Evans Report for Palm Beach Home sales is wrong

Every seller is prepared to sell for fair market price.
Every buyer is prepared to buy for fair market price.

So, what is the market doing in palm beach? What is fair market price in palm beach?

According to the recently released "Evans Report" as reported in the palm beach daily news, the median sale price jumped up more than 10% in 2008 when compared from 2007.

Huh?

How can the Hamptons, Fisher Island, Aspen, Manhattan, Europe, Russia, South America, Asia all be going down (let alone Boca Raton & Jupiter & Palm Beach Gardens), and the Island of Palm Beach is supposedly going UP?


I did a back of the envelope calculation:

We are talking about the "average" home in palm beach. Something that might sell in the 2-50 million dollar range.

The problem is that 3 gazillion dollar transactins closed in early 2008. BEFORE the DOW collapse. Before the bank meltdown. Before Palm Beacher Madoff's scandal.

So, of the 3 transactions that went for 95, 68, and 81 million dollars each, that represents a total sales of $244 million. Divide that by the remaining 101 reported transaction and you have an "extra pad" of 2.3 million per sale. so, subtract 2.3 million from Evans padded number of 3.875 and you are left with 1.6 million.

Now, if 2007 had average sale of 3.5 million according to Evans, then we have a year to year drop of.....about 40%.