Moody's Economy : Palm Beach home prices will settle at 62% down from 2006 peak

Moodys technical website economy.com now predicts that prices in South Florida (Broward andPalm Beach counties) will settle in late 2010 after prices have fallen 60% from the peak (2006) prices.

This is beginning to be reflected in recent home sales (January 2009 home sales on Plam Beach Island): Prices are DOWN from their 2006 peaks and falling fast as more inventory comes on the market on the island.

From Blockshopper.com :
" Mr. Abony Lorne Abony bought a four-bedroom, 6.5-bath home at 695 S. County Road in Palm Beach for $3.5 million from Cement Pond Holdings, LLC, on Dec. 30.
Cement Pond Holdings, LLC, paid $7.8 million for the property in April 2006. The 6,426-square-foot home was built in 1953."


Now, he is paying 44 cents on the dollar from the Peak (2006) so what looks like a "steal" is actually a seller realizing where the market will end up (i.e., down 60% from peak 2006 prices) and selling now, rather than race to the bottom over the next 2 years with the other homes that are coming on the market every week on Palm Beach island.