Hoboken and Jersey City 2018: End of Year Real Estate Market Report.


– If you live in Hoboken or Jersey City, you’ve probably noticed
the real estate market has slowed down in 2018. Today, I’ll be discussing
exactly what’s causing the slowdown and what you
can expect to see in 2019. (powerful music) Hey, welcome to the show,
thank you so much for watching. Now, let’s just jump right
into it starting with Hoboken. In December 2018, we
had 232 active listings compared to the 132 actives
we had in December of 2017. So that is a 76 percent
increase in housing supply versus last year. Now meanwhile, on the demand
side, in December 2018, we had 40 properties go
under contract compared to the 52 that we had go under
contract in December of 2017. So that’s a 23% drop in
demand versus last year. Now, on a side note, the
total number of sales in 2018 was 929 compared to 932 in 2017. So demand overall has
stayed pretty consistent, and we’re seeing a slowdown
not because demand is necessarily dropping, it’s ’cause supply has increased dramatically. And that can be shown and
demonstrated very simply by using the buyer, excuse me, the seller versus buyer ratio. So, in December of 2018 we had six sellers for every one buyer. Compare that to the three sellers we had for every one buyer we had in 2017. So if you’re a seller, you need
to be smart on how you price your home, because buyers
have two times the amount of homes to choose from. Now, real quick, if you’re
thinking about selling, we have a simple three step
process to help you succeed, so just contact me below, my
contact information’s here, shoot me a text, email, but the first step of that process is to
request a consultation. In downtown Jersey City in
December 2018, we had 294 active listings compared
to the 120 actives we had in December of 2017. So that’s 145% increase in
housing supply versus last year. Now meanwhile, on the demand
side, in December of 2018, we had 28 properties go under contract compared to the 38 that
we had go under contract in December of 2017. So that’s a 26% drop in
demand versus last year. Now, a side note on that,
the total number of sales in 2018 dropped 14% from 699 sales to 602. So we’re seeing a
slowdown because inventory is not just outpacing
demand, but demand is also dropping as well, and
that can be demonstrated very simply using the
seller versus buyer ratio. So in December 2018 we had 11 sellers for every one buyer,
compared to three sellers for every one buyer that we had in 2017. So if you’re a seller,
you need to be very smart in how you price your
home because buyers have four times the amount
of homes to choose from. And again, if you’re thinking of selling, we have a very simple three step process to help you succeed, and the first step is just requesting a consultation. So my contact information should be below, or click one of the buttons. Now what I wanna do is
go over to the board and talk about the absorption rates. Alright, let’s talk about absorption rate, and what absorption rate simply means is if nothing new came on
the market starting today, how many months would it take for all the active listings to be sold and gone. So a seller’s market is
anywhere from zero to four months of supply, a neutral
market is four to six months supply, and six months and above, you are in a buyer’s market. So first, Hoboken in December
of 2018, we were at six months of supply, so we have officially
entered a buyer’s market. Compare that to last year at this time, we were at a three month supply, so we were in a seller’s market. So we made a big shift over
here into a buyer’s market. Now let’s look at downtown Jersey City. We’re at 11 months of
supply for December of 2018. And you compare that
with December of 2017, we were only at three
months, we were in a seller’s market back then, too,
and we’ve come a long way into a strong buyer’s market. Now, something to keep
in mind is depending on what price point you’re
in, your absorption rate and whether you’re in a seller,
neutral, or buyer’s market is gonna change. So if you’re thinking about
selling, we have a simple three step process to help you succeed, and the first step is simply
requesting a consultation. So click the link above or below or shoot me an email, a text,
and we can start that process. So thank you so much for watching, I’m Chris Ozar, and until next time. (lion roars)

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