More Palm Beach houses on sale for $1.5 million and less
By ROBERT JANJIGIAN, Palm Beach Daily News
Monday, June 22, 2009
An island home has never come cheap, but the minimum asking price of modest single-family residences in the 33480 ZIP code has become significantly more reasonable this year.
"With a supply of homes in the mid-ones and under, the island's entry-level bar has been lowered from the $2 million mark, something that hasn't been seen in many, many years," said Engel & Volkers associate Liza Pulitzer, who's been selling Palm Beach real estate for 28 years.
In 2008, the median sale price of a single-family house in Palm Beach was $3,875,000, said attorney Leslie Evans, who tracks the island's real estate market through The Evans Report, which has been published annually since 2000.
"The preliminary figure for the first quarter of 2009 is approximately $3.5 million," he said, and no sales for less than $1.5 million had been recorded since January.
In 2007 and 2008, the fastest-growing price sector for single-family Palm Beach properties was in the $2.5 million and lower range, Evans said.
"The momentum seems to be in that area of the market for the first six months of this year," he said. The trend is in line with 2004, when the median price for a Palm Beach home was $2.2 million, he said.
Last year, Evans reported a dozen transactions of less than $1.5 million.
"There are always smaller, older houses available for under $1.5 million," said Evans. But in most cases, the price per square foot for these properties is staggering, sometimes above $1,000 a square foot, he said.
Pulitzer said she recently searched for North End properties with asking prices of about $1.5 million for a client.
"Two years ago, I would have only been able to find a building lot for $2 million," she said. "Now we're seeing a pretty good number of houses at $2 million or less.
"People are being more reasonable and realistic when it comes to pricing," she said. "You still have to pay a fairly high price for an entry-level house, but you're looking at a half-a-million in savings over what you might have paid just a few years ago."
For less than $1.5 million, "you get a nice starter home, usually a fixer-upper or a handyman special," said Century 21 agent Douglas Rill, who has offices on the island and in West Palm Beach, and has been in real-estate 36 years. "And entree into Palm Beach."
Rill currently has two listings with asking prices below $1.5 million: an $895,000 three-bedroom, two-bath cottage on Root Trail built in 1925, and a $1.27 million three-bedroom, 3.5-bath bungalow on Park Avenue.
The $895,000 property, which has the lowest asking price of single-family homes available on the island, has 960 square feet of living space. "It's a cute little cottage that probably needs about $100,000 worth of renovation work," Rill said. "It needs a kitchen and bath upgrade at least. But the house next door was sold for $1 million about a year-and-a-half ago.
"It's priced to entice," said Rill, who has shown the house to several potential buyers the past few weeks.
Rill describes the Park Avenue house, with more than 2,100 square feet, as "more substantial" and less in need of upgrading.
"I think it's in move-in condition," he said. "But even homes priced at $10 million or more need updating, unless they are brand new."
Rill said he does not see the spate of $1.5 million and less listing prices lasting long.
"Prices will be heading north again, I believe," he said, but added that property owners realize that setting a realistic, competitive asking price is essential. "My guess is that this price category, under $1.5 million, will probably evaporate by next year.
"Maybe a house that's $2.5 million should be at $1.8 (million) or lower" he said. "There shouldn't be air for negotiation in setting a price. The only air should be in the tires."
Monday, June 22, 2009
Monday, June 15, 2009
Palm Beach Latest Sale
Palm Beach Latest Sale
233 Tangier Avenue - at 640 per square foot - Sold for $2,850,000 !!!!
233 Tangier Avenue - at 640 per square foot - Sold for $2,850,000 !!!!
Tuesday, June 9, 2009
"TSUNAMI" of FORECLOSURES
"TSUNAMI" of FORECLOSURES
Foreclosures soar in South Florida in April
Job losses fuel continuing surge in South Florida foreclosures
By Paul Owers | South Florida Sun Sentinel
May 13, 2009
Broward County had 10,305 homeowners in some stage of foreclosure in April, more than twice the 4,599 in March and nearly double from a year ago, according to figures being released today by RealtyTrac of Irvine, Calif., a foreclosure tracking firm.
