The subprime mortgage collapse isn't just threatening the market for low-end homes; it's also afflicting luxury homes.
What could the collapse in the subprime mortgage market possibly have to do with whether Dr. Jeffrey and Madeline Stier get full price for their four-bedroom house in the wealthy New York City suburb of Larchmont?
Not much, you would think. After all, the people who live in Larchmont tend to be lawyers, doctors, and Wall Streeters. Generally speaking, they aren't the credit-challenged borrowers who must resort to subprime mortgages to finance their homes.
Reduced: The asking price for this house in affluent Larchmont, N.Y., was recently reduced from $2.5 million to $1.99 million.
And yet talk to the Stiers about the tepid demand for their home -- a lovely Tudor on a tree-canopied cul-de-sac near the local elementary school -- and it's clear that what's happening in the subprime market is reverberating all the way up the real estate food chain.
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