Recently I posted two blogs regarding single family Larchmont homes. One post was focussed on the Larchmont P.O. and the other on homes in the village of Larchmont. Sales in both of these markets have been very bullish and positive. But like so so much that is happening today – this market is full of contradictions. The cooperative market remains firmly in buyers market territory.
Just a quick note: These figures are derived from the WPMLS and consist of cooperatives in the Larchmont P.O. as well as the village of Larchmont.
The chart below represents median sales prices from 2006 to the current year. I used 1 BR cooperatives only because some years larger units dominated and other years smaller units were in heavy demand. This skewed that data so this chart is meant to give an apples to apples comparison. The years before the crash are represented by the red bars. The years following are in green. The current year which has one quarter left to it is in purple.
Following the crash of 2008 prices dropped from a $223k median price to $188k. then they perked up during the period of the tax credit to $203k. The end of the tax credit caused demand to drop off (the vast majority of 2010 sales went into contract before the ending of the tax credit) and so prices dropped in 2011.
This chart represents overall sales volume – from studios to large units with more than 3 bedrooms. As you can see – demand collapsed with the crash of 2008 down from a healthy 60 units a year in 2007 to 48 in 2008 and a very meager 33 in 2009. Volume picked up in the latter part of 2009 to early 2010 and then dropped off after the tax credit ended. Volume in 2011 is looking a good deal stronger than 2010 and is on track for a fairly solid Q4. The price reductions are increasing demand so this indicates a corrected market that is hitting an equilibrium.
Although we need more movement in the jobs market for prices to rise – we all know that eventually housing recessions will end. The NYC coop market is very healthy with prices on the rise. Single family home prices in this location are also rising. With interest rates at an all time low, buyers who have the credit to get a loan should snapping up these units. This has gotten a bit too sweet to last. Affordability is better than it has been since Eisenhower was president. That’s before I was born – and I’m not young! So this is a buying opportunity. Certainly when you compare purchasing a coop vs. current rents – buying wins hands down in terms of affordability. So my advice to buyers is for heavens sakes – get off the fence! This is a SALE – waiting for further reductions is counterproductive. The trouble with waiting is that if you wait until you KNOW the bottom has been reached – prices will already be on the rise and any negotiating leverage you may have had will be gone.
© 2011 – Ruthmarie G. Hicks – https://thewestchesterview.com – All rights reserved.
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