Broward has the state's third-highest foreclosure rate, with one in every 78 households. Only Osceola and Lee counties are worse.
Palm Beach County had 2,846 residents in some stage of foreclosure last month, nearly double the 1,509 in March and 44 percent higher than a year ago.
One in every 135 Florida households received a foreclosure filing last month, roughly three times the national average. Nationwide, it was one in every 374 households, the highest monthly rate since RealtyTrac began its report in January 2005.
"I don't think the foreclosure situation will improve until the employment picture improves" said L. Keith White, president of Reinhold P. Wolff Economic Research in Oakland Park.
South Florida's foreclosure outlook likely won't get better until late 2010, after the batch of bad loans gradually is replaced with new mortgages given to qualified buyers, said Mike Larson, a housing analyst with Weiss Research in Jupiter.
*****
Prices at 2002 Levels - Still to Fall
First-quarter national home prices fall back to 2002 levels
By J.W. ELPHINSTONE, AP
Tuesday, May 26, 2009
NEW YORK — National home prices are at levels not seen since the 2002 Winter Olympics, but a closer look at a housing index released Tuesday shows real estate is indeed local with some prices in certain cities falling to pre-2000 values.
The Standard & Poor's/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter, the most in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.
"By our estimation, the composite 20-city index is perhaps two-thirds of the way through its ultimate total decline in this cycle," according to Joshua Shapiro, chief U.S. economist for MFR Inc.
It's hard to believe it could get much worse for homeowners in Detroit. Homes there are worth what they sold for in 1995. And while that's good news for homebuyers, the implosion of the auto industry and economic fallout means fewer buyers have the money to qualify for a mortgage.
"I feel like houses here are free," said Detroit area real estate agent Rose Marie Jouan with Re/Max Showcase Homes. Her house that she sold in 2004 for $200,000 is on the sales block, bank-owned, for $86,000.
In Phoenix and Las Vegas, where prices have plunged by half since their peaks, home values have receded to levels not seen since the beginning of the real estate boom. Phoenix prices are at early 2001 levels and Las Vegas values hover at mid-2002 prices.
Also, the rates of annual decline for the 10- and 20-city indexes slowed in March, the second straight month they didn't set record price drops. The 20-city index fell by 18.7 percent from the year before and the 10-city index lost 18.6 percent.
Still, there are no signs home prices nationally have hit bottom.
"We see no evidence that a recovery in home prices has begun" said David M. Blitzer, chairman of the S&P index committee.
All 20 cities showed monthly and annual price declines, with nine setting annual records. Fifteen cities posted double-digit drops and Phoenix, Las Vegas and San Francisco recorded declines of more than 30 %.
Minneapolis posted a 6.1 percent decline from February to March, the biggest monthly drop on record for any metros in the indexes. Ron Peltier, chairman and chief executive of HomeServices of America, attributed the drop to a jump in distressed sales in March 2009.
*********************
By J.W. ELPHINSTONE, AP
Tuesday, May 26, 2009
NEW YORK — National home prices are at levels not seen since the 2002 Winter Olympics, but a closer look at a housing index released Tuesday shows real estate is indeed local with some prices in certain cities falling to pre-2000 values.
The Standard & Poor's/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter, the most in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.
"By our estimation, the composite 20-city index is perhaps two-thirds of the way through its ultimate total decline in this cycle," according to Joshua Shapiro, chief U.S. economist for MFR Inc.
It's hard to believe it could get much worse for homeowners in Detroit. Homes there are worth what they sold for in 1995. And while that's good news for homebuyers, the implosion of the auto industry and economic fallout means fewer buyers have the money to qualify for a mortgage.
"I feel like houses here are free," said Detroit area real estate agent Rose Marie Jouan with Re/Max Showcase Homes. Her house that she sold in 2004 for $200,000 is on the sales block, bank-owned, for $86,000.
In Phoenix and Las Vegas, where prices have plunged by half since their peaks, home values have receded to levels not seen since the beginning of the real estate boom. Phoenix prices are at early 2001 levels and Las Vegas values hover at mid-2002 prices.
