Hoboken Townhouse sells for $1 million below asking price
A Hoboken townhouse led the hot residential market to its chilled destination, eventually settling for $1.1 million below its original price of $7 million – and second place in the record books. piece.
The house, at 614 Hudson Street, first listing late last year before claiming its place among Hoboken’s highest sellers at $5.9 million, behind a townhouse that sold for $6.5 million in 2016.
Although 2022 saw Hoboken’s residential market reach new heights, the potential record holder was not immune to factors hampering home sellers everywhere.
The house was built in 1897. Sellers Matt and Diana Thomas – who work as a day trader and recruiter respectively – bought the property for $2.9million in 2016, before starting a gut renovation.
They listed the 11-bedroom property for $7 million last November, hitting the market as stocks were low, prices high and bidding wars produced national records. However, Peter Cossio of Brown Harris Stevens, who had the listing, said the price was not correct.
“The asking price was a bit aggressive when we listed it,” Cossio said of the home, which made the cover of the New York Post to reach a record.
Cossio said sellers refused to lower the price when the market was hot, so when activity cooled during the summer, the buyer was able to get a better deal.
Sellers are “happy the house is sold,” the broker said, but are feeling the burn of getting $1.1 million under demand.
“I don’t think they’re happy with 5.9, to be honest with you,” Cossio said.
Records have become familiar ground for Hoboken this year. The city kicked off 2022 with unprecedented prices, with a penthouse selling for $4.2 million in cash and claiming the record for the most expensive condo in the process. In the first half of 2022, the city constituted the lion sharing of Hudson County’s best deals.
However, the rest of 2022 has brought tougher ground for sellers, which means the Thomases probably aren’t the only ones having to adjust their expectations.
Mortgage rates have doubled in recent months from record lows a year ago, repel home buyers of the market. After hovering around 3% at the end of last year and at the beginning of 2022, the rates exceeded 6% in June before slowing down slightly and returning this month to 6.7%the highest since July 2007.
Inflated borrowing costs are dismissing hopeful sellers and buyers in northern New Jersey, local brokers told northjersey.com. Data from the NJ Association of Realtors shows new listings and closed deals for townhomes and condos in Hudson County were down about 20% year-over-year in August.
Along with Cossio, the Hudson Realty Group team represented the sellers. BHS also represented the buyer.