Out like a lamb?

Let me know when spring arrives. Baseball starting in March? Freezing cold temps? Ahh the longing of the spring market. I shouldn't be complaining. There were 20 people that came to my open house yesterday. This is for a $700k+ 2 bedroom no parking condo. Recession? Housing Slump? Not in Hoboken. The Mile Square city is holding its own.

Living in a shoe box? It's time to supersize. Now where did I leave my coffee?

Hoboken Condos 2008

March Prelims
69 under contract
42 Sold
Information deemed reliable but not guaranteed

When The Circus Comes To Town

I went to the greatest show on earth today. It strikes me that some.. no make that nearly all... of the performers are so good at what they do that it looks easy enough to try at home. You get a little bored and start waiting for the tigers. Until you really stop and and look at it... there's a guy balancing another guy on his leg or there's a woman standing on her toes on a guy's shoulder. These aren't even the complex tricks. Try them at home. Make sure you have Aflac first though.

Realtors are the same way. umm. good realtors are the same way. It looks easy. Clients sometimes want refunds because they don't think I've worked hard enough. They don't see the magic because the training and preparation are all done behind the scenes. All they see is a buyer walking through the door giving them an acceptable price in a workable time frame. In fact, there's a whole industry built around getting listings from For Sale By Owners who thought it is as easy as we make it seem.
Back to the tigers.... Seems pretty easy, right. The tigers come in. You crack a whip. The tigers dance around. You crack a whip. The tigers go out. For anybody thinking they should pay the tiger tamer less, remember one thing: There's a cage around those tigers and it ain't for show.


Hoboken Condos 2008
Available 318
Information deemed reliable but not guaranteed

Hello Mortgage Insurance

The Heist is back. Thanks to those eroding credit markets, piggy back mortgages are diappearing faster than Spitzer '12 bumper stickers. Welcome back Mortage Insurance. Banks avoid risk. Customers pay more. Mortage Insurance companies make money.

Where's the upside? Lower risk to the bank, means they might just be willing to part with a few or their precious toppins and give you a loan. Even more reason to caucus with your mortgage rep early on in the search process.
Welcome back to that same old place that you laughed about. Welcome Back. Welcome Back. Welcome Back. Sorry Mr. Kotter. The show was always about Vinny Barbarino.


Hoboken Condos 2008
$300-$350k
Available 25
under contract 15
Sold past 12 months 82
Information deemed reliable but not guaranteed

Investing 102

Want to invest but don't know how? Not good at math? Good at math but bad at
investing? Call a realtor. Ask them their background and what makes them qualified to advise you on investment properties. Ask them to send you a sample property with a an investment spreadsheet. If they can't give you an extremely detailed spreadsheet then move on. You need an investment expert not some agent who predominantly sells condos to engaged couples looking to upgrade.

Investors: If you don't have a speadsheet that you can plug numbers into, then you should go to Vegas and bet Red 34. Given Big Papi's track record, he's the best bet I can think of.

Hoboken Condos
1500+ sqft
Available 55
under contract 19
Sold past 12 months 22
Information deemed reliable but not guaranteed

Investing 101

Sometimes I'll have clients call and say they want to invest in property in and around Hoboken. The two basic questions I ask are what type of place (residential, commercial) and what are the investment criteria. If a client can't answer those questions then I usually steer clear or give them a bit of homework before we have other discussions.

The number one question to answer: How much can you put down and what do you expect in return?

See the down payment affects things like ability to get a mortgage, purchase price,and Return On Investment.

In Hoboken, usually the best you are going to do is to tread water. Meaning you're hoping to find a property where with a 20-25% down payment, you can cover your operating expenses. Hoboken has been an equity play in the recent past. Cash flow investors head to the Heights.

Hoboken Condos
4 Bedrooms
Available 5
Sold past 12 months 3
Information deemed reliable but not guaranteed

Investing in Hoboken

I just returned from an investor meeting in Las Vegas... A few of us met with or property supplier from Charlotte. Investing there is different than in Hoboken. There are many cash flow positive units to be had in up and coming neighborhoods. And the entry price is below $100k.

When a client tells me that they are looking for a Hoboken investment property it usually falls into one of two categories. A condo purchased for rent or a two or three family building for rent. Sometimes the building will have a little commercial space with it too. The MLS is setup to focus on larger properties so investors need to find a skillful realtors who can provide a detailed snap shot of the investment...more on this tomorrow.

Why Vegas when my property is in Charlotte? You should see the building boom going on there. ...and where else can you see Wonderboogie?

Hoboken Investment Properties

Available 12

Information deemed reliable but not guaranteed

It's Not About The Rate

The Internet is great for buying a lot of things, especially simple to understand products. A book is a book. Mortgages are not simple products. It is not a commodity based on a rate. My clients who have headed down that online mortgage path will be the first to agree.

