Tuesday, April 28, 2009

Professor: "Even during the Depression, I’m not sure prices fell this quickly,”

The Case-Shiller data show that housing markets across the United States are still suffering: prices are down 45 percent in Miami from their highest levels.

The same bubble that drove UP palm beach is dragging it down.


Barey a half-dosen homes have sold this year.

Tuesday, April 21, 2009

House on Pendleton sells for 2003 price

The single family home at 250 Pendleton (Total feet Area Under Air : 4462) sold in March 2009 for 3 million.

It last sold in february 2005 for 3.5 million and previously for 2.5 million in may 2002, according to county records


So one more palm beach home sells for 2003 price. Is 2002 pricing next on the way??????

Thursday, April 9, 2009

Housing Slump Hits Manhattan - more than 40% price drops

The markets of Palm Beach and Manhattan are tightly linked and this should provide helpful guidance to sellers hoping to sell their Palm Bech homes at above 2002 prices:


As the NY times reports :

"the Manhattan real estate market has just begun a steep slide. It parallels the decline in New York’s financial services industry, and housing analysts say it may continue long after other markets heal....housing analysts are predicting a prolonged slump in prices and sales that could last as long as four or five years."


"The stress is most severe at the high end of the market. "

“For the last three years, it was the bigger the better,” said Dolly Lenz, a broker at Prudential Douglas Elliman. “Now the key words are smaller, livable and affordable. Before no one asked what the maintenance was. Now everyone wants to know.”

Referring to the former home of Harry Belafonte, now owned by Abigail Disney and first listed for $17.5 million " After a series of price cuts, Ms. Disney has finally found buyers for the property, for just under $7.5 million, a 46 percent discount from her initial asking price. But to make a deal she agreed to restore the walls and convert it back into two apartments and sell it to two buyers."


"Shaun Osher, the chief executive of Core Group Marketing, said he had begun to see more activity this spring, but at much lower prices, with luxury apartment prices off as much as 40 percent."

Sunday, April 5, 2009

30% is the new black: Palm Beach Spec home sells for 30% below asking

1620 S. Ocean Blvd. sold for $12.5 million early last month.


HOWEVER, the home was listed for 17.5 million up until 12/08. Then there was a price drop to 13.9 and a final reported sale of 12.5 In other words, the seller began to realize that we are no longer in 2006 or 2005 or even 2004 anymore.

Once again, the palm beach daily news runs its real-estate spin:

"Proving Palm Beach property is still a rare and highly desired commodity, two prospective buyers' bids recently determined the sales price of a newly constructed waterfront home, agents said"


HUH??????????? Look at the web and every week there are more and more of these "rare" properties are on the market: Palm Beach single family homes from 1 million on up to homes in the 10-20 million range.


Smart sellers are getting out now at 30% off. In a few months it will go to 40% off and finally settle in the 50% off range. These numbers come from objective economists, not from me and certainly not from listing real estate agents.