Also, the rates of annual decline for the 10- and 20-city indexes slowed in March, the second straight month they didn't set record price drops. The 20-city index fell by 18.7 percent from the year before and the 10-city index lost 18.6 percent.
Still, there are no signs home prices nationally have hit bottom.
"We see no evidence that a recovery in home prices has begun" said David M. Blitzer, chairman of the S&P index committee.
All 20 cities showed monthly and annual price declines, with nine setting annual records. Fifteen cities posted double-digit drops and Phoenix, Las Vegas and San Francisco recorded declines of more than 30 %.
Minneapolis posted a 6.1 percent decline from February to March, the biggest monthly drop on record for any metros in the indexes. Ron Peltier, chairman and chief executive of HomeServices of America, attributed the drop to a jump in distressed sales in March 2009.
*********************
Palm Beach STORE CLOSINGS
Palm Beach island businesses that closed during the season:
RESTAURANTS:
Closed:
* Beach House Bistro (possibly temporary)
* Capri Blu restaurant
* Epicurean gourmet grocery
* Market Salamander gourmet grocery
Shops
Closed:
* Christian Dior
* Coach
* Emanuel Ungaro
* First Light Gallery
* Mister
* Rose Penn antiques
RESTAURANTS:
Closed:
* Beach House Bistro (possibly temporary)
* Capri Blu restaurant
* Epicurean gourmet grocery
* Market Salamander gourmet grocery
Shops
Closed:
* Christian Dior
* Coach
* Emanuel Ungaro
* First Light Gallery
* Mister
* Rose Penn antiques
Monday, June 8, 2009
Palm Beach Latest Sale
1431 N Ocean Way - Sold at $900,100 for a $1,6 Mill. Market Value - at $223 per square foot !!!
Palm Beach Latest Sale
Palm Beach Latest Sale
1436 N Ocean Way - Sold at $281 per square foot - SALE PRICE in April 2009 was $1,300,000 for a Total Market Value of $2 Mill. !!!
1436 N Ocean Way - Sold at $281 per square foot - SALE PRICE in April 2009 was $1,300,000 for a Total Market Value of $2 Mill. !!!
Palm Beach Latest Sale
Palm Beach Latest Sale
229 Ridgeview Drive - Sold at $452 per square foot - SALE PRICE: $880,000 for a $1,5 Mill. Total Market Value !
229 Ridgeview Drive - Sold at $452 per square foot - SALE PRICE: $880,000 for a $1,5 Mill. Total Market Value !
Tuesday, May 12, 2009
PALM BEACH - Latest Home SALE
216 Bahama Lane
Total Market Value $2,8 Million - SOLD for $1,650,000 !!!!!
This is a sale at $471 per square foot!
********************************************
Total Market Value $2,8 Million - SOLD for $1,650,000 !!!!!
This is a sale at $471 per square foot!
********************************************
Wednesday, April 29, 2009
Home prices in Palm Beach, Broward down 30 percent
Home prices in Palm Beach, Broward down 30 percent
Posted by Paul Owers on April 28, 2009 01:37 PM
A widely respected index released today shows -- brace yourself, sellers -- more broad price declines of single-family homes nationwide.
But there is at least this: the rate of decline is easing.
Standard & Poor's Case-Shiller Home Price Index, a measure of prices in 20 major cities, fell 18.6 percent in February from February 2008. Prices now are what they were in 2003.
But for the first time in 16 months, the drop didn't set a record.
In metropolitan Miami, which includes Broward and Palm Beach counties, year-over-year prices fell 29.5 percent. South Florida prices have fallen 45 percent from their peak in December 2006.
The index is considered a strong measure of home prices because it examines price changes of the same property over time, instead of calculating a median price of homes sold during the month, as the Florida Association of Realtors does.
***
Posted by Paul Owers on April 28, 2009 01:37 PM
A widely respected index released today shows -- brace yourself, sellers -- more broad price declines of single-family homes nationwide.
But there is at least this: the rate of decline is easing.
Standard & Poor's Case-Shiller Home Price Index, a measure of prices in 20 major cities, fell 18.6 percent in February from February 2008. Prices now are what they were in 2003.
But for the first time in 16 months, the drop didn't set a record.