An excerpt form email I receive yesterday. The names were changed.

So in shopping for rates I filled an application at "Big Online Mortgage" . All companies gave me their rates and what they can and cannot offer, and were respectable, except for X Loans! Not only did the guy call me 3 times in one day and send me countless emails, but he was:
1- Pushy. I honestly felt if I go with them I will get pushed around.
2- Gave me a rate of 6.25% after 1 point discount (Your Recommended Guy gave me 6.25%, no points)
3- Trashed Your Recommended Company when I told him I am going with them. Saying something about them being fraud and will not be able to close. If it wasn't for the strong recommendation I probably would have believed it.

4- Condescending. He just called today and I told him politely thank you but I decided to go with Your Recommended Company, he went on telling me how come I wasted both of our times!!! and he even was like 'feel free to pay $2000 more for your closing'. Though in reality, his closing would have come $5,000 more, especially with the point.

As a realtor, I work with many mortgage companies and their respective representatives. When I recommend one to my client, it is because I have deemed them to be reputable, fair, honest, provide good customer service and offer a competitive product. There are good realtors. There are good mortgage people. There are bad apples that have the public looking at us like we are cigarette salesmen.

Don't get smoked. If you trust your realtor, trust your realtor's recommendations.

Hoboken Condos 2007

2 Bed One Bath
Available 51
Under Contract 20
Sold in the past year 145

Information deemed reliable but not guaranteed

Reduced For "Quick" Sale

Which came first? The agent who told the customer the condo was worth more to get the listing or the seller who didn't want to hear the truth?

Looking at price changes in the first 17 days of March. There are 473 active condos for sale of which 42 have price changes. That's nearly 9%. Perhaps sellers haven't caught up to the current market and that could be the case since those condos with price chages have been on the market and average of 82 days and the median number of days being 57. That's a long time to wait to get it priced right.

Hold The Phone! A closer look in the numbers reveals something else. The 800 lb gorilla realtor with the big national name prestige and reputation likes to reduce. Of the 42 price reductions this month, 25% have come from Mr. Big, although they only have 12% of the active listings. Since they have been in the real estate business over 100 years, the get the listing at any price model must still work today.

Hoboken Condos 2007
Price Changes in March 42

Information deemed reliable but not guaranteed

Going Green

On most St. Patrick's Days, the saying goes...there are two kinds of people in the world. The Irish and those that wish they were. Rising from their beds the next morning, stinking of yesterday's spilled beer gone stale, the revelers turn there attention to next year when green is the color of the day again.

Not this year. This is not the Year Of The Rat, but The Year Of The Green. According to the LEED website, Hoboken has four green projects. Not faux green projects where they put some fake grass on the roof and advertise "environmentally friendly" building, but real getting certified green projects.

From the LEED website. "The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. LEED is the nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings’ performance. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality." to learn more goto http://www.usgbc.org/

Who knows, maybe when we catch that leprechaun, we'll find a green Hoboken at the end of the rainbow.

Hoboken Buildings
Number of LEED Registered Buildings 4

Information deemed reliable but not guaranteed

Movin' on up.

Heads up Hoboken. Million dollar buyers are movin on up.... to uptown. Garden Street Lofts at 14th and Garden now boast ten condos for sale over a million dollars. Bam. Forget about the PATH, the play ground of the rich is the 14th street ferry.

Can a gated community north of 14th st be far off?

Hoboken Condos
New condos over $1MM
ten
Information deemed reliable but not guaranteed

Get A Hat

The NBA's poor Denver Nuggets. They are 11 games better than our lowly NJ/Brooklyn Nets and yet the Nuggets find themselves out of the playoffs while the Nets are squeaking out a trip to the post season. This calamity has transpired because the Nuggets find themselves in a power conference. Hence, a bad year to be a good team in the wrong place.

Buyers: Think about this when deciding between certain options. (e.g a two bedroom versus a three bedroom with the same square footage.) You want to be positioned against weak competition when it is time to sell. Fewer available three bedrooms makes it easier to sell. Get stats from your realtor to make an informed decision.

Don't get stuck with a good two bedroom when a mediocre three will get you into the playoffs.

Apples To Kiwi

Don't get tripped up. Be cautious when comparing properties for pricinging purposes. It's hard to compare apples to apples. Forget the internal upgrades (e.g. kitchens and baths). How about elevator versus walkup? 3rd floor walkup? 4th floor walk up? 5th floor walkup!!! Parking? deeded parking? garage parking? rental parking available? Outdoor space? Location.....

Price per square foot is a hard number to get a real comparison on over a wide range of properties. You may just pay for an apple and end up with a kiwi.

Stating The Obvious

This entry was going to be about comparing square footage numbers, but that will have to wait. There is a jack hammer pounding away outside my office window. Hoboken, it turns out, has decide to use our tax dollars to put up "no stopping or standing" signs across the street. Yes, on a side of the street where there is clearly no place to park and on a road where there is no room to stand.

