mortgage interest rate increased overnight, the rates have been steadily climbing. The current rate for a 30-year fixed mortgage is 4.875, compared to 3.9% this time last year. But, in the grand scheme of things, the rates are still historically low. Ten years ago, in October 2008, the rate was 6.2%.

Let’s put that in perspective…

n a loan of $450,000 with today’s rate you will be paying $2,381 per month. A year ago you would have paid $2,123 a difference of $258 per month. But 10 years ago you would have been paying $2,756 which is $375 more than you would pay today.

Prices have softened. We are seeing a slowdown across the board at all price points. But we are not seeing huge price drops—it’s more of a  market correction.

Inventory remains low. One of the reasons for this is sellers do not necessarily want to move and give up their current lower interest rates.  Experts expect rates to rise to 5% by early next year.

So, is now a good time to buy or sell?

The answer of course is yes. If you are a buyer, you should take advantage of the slight softening before the rates go higher. If you are a seller, capture those buyers before rates and other rising costs move your buyer out of your price range.

Here are this week’s numbers:

HOBOKEN:
Studio/ 1-Bedrooms
New Listings:
10 new listings. The average price is $578,595 and the average price per sq/ft is $751.
Sold Properties:
4 properties closed. The average price was $500,000 and the average price per sq/ft was $659.

2-Bedrooms
New Listings:
28 new listings. The average price is $870,853 and the average price per sq/ft is $749.
Sold Properties:
6 properties closed. The average price was $1,206,333 and the average price per sq/ft was $794.

3-Bedrooms
New Listings:
10 new listings. The average price is $1,,475,613 and the average price per sq/ft is $829.
Sold Properties:
2 properties closed. The average price was $1,150,500 and the average price per sq/ft was $775.

4-Bedrooms
New Listings:
3 new listings. The average price is $1,863,000 and the average price per sq/ft is $847.
Sold Properties:
No sold properties.

Single-Family Homes
No new listings.
Sold Listings:
1 three-bedroom home closed for $1,800,000.

DOWNTOWN JERSEY CITY:
Studio/ 1-Bedrooms
New Listings:
14 new listings. The average price is $548,714 the average price per sq/ft is $775.
Sold Properties:
5 properties closed. The average price was $717,333 and the average price per sq/ft was $869.

2-Bedrooms
New Listings:
16 new listings. The average price is $924,354 and the average price per sq/ft is $806.
Sold Properties:
3 properties closed. The average price was $741,667 and the average price per sq/ft was $669.

3-Bedrooms
New Listings:
3 new listings. The average price is $1,074,866 and the average price per sq/ft is $815.
Sold Properties:
1 property closed. The price was $821,000 and the average price per sq/ft was $526.

Single-Family Homes
New Listings:
One new four-bedroom home listed for $1,620,000.
Sold Listings:
One four-bedroom home sold for $1,500,000.

JERSEY CITY HEIGHTS:
Studio/ 1-Bedrooms
New listings:
2 new listings. The average price is $217,000 and the price per sq/ft is $451.
Sold Properties:
3 sold listings. The average price was $220,000 and the average price per sq/ft was $325.

2-Bedrooms
New Listings:
3 new listings. The average price is $475,000 and the average price per sq/ft is $355.
Sold Properties:
2 sold property. The average price was $421,000 and the average price per sq/ft was $451.

3-Bedrooms
New Listings:
No new listings.
Sold Properties:
No sold properties.

Single-Family Homes:
New Listings:
One four bedroom home listed for $479,000 and a three-bedroom listed for $595,000.
Sold Properties:
Three two-bedroom homes sold for $427,000, $408,000 and $560,000.

JOURNAL SQUARE:
Studio/ 1-Bedrooms
New Listings:
1 new listing. The price is $245,000 and the average price per sq/ft is $491.
Sold Properties:
1 sold listing. The price was $150,000 and the price per sq/ft was $299.

2-Bedrooms
New Listings:
5 new listings. The average price is $417,758 and the price pre sq/ft is $377.
Sold properties:
1 sold listing. The price was $399,000 and the price per sq/ft was $486.

3-Bedrooms
New Listings:
No new listings.
Sold Properties:
No sold properties.

Single-Family Homes:
New Listings:
Three new three-bedroom homes listed for $399,000, $450,000 and $579,000.
Sold Properties:
One five-bedroom sold for $879,000.

BERGEN-LAFAYETTE:
New Listings:
No new listings.
Sold Properties:
No sold listings.

(Information provided by Hudson County MLS)

CLICK HERE to learn more about these and other properties…
CLICK HERE to find out how much your property is worth in today’s market…

Mortgage Market in Review:

Mortgage application volume was unchanged last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. But, overall volume was 15 percent lower than a year ago, when interest rates were more than .80%lower. Buyers continue to be faced with slim listings and high prices. It hasn’t helped that the average rate on the 30-year jumbo mortgage hit its highest level since July 2011. Nationally, more sales are occurring on the higher end of the housing market, simply because there is more supply in that range. Sales of low-priced homes are down significantly this year over year.

CLICK HERE for a more detailed analysis from local mortgage broker Michael Mundy.

ALSO OF INTEREST:
7 Things All New Homeowners Should Know (apartmenttherapy.com)

Jersey City Art & Studio Tour

Jimmy Roselli Talk at Hoboken Museum

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Ann Wycherley is an award-winning realtor with over 15 years of solid real estate experience in the Hoboken and Jersey City market.

She has been recognized by the New Jersey Realtors Circle of Excellence for many years, having earned the Gold Level of Excellence 2015-2017, meanwhile awarded Lifetime Membership in the New Jersey Association of Realtors Distinguished Sales Club.

Other accolades include the coveted Centurion Award for the past five years running (2012-2016), which represents the premium level of achievement within the Century 21 organization.