Is Hoboken Housing Market Immune?

Hoboken mentioned on Bloomberg: Real or Propaganda?

Several Hoboken411 readers mentioned an article that talked about Hoboken Real Estate on recently.

Toll Bros. says they’re doing great – how about everyone else?

The headline of the article made it seem as if Hoboken properties are flying off the shelves like hot cakes: “Hoboken Homes Gone in 60 Minutes Signal U.S. Recovery” – and the sizzling opening paragraph read:

“For the latest sign of a U.S. housing rebound, Toll Brothers CEO Douglas Yearley points to Hoboken, New Jersey: A couple torn between two condos last month at the sales office for its Hudson Tea complex decided to think about it over lunch. When they returned an hour later, both units were gone.”

To me, the article read like a sales brochure for Toll, and based on the rest of the housing market in this country – it begs the question “Is this factual news, or just psychological propaganda wrapped into an article?”

Perhaps Hoboken is insulated from the woes everywhere else – but is the market really rebounding? Are they doing this to promote the new 1450 Washington building, as well as the upcoming Maxwell Place project they’re heavily invested in?

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4 Comments on "Is Hoboken Housing Market Immune?"

3 years 8 months ago

Sure they may be selling now with low mortgage rates and good credit. But debt is debt, and when the price of practically everything else drastically goes up, those mortgage payments will be skipped and skipped. I don’t see how Hoboken is immune from a wave of defaults and foreclosures in the future. Unless I’m missing something

The Professor
3 years 8 months ago

This is what I bet really happened: salespeople knew quite well both units were going to go under contract that day so they showed them to these people (who probably thought they had some time and negotiating leverage) – and then tried to trick them into buying a third place Toll had more trouble getting rid of. Who knows if someone in this situation even pays higher at that point. Probably. In regard to 1450 Washington, units did seem to sell very fast for what it is. The interest in this building is a surprise to me. I don’t like… Read more »

3 years 8 months ago

Interesting questions raised by this post – it’s nice to see others don’t blindly believe everything they read.

3 years 8 months ago

The Hoboken market was never immune, as prices did decline about 20-25% from the height of the bubble in the mid 2000s. However, it has indeed bounced back nicely. Consider these facts: Average prices for a 2 bedroom condo breached the $500 per sq. ft. barrier in May – something not seen since March 2009. Prices are up 10% for average sales price and 13% for price per square foot since last year. There’s only a little over 3 months of existing inventory, which is next to nothing. Lastly, average days on market for a new listing is only 47… Read more »