According to a recent article in the Jersey Journal, it appears that Hoboken NJ has survived the housing crisis and is doing well despite the issues surrounding the crisis. This is because of Hoboken’s proximity to other major cities such as Newark and proximity to Manhattan, and it is also because of the decision of some commuting New Yorkers to move to a location that is family friendly and that offers a break from hectic lifestyles in Manhattan and other parts of New York City.
Hoboken’s Real Estate Sales Booming
Hoboken’s real estate industry is exceeding expectations in ways never thought of since the housing crisis threatened to hurt this industry and in a May 2012 article on Bloomberg.com, new purchases of Hoboken-area homes increased by 3.3% last year and at an amount of 343,000. One reason why some people decided to purchase more homes in Hoboken is the promise of better interest rates on home loans nationwide. Mortgage rates fell to 3.78 last year, which was the lowest for Freddie Mac since the early 70s and the Federal Reserve promised to keep home loan interest rates at near zero this year.
Condos in Hoboken Are Selling Quickly
Hoboken has gotten in on the nationwide condo craze as more people in this city are purchasing them. Hoboken real estate agents stated that as soon as they listed the condos for sale, buyers purchased them within days. They advise potential condo buyers in Hoboken to act quickly if they see a condo they like. In addition, the supply of condos in Hoboken is lower than the demand so buyers should keep this in mind.
Other Statistics Regarding Housing in Hoboken
Hoboken has a lower-than-normal average of unoccupied homes, and the average this city has, 8% is below the national average percent of unoccupied homes. 31% of the properties in Hoboken are owner-occupied while the percentage of rental properties in this city is 42%, which is below the national average.
Rising Apartment Rent Prices Driving Home Purchases in Hoboken
Another reason why homeownership is increasing in Hoboken is because of the rise in rent prices among many landlords in this city. As a result, buyers feel it would be more cost-effective to take advantage of the low interest rates some banks are offering and decide to buy a home instead.
Conclusion
Hoboken is one of a handful of cities that didn’t have a failing housing market during the housing crisis. Instead there has been an upswing in the city and today it has a lot of developments in the works to meet the demand for homeownership in Hoboken. This is evidenced in the short supply of condos for people who want to live in them. Hoboken is close to New York City so it will continue to be a hub for Manhattanites who want to live apart from their hectic lives in the city.
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