Its official: Palm Beach Daily News admits palm beach real estate orices in free-fall

http://www.palmbeachdailynews.com/news/content/business/2009/02/10/SLOPE0211.html

Today, the Palm Beach Daily News ("the shiny sheet") reports that single family hoes on palm beach island are finally seeing prices drop fast. This home, as an example, was a knock down in a great location with premium new constuction. It sold for......60 cents on the dollar from the peak asking price. This is in line with other recent sales. As other owners begin to realize that prices need to come down at least 50% from 2006 peak, they will begin to sell.


"Tuesday, February 10, 2009



Daily News Photo by Ruth Cincotta
(enlarge photo)
George L. Ford III's Mediterranean-style house at 756 Slope Trail has sold for $5.96 million. The buyer is Christopher Dacamara Orthwein.

Last week's sale of a new island home at a discount of more than $4 million off the peak asking price could be a sign of the times — or a sign the price tag was initially inflated, real estate professionals associated with the deal said.

Novice developer George L. Ford III's Mediterranean-style house at 756 Slope Trail sold for $5.96 million, down from a $10.3 million peak in December 2007, about the time it was first openly marketed.

The five-bedroom, 61/2 bath residence is situated atop a hill next to the town's historic Art Deco-style water building, and it overlooks the Palm Beach Country Club golf course.

According to the warranty deed, the new owner is Christopher Dacamara Orthwein, son of Adolphus Busch Orthwein, former vice president of operations for Anheuser Busch Cos.

Michael Montgomery, of Jeffrey A. Cloninger & Associates Inc., represented Orthwein in the sale, and Scott Gordon, of Fite Shavell & Associates, represented Ford.

Gordon said the poor economy might be to blame for the price reduction.

"I think it's just the times we're in right now," he said.

Gordon said the price started at $8.9 million before rising to $10.3 million and then dropping to the final asking price of $7.99 million.

A year ago, Ford had a "much better offer" but turned it down, Gordon said, declining to elaborate.

In retrospect, the home might have been priced a little bit above the market, Ford said."