Wait and rent until we see prices get back to income and rent levels.

Dear Ed, this is really RealEstateCharlie. My observation of Larchmont market, as well as Mike Luchen's was posted in August. The statistics did not lie at the time. (Math is the only truth). Yes there were financial issues going on but it was before the sub -prime mess and its aftermath exploded on the scene. If I made a post now, it would likely be different. Go easy on us. I was only providing a true snapshot of the market from my MLS data, which is more accurate than you get with Zestimates and other providers. Cheers and good luck Ed. I hope you do enter the market in the summer.

Q1 2009 Larchmont Market Update
(Single family homes in 10538)

In like a lamb, out like lion.

The weather in the early months of Q1 2009 was turbulent but the Larchmont real estate market had a tepid start with a surge in sales activity occurring late in the quarter. Read on for more information.

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In Q4 2008, we began to witness the beginning of significant market shift downward as a result of the turmoil in the financial markets and lending industry. In Q4, the median price dropped 14% and sales volume decreased 48% from Q3 2008. This trend continued in Q1 2009 where prices and closed sales volume maintained their downward progression. This is not surprising given the fact that Manhattan has seen similar drops in its market over the last few quarters and Southern Westchester often mirrors the events in the city to a certain degree. (See the Wall Street Journal article April 2, 2009. )

I have created a larger report with the full statistics and observations about Larchmont that will not fit into this post (sorry). For a the full report you can click here: http://realtytimes.com/reumcr/briancarrsmith

Just an observation but in reaction to "Real Estate Charlie" (really?), Mike Luchen and these other "real estate pros", do you think that anyone selling homes for a living will tell you to wait and not buy? that the market is weak and may be getting weaker? While NYC and the affluent suburbs surrounding have so far weathered the storm the one thing protecting the area (the stock market) has now faltered. Bear Stearns, Lehman, AIG, Morgan Stanley and even GSCO have either disappeared or are rapidly cutting jobs. Wait and see what the market looks like next summer when the shock factor has settled in. Beware of "real estate pros"!

Just an observation but in reaction to "Real Estate Charlie" (really?), Mike Luchen and these other "real estate pros", do you think that anyone selling homes for a living will tell you to wait and not buy? that the market is weak and may be getting weaker? While NYC and the affluent suburbs surrounding have so far weathered the storm the one thing protecting the area (the stock market) has now faltered. Bear Stearns, Lehman, AIG, Morgan Stanley and even GSCO have either disappeared or are rapidly cutting jobs. Wait and see what the market looks like next summer when the shock factor has settled in. Beware of "real estate pros"!

Larchmont is still faring better than the rest of the county. The Westchester Putnam Multiple Listing Service (WPMLS) released the Q3 sales information and indicates that county sales volume is down (compared to Q3 2007) 25% and prices are down 3%. The lowest performing sector has been the multifamily properties. For the full WPMLS Q3 Sales report click on http://www.homesoflarchmont.com

Q3 2008 sales data vs. Q3 2007 sales data for Larchmont indicates that while total sales volume was down 20%, the average sale price for homes was up 10% suggesting some continued strength in the local market. (comparing single family homes sales in 10538 zip code). Average days on market bumped up slightly 4% to 129 days. Median sale price is $1,132,758.

The strongest segment for the last few months has been the under $2M price range. Properties in this range are selling well provided they are priced correctly. In addition, the properties that are selling well do not have any "quirks" or odd features that would turn-off a buyer. Buyers are much more discerning today and not willing to put up with small rooms, an odd floor plan or similar issues.

The recent turmoil in the financial and insurance industries in mid-September has definitely caused concern amongst the buyers that are out there today in the Larchmont market and the data points above do not reflect these events. Many buyers are taking there time and waiting to take any action until Q1 next year. The next few months will definitely be interesting as the government plan is implemented, the next president is elected and global markets recalibrate.

Larchmont has been affected by the recent economic news and, though there are terrific homes on the market, the buyers from the local areas like New York City and neighboring communities are waiting for the 'shoe to drop.' They may be waiting for their bonus, to see if they will keep their current job, to see what will happen to prices, or for something else.

We feel that this market will get stronger for sellers in the New Year when the economic problems have found a more stable point. For buyers who can get a mortgage and have a secure income this is a great time to buy! This is true for many parts of Westchester County as well and for many price ranges!!

You've gotten some good answers that I agree with, but your general question should focuse on why you are interested in Larchmont. It is a small area that is bordered by some desireable neighborhoods that don't have the same cache that you will be paying for in price per square foot and taxes that are almost double those of some of the border communities. If education isn't a priority, then I'd look in New Rochelle, Mamaroneck and other East Westchester area to get up to a 30% bang for your buck. Otherwise, Rye, Rye Brook provide great schools in addition to Scarsdale and other Nationally exceptional school programs. Sure, the property has less value if you go to New Rochelle or Port Chester, but you can do the math for school cost versus reduced home value in less desireable school districts.

Good answer Charlie, stats, data, etc. I'm surprised Larchmont is holding up as well as it is, but its a very small area and desirable so its not real shocking. Its too bad Larchmont didn't have its own high school, although if you can afford most of the property there, private school is a pittance.

Dear Stephen, looking at your question strictly analytical, the market is killer in Larchmont. Right now, in 10538 Zip, single family homes, there are 61 Active. In last 6 months, 94 have SOLD. That's about 15.6 homes per month selling. The absorption rate shows an average of 3.9 months from market to close. That's intense. Great for a seller... Tough on an unprepared buyer. ..
Sincerely,
Real Estate Charlie
Prudential Centennial
140 N Chatsworth.

I think that the market in Larchmont and surrounding areas are great. I just listed a home at 6 Acorn Ln in Larchmont for 1,795 and sold it for full price in under 5 days. The market will only be good for a select few. Ask 10,000 agents the same question and only 10% will give you my answer.

Mike Luchen
Coldwell Banker Residential Brokerage
White Plains, New York
Visit my website to find out how to sell in 90 days or less, For More Money and with Very Little Hassle at
http://www.larchmontnyhomesvalues.com/

Stephen- The general market is slower but our offices are busy and our agents our working hard and working smarter- to do everything to navigate this market and target our listings to the right qualitified buyers. If you price your property right- it will sell. There are many qualified buyers who recognize that this is the best buyer's market in many years. You need an aggressive and knowledgeable agent and agency working with you to help you find these buyers and get you the best price. You need these agents to find you the best deals and negotiate best possible price on both ends -if you are selling or buying. A strong agent will be strong at the negotiating table. They are worth their price. You are worth having the best representaion. So to answer your question- the market is challenging but quite an opportunity to make the best deals in years. Make sure you are represented by the best- and this should be a profitable venture. Call me for further questions or help- Debbie Fugazy Associate Broker Houiihan Lawrence in New Rochelle 914-636-6700 DFugazy@HoulihanLawrence.com