In metropolitan Miami, which includes Broward and Palm Beach counties, year-over-year prices fell 29.5 percent. South Florida prices have fallen 45 percent from their peak in December 2006.
The index is considered a strong measure of home prices because it examines price changes of the same property over time, instead of calculating a median price of homes sold during the month, as the Florida Association of Realtors does.
***
Palm Beach COACH Store Closes !
Coach store on Worth Avenue closes after two years in Palm Beach
By ROBERT JANJIGIAN
Daily News Fashion Editor
Tuesday, April 28, 2009
Coach, the New York City-headquartered leathergoods purveyor, has closed its 2-year-old Worth Avenue store.
The store, 255 Worth Ave., was shuttered for good Friday evening, with windows papered over by Saturday morning, an adjacent retail tenant reported.
A sign in the door announces the closure and invites shoppers to visit Coach locations at Town Center in Boca Raton and The Gardens mall in Palm Beach Gardens.
"We've decided to close our Worth Avenue location as the returns we were achieving were not up to Coach standards of excellence," a company spokesperson said.
In addition to closing its Worth Avenue location, Coach also shuttered its stores in Greenwich, Conn.; Green Valley Ranch, Nev.; and Embarcadero Center in San Francisco.
"There are always changes on the Avenue, especially at this time of year," said Sherry Frankel, president of the Worth Avenue Association. "It is surprising that they (Coach) decided to close after such a brief time here."
"We are always sad to see any business leave but look forward to welcoming a 'fresh' tenant for this prime retail space," Frankel said.
By ROBERT JANJIGIAN
Daily News Fashion Editor
Tuesday, April 28, 2009
Coach, the New York City-headquartered leathergoods purveyor, has closed its 2-year-old Worth Avenue store.
The store, 255 Worth Ave., was shuttered for good Friday evening, with windows papered over by Saturday morning, an adjacent retail tenant reported.
A sign in the door announces the closure and invites shoppers to visit Coach locations at Town Center in Boca Raton and The Gardens mall in Palm Beach Gardens.
"We've decided to close our Worth Avenue location as the returns we were achieving were not up to Coach standards of excellence," a company spokesperson said.
In addition to closing its Worth Avenue location, Coach also shuttered its stores in Greenwich, Conn.; Green Valley Ranch, Nev.; and Embarcadero Center in San Francisco.
"There are always changes on the Avenue, especially at this time of year," said Sherry Frankel, president of the Worth Avenue Association. "It is surprising that they (Coach) decided to close after such a brief time here."
"We are always sad to see any business leave but look forward to welcoming a 'fresh' tenant for this prime retail space," Frankel said.
Economy falls more than expected
Economy falls more than expected
The nation's gross domestic product fell 6.1% in the first quarter -- nearly the same pace as the end of 2008, and a much sharper drop than expected.
By Chris Isidore, CNN
April 29, 2009
NEW YORK (CNNMoney.com) -- The U.S. economy shrank at a pace of 6.1% in the first quarter -- almost as much as it did in the fourth quarter of 2008, according to a government report Wednesday.
The drop was much worse than expected. According to economists surveyed by Briefing.com, expectations were for a drop of 4.7% in gross domestic product, the broadest measure of the nation's economic activity, from a year ago.
The first quarter decline was the second biggest drop recorded in 26 years, behind only the fourth quarter reading. GDP fell 6.3% in the last three months of last year.
Still, investors didn't appear to be too upset by the news. Stocks rose modestly after the opening bell Wednesday.
While the overall GDP figure was disappointing, there were some signs of improvement in the report's other readings.
Purchases by individuals rose at an annual 2.2% rate, the first time personal spending rose since the second quarter of 2008. A smaller trade gap also limited the rate of economic decline.
But businesses pulled back on spending a great deal in the first quarter, as purchases of equipment and software declined at a 34% annual rate, the sharpest decline in 50 years. This drop accounted for 2.6 percentage points of the overall decline in GDP.
Businesses also slashed their inventories by more than $100 billion during the quarter, the biggest drop on record. That contributed another 2.8 percentage points to the drop in GDP. State and local governments also cut back on spending.
