Hoboken Townhouse sells for $1 million below asking price
A Hoboken townhouse drove the hot residential market to its chilled destination, eventually settling for $1 million below initial demand and second place in an area record.
The house at 614 Hudson Street, first listing at the end of last year before claiming its place among Hoboken’s highest sales – after a townhouse that sold for $6.5 million in 2016. Although 2022 has seen Hoboken residential reaching new heights, the would-be record holder was not immune to the factors hampering door-to-door sellers everywhere.
The house was built in 1897. Buyers 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, landing on the market as inventory lows, prices high and bidding wars hit 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 than normal.
The sellers are “happy the house is sold,” the broker said, but resent the $1 million loss asking.
“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 earned the lion’s share of Hudson County’s top 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, pushing homebuyers out of the market. After hovering around 3% at the end of last year and at the start of 2022, rates rose above 6% in June before falling 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.