The aftermath of the tax credit had varying effects on Larchmont homes for sale.
In many ways – it was a story of two completely separate markets. Single family homes for sale in Larchmont were strong with prices heading upwards and sales volume virtually unchanged from 2009. But the cooperative market had slowed down significantly. Prices have stalled, but an underlying weakness in that market indicates further declines in store.
Larchmont NY homes have always been popular and in high demand. The area has been highly resistant to correction and once prices dropped during the bear market of 2008 they were among the first to recover. This is a resilient portion of Westchester and this is reflected in the housing stats.
According to the raw MLS data prices have risen 17% from Q4 of 2009 to median price of $1,050,000. The price range for SF homes went from $449,000 to $4,490,000. Sales volume was virtually unchanged from the previous year. The inventory increase to about 8.5 months is to be expected at this time of year. Buyers are active and the inventory will be soaked up.
Now I know a lot of Larchmont residents are about to start eagerly start calculating the gains that their home has given them. After five years of a rather dicey market – I would be tempted to do the same. Sorry to throw a bucket of cold water on top of the good news but the median sales price is a reflection of a couple of factors. The tax credit brought out first time homebuyers more than move-up buyers. Lower end homes (under about $750k throughout the county) dominated 2009 sales landscape. Higher end homes came back into fashion this year – upping the median sales price. Whereas 32% of Larchmont home sales in Q4 2009 were in the $1 million + range, a little over 50% of them were in that category in 2010. In general however, prices are up. Offers on properties in the area appear to be strong. Sellers have less to fear from the big bad bear and buyers need to put in solid offers and not low-ball if they truly are in the market to buy.
Cooperatives sales in Larchmont show that there are two markets in Larchmont NY homes. Like much of the Westchester condo and coop market, the Larchmont market has lagged behind the rosy sales report on single family homes.
Sales prices for cooperatives roped about 1.2%. But that mild figure belies an underlying weakness that is better reflected in sales volume numbers. Sales volume is down 41% from Q4 2009. The median price of $250,000 is down slightly from the previous year, but more 1 BR units were sold in 2009 than 2010. The 13 months of inventory reflects the general malaise of this market. However, I have noticed an increase in activity in the condo/coop market across the board. Its an indication that prices are pretty much bottoming out. Buyers should be out and ready to pull the trigger because coop and condo prices combined with low interest rates are very attractive.
Yes, I realize I’m only including cooperatives in the official report. The reason for this is that significant sales of condos did not truly exist for this period and when you work with such small numbers, statistics become problematic. For condos, the price point is higher. The higher end of every market has done better than entry level this year. So care must be taken not to read too much into this market from either the SF home market and the coop market. From a casual look at the numbers, condo sales were fairly flat. Care must be taken at the higher end of this market. Westchester condo sales volume is ticking up in high-end condos generally.
The stats include all homes within Larchmont Village and the Larchmont P.O. which is part of the unincorporated portion of the town of Mamaroneck. They share the same P.O. and zip code of 10538. The reason I combine the information in this way is that most people see the Larchmont P.O. as truly a part of Larchmont, though the distinction requires clarification.
© 2011 – Ruthmarie G. Hicks – https://thewestchesterview.com – All rights reserved.
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