Robert Brusca of FAO Economics said the huge drop in inventories is good news for the economy going forward, because it will force businesses to start ramping up production again quickly once there are more signs of increased demand from consumers.
So even though the declines in GDP reported in the fourth and first quarter were similar, Brusca thinks this latest report is far more positive.
"This is the best minus 6% reading we've ever had," he said.
Wachovia economist Adam York said the sharp plunge in inventories needed to take place in order for the economy to be able to turn around.
Now that businesses have made that adjustment, York said there could be growth in the overall economy as soon as the second quarter. But he cautioned that growth was more likely to resume in the second half of this year.
"We're in the light at the end of the tunnel camp," he said. "This sets us up for a traditional business cycle recovery."
The nation's gross domestic product fell 6.1% in the first quarter -- nearly the same pace as the end of 2008, and a much sharper drop than expected.
By Chris Isidore, CNN
April 29, 2009
NEW YORK (CNNMoney.com) -- The U.S. economy shrank at a pace of 6.1% in the first quarter -- almost as much as it did in the fourth quarter of 2008, according to a government report Wednesday.
The drop was much worse than expected. According to economists surveyed by Briefing.com, expectations were for a drop of 4.7% in gross domestic product, the broadest measure of the nation's economic activity, from a year ago.
The first quarter decline was the second biggest drop recorded in 26 years, behind only the fourth quarter reading. GDP fell 6.3% in the last three months of last year.
Still, investors didn't appear to be too upset by the news. Stocks rose modestly after the opening bell Wednesday.
While the overall GDP figure was disappointing, there were some signs of improvement in the report's other readings.
Purchases by individuals rose at an annual 2.2% rate, the first time personal spending rose since the second quarter of 2008. A smaller trade gap also limited the rate of economic decline.
But businesses pulled back on spending a great deal in the first quarter, as purchases of equipment and software declined at a 34% annual rate, the sharpest decline in 50 years. This drop accounted for 2.6 percentage points of the overall decline in GDP.
Businesses also slashed their inventories by more than $100 billion during the quarter, the biggest drop on record. That contributed another 2.8 percentage points to the drop in GDP. State and local governments also cut back on spending.
Robert Brusca of FAO Economics said the huge drop in inventories is good news for the economy going forward, because it will force businesses to start ramping up production again quickly once there are more signs of increased demand from consumers.
So even though the declines in GDP reported in the fourth and first quarter were similar, Brusca thinks this latest report is far more positive.
"This is the best minus 6% reading we've ever had," he said.
Wachovia economist Adam York said the sharp plunge in inventories needed to take place in order for the economy to be able to turn around.
Now that businesses have made that adjustment, York said there could be growth in the overall economy as soon as the second quarter. But he cautioned that growth was more likely to resume in the second half of this year.
"We're in the light at the end of the tunnel camp," he said. "This sets us up for a traditional business cycle recovery."
Thursday, April 16, 2009
The Great Recession
The Great Recession: America Becomes Thrift Nation
By NANCY GIBBS, TIME, Wednesday, Apr. 15, 2009
... sometimes we change because we have no choice...
Now we're stripping down and starting over.
Nearly half say their economic status declined this year, and 57% now think the American Dream is harder to achieve.
Unlike any other downturn since the 1930s, this one has affected everyone, either the fact of it or the fear of it. Even when prosperity returns, 61% predict, they'll continue to spend less than they did before.
Among people earning less than $50,000 a year — roughly half of U.S. households — 34% have not gone to the doctor because of the cost, 31% have been out of work at some point, and 13% have been hungry.
At the same time, 4 in 10 people earning more than $100,000 say they are buying more store brands, 36% are using coupons more, and 39% have postponed or canceled a vacation to save money. Forty percent of people at all income levels say they feel anxious, 32% have trouble sleeping, and 20% are depressed. After a season of big news, of war and storms and swindlers, pirates and poison peanut butter, 43% are watching the news even more, taking the medicine even if it tastes bad because skipping it could be risky.
By NANCY GIBBS, TIME, Wednesday, Apr. 15, 2009
... sometimes we change because we have no choice...
