“The Trader Joe’s Bump”
We’ve all heard the saying that the three most important rules in Real Estate are location, location, location. In other words, a property’s location is important because it is considered to be the greatest determining factor in a home’s value.
In our area, proximity to public transportation and the waterfront have always been important considerations. But another key element is what surrounds your property—the dilapidated shack next door can be knocked down and replace by luxury, high-end condos or an in-demand amenity (retail, green space) that increase the appeal of the whole block.
This is why two recent announcements have home buyers and sellers excited.
Last week, the city of Hoboken announced that Trader Joe’s has been granted approval for a modified plan to their long-rumored development of the property at 14th & Willow.
Yesterday, Jersey City Mayor Steve Fulop shared the news that Whole Foods formally announced they will be opening a Jersey City store close to the Grove Street PATH station.
Obviously the addition of two popular food stores is good news, but why are people so excited? Because according to industry experts, homes near luxury food stores appreciate faster. A recent study analyzed the values of millions of homes near dozens of Trader Joe’s and Whole Foods to conclude that grocery stores and home values are definitely related. The study found that two years after a Trader Joe’s opened, the median home within a mile of the store had appreciated 10 percentage points more than homes in the city as a whole over the previous year.
As both stores have yet to be completed, the results in our area remain to be seen. But what is clear is that both these stores know their target market. They look for vibrant, urban areas—and with Hoboken and Jersey City, they have certainly hit their mark.
20 new listings this week.
3 new listings. The average price was $604,333 and the average price per sq/ft was $720.
8 properties closed. The average price $554,280 and the average price per sq/ft was $729.
10 new Listings. The average price was $988,990 and the average price per sq/ft was $738.
10 properties closed. The average price was $678,680 and the average price per sq/ft was $669.
5 new listings. The average price was $1,199,900 and the average price per sq/ft was $663.
5 properties closed. The average price was $1,261,200 and the average price per sq/ft was $772.
2 new single-family homes listed—a 4-bedroom for $2,800,000 and a 5-bedroom for $2,995,000.
(Information provided by Hudson County MLS)
Mortgage Market in Review
Mortgage rates have started to rise over the past couple of weeks, as we have seen a decent bounce in the Equity markets. The question now is whether or not this is the start of a continual trend, or if we will see rates come back in like they did the last time this happened. We will need to stay tuned to see what type of guidance the markets give us, as well as the Fed.
CLICK HERE for a more detailed analysis from local mortgage broker Michael Mundy…
ALSO OF INTEREST:
Ann Wycherley is an award-winning realtor with over 15 years of solid real estate experience in the Hoboken market.
She has been recognized by the New Jersey Realtors Circle of Excellence for many years, having earned the Gold Level of Excellence for 2015 and awarded Lifetime Membership in the New Jersey Association of Realtors Distinguished Sales Club.
Other accolades include the coveted Centurion Award for the past four years running (2012-2015), which represents the premium level of achievement within the Century 21 organization.