A Hoboken townhouse rode the hot residential market to its cooled-down destination, ultimately settling for $1 million below its initial asking and second place in an area record.
The home at 614 Hudson Street first listed late last year before claiming its place among Hoboken’s highest sales — after a townhouse that sold for $6.5 million in 2016. Though 2022 has seen Hoboken’s residential reach new heights, the would-be record setter wasn’t immune to the factors that are hampering homesellers everywhere.
614 Hudson Street in Hoboken (Photos via Brown Harris Stevens)
The home was built in 1897. Buyers Matt and Diana Thomas — who work as a day trader and recruiter respectively — purchased the property for $2.9 million in 2016, before commencing a gut renovation.
They listed the 11-room property for $7 million last November, landing on the market as low inventory, high prices and bidding wars notched national records. However, Peter Cossio of Brown Harris Stevens, who had the listing, said the price wasn’t right.
“The asking price was a little aggressive at the time that we listed it,” Cossio said of the home, which earned a New York Post headline in reaching for a record.
614 Hudson Street in Hoboken (Photos via Brown Harris Stevens)
Cossio said the sellers refused to lower the price when the market was hot, so when activity cooled into the summer, the buyer was able to get a better deal than normal.
The sellers are “happy that the house is sold,” the broker said, but are feeling the burn $1 million down from asking.
“I don’t think they’re happy with the 5.9, to be honest with you,” Cossio said.
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Records have become familiar territory 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 made up the lion’s share of Hudson County’s top deals.
However, the rest of 2022 has brought rockier terrain for sellers, meaning the Thomases likely aren’t alone in having to adjust their expectations.
Mortgage rates have doubled in recent months from record lows last year, pushing homebuyers out of the market. After hovering around 3 percent late last year and in early 2022, rates surpassed 6 percent in June before ticking down slightly and returning this month to 6.7 percent, the highest since July 2007.
Inflated borrowing costs are sidelining hopeful sellers and buyers alike in northern New Jersey, local brokers told northjersey.com. Data from the NJ Association of Realtors show new listings and closed deals for townhouses and condos in Hudson County were down around 20 percent year over year in August.
Along with Cossio, the Hudson Realty Group team represented the sellers. BHS also represented the buyer.