I can only hope that the town thinks that the revenue from the tickets given to people parking on the sidewalk between the signs will more than offset the cost of installation.

Hoboken Condos Price per sqft
2Bed/2Bath,w/parking
Last six months
Active $502/sqft
Dabo $503/sqft
Sold $509/sqft
Information deemed reliable but not guaranteed

House Of Mouse

So I'm out showing property this weekend and I take a client to a unit that is new to the market. It looks like the occupants are just about moved out, but not totally. And there it is in the bedroom: 4 mouse traps the size of a carton of cigarettes. Not a pack, a carton. How many mice could there be? How big could those mice be? Questions that leave the would be buyers heading for the exits.

Sellers: If you have mice, get a cat. Mice are smart, they will move on.
Mice aren't like roaches. If you're from the city, you're used to roaches. Everyone has them, whether you see them or not. Roaches are accepted as a nuisance. If a nuclear bomb can't kill them, well it's just meant to be. Mice on the other hand... what a simple fix.

Hoboken One Families
Actives 10
Price range $700k-$2.2M
Information deemed reliable but not guaranteed

Over Priced

I went to five broker previews yesterday. The new properties ranged from slightly over priced to absurd. Is it sellers not wanting to hear the truth? Is it agents looking to get the listing at any price? Is it agents misleading the seller? I don't know. The result is the same. Properties that will sit.

It's one thing when you need it. (I bought $4 a gallon gas on vacation.) It's another when demand is elastic.

Hoboken Condos

First week Of March
New Actives 30

Information deemed reliable but not guaranteed

Ths Studio Stigma

Maybe it's the fact that you have to make your bed everyday, but studios seem to carry a certain stigma...and an opportunity. The market is much smaller than for one bedrooms. (Around 7% of the one bedroom market.) Studios don't have nearly the interest and thus there are some that can be had for a reasonable price.

But Brian we don't want a studio..... Most can be turned into one bedrooms for under $1000 by adding a wall with a sliding door. Then your studio has a bedroom and you've added real equity.

True Story: Some people like the benfits of having the bed in the living room. A friend of mine has frequently dragged his matress out of one of his bedrooms and put it in the living room in front of his 70 inch tv. Why have a couch when you can have a bed?

Hoboken Condos Studios
Actives 9

Range $279-619k

Information deemed reliable but not guaranteed

Averages Lie

Average. Put it in a personal ad. Next. Average. what does that mean? Average days on the market for sold condos in the past six months: 65 days. As a seller you may think after two months, we are still not at the average. And yet....the mean (roughly the 192nd condo of the 383 Hoboken condos sold in the past six months) is 45 days. Mr. Seller if you are over 45 days, the world is moving on. Time for that price reduction.

Averages: Don't trust them. Need more proof? Check out Wade Boggs the batting champion who couldn't get a clutch two out basehit. Take your averages and give me Big Papi anyday.

Hoboken Condos Last 6 months
sold 383
avg days on market 65
Information deemed reliable but not guaranteed

Smell The Coffee

As reported in the Hoboken Reporter, there's a new retail center coming to 13th and Adams. One story, 7 to 11 stores, 50 parking spaces....Let's see that's probably one coffee place, one bank, one real estate company, one liquor store, one chinese restaruant, one pizza place, and oh yea one nail salon....because Hoboken doesn't have enough of all of these. That's no doctor's office (just try and find a freaking dermatologist in this town that takes Cigna).

Why has this happened? I guess the parking lot would be filled with people going to the dermatologiast and not buying coffee at 2pm. More stories on the strip mall (where my dermatologist would be), means more parking needed. ugh. Knock knock, most people don't drive or don't need to drive to get coffee, pizza, manicures etc. even to go to the doctor. Street parking or the garage on 14th street makes sense... And think of all the money Hoboken could make on the parking tickets, maybe buy another Boot van.

Look at the numbers 404 condos for sale. Only 37% have parking. This is not Maplewood.
I'm sure the residents around the new strip mall are thrilled that there will be a giant empty parking lot at night sitting right in their neighborhood. Shhh. I bet if you listen real close, you can hear the collective groan.

Hoboken Condos 2008
Actives 404
Active w/deeded parking 148
Information deemed reliable but not guaranteed

The February Numbers

This is actually a picture of four people waiting for the bus at 7th and Washington. I'm back and freezing my fanny off. It's 55 degrees today. I think I'll stay in to mull over the February numbers.



Fifty six Hoboken condos under contract. One hundred and twenty new condos to the market including retreads and 12 new construction units at 405 4th st and 223 Park. 47 Sold condos. Not bad for a slow month.



March: The thaw begins.


Hoboken Condos 2008
The February Numbers
New 120
Under Contract 56
Sold 47