Now we're stripping down and starting over.
Nearly half say their economic status declined this year, and 57% now think the American Dream is harder to achieve.
Unlike any other downturn since the 1930s, this one has affected everyone, either the fact of it or the fear of it. Even when prosperity returns, 61% predict, they'll continue to spend less than they did before.
Among people earning less than $50,000 a year — roughly half of U.S. households — 34% have not gone to the doctor because of the cost, 31% have been out of work at some point, and 13% have been hungry.
At the same time, 4 in 10 people earning more than $100,000 say they are buying more store brands, 36% are using coupons more, and 39% have postponed or canceled a vacation to save money. Forty percent of people at all income levels say they feel anxious, 32% have trouble sleeping, and 20% are depressed. After a season of big news, of war and storms and swindlers, pirates and poison peanut butter, 43% are watching the news even more, taking the medicine even if it tastes bad because skipping it could be risky.
Foreclosures, U.S.
Foreclosure filings jump 24%
March and first-quarter total filings were the highest monthly and quarterly totals on record. Repossessions fall 3%.
By Julianne Pepitone, CNN
April 16, 2009
NEW YORK (CNNMoney.com) -- Foreclosures skyrocketed in March and the first quarter of 2008 to their highest levels on record as banks lifted moratoria on filings.
Foreclosure filings - which include default papers, auction sale notices and repossessions - reached 803,489 in the first quarter, according to a report released Thursday by RealtyTrac, on online marketer of foreclosed properties. That is a 24% jump over a year earlier and a 9% increase compared to the previous quarter.
The March and first quarter were the highest monthly and quarterly totals since RealtyTrac began reporting in January 2005.
"In the month of March we saw a record level of foreclosure activity - the number of households that received a foreclosure filing was more than 12% higher than the next highest month on record," said James J. Saccacio, chief executive officer of RealtyTrac, in a prepared statement.
Foreclosures have hit the economy hard. Housing prices have plummeted and some homeowners are severely underwater - meaning they owe more than their homes are worth. That can remove the incentive to keep up with mortgage payments.
Amid mass layoffs and pay cuts, soaring unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Federal Reserve Bank of Boston.
Worst-hit states
Five states accounted for nearly 60% of the total foreclosure activity in the first quarter: In California, Florida, Arizona, Nevada and Illinois, 479,516 properties received foreclosure filings.
California alone, with 230,915 filings in the first quarter, accounted for nearly 29% of the total. The number of foreclosure filings in the state increased 35% from the fourth quarter and 36% from the year-ago period.
In March, California had 107,785 total filings - a jump of 33% from February and almost 67% from a year ago.
Florida's total filings in the first quarter fell 12% from the fourth quarter, but the state's 119,220 were still the second-highest in the country.
March and first-quarter total filings were the highest monthly and quarterly totals on record. Repossessions fall 3%.
By Julianne Pepitone, CNN
April 16, 2009
NEW YORK (CNNMoney.com) -- Foreclosures skyrocketed in March and the first quarter of 2008 to their highest levels on record as banks lifted moratoria on filings.
Foreclosure filings - which include default papers, auction sale notices and repossessions - reached 803,489 in the first quarter, according to a report released Thursday by RealtyTrac, on online marketer of foreclosed properties. That is a 24% jump over a year earlier and a 9% increase compared to the previous quarter.
The March and first quarter were the highest monthly and quarterly totals since RealtyTrac began reporting in January 2005.
"In the month of March we saw a record level of foreclosure activity - the number of households that received a foreclosure filing was more than 12% higher than the next highest month on record," said James J. Saccacio, chief executive officer of RealtyTrac, in a prepared statement.
Foreclosures have hit the economy hard. Housing prices have plummeted and some homeowners are severely underwater - meaning they owe more than their homes are worth. That can remove the incentive to keep up with mortgage payments.
Amid mass layoffs and pay cuts, soaring unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Federal Reserve Bank of Boston.
Worst-hit states
Five states accounted for nearly 60% of the total foreclosure activity in the first quarter: In California, Florida, Arizona, Nevada and Illinois, 479,516 properties received foreclosure filings.
California alone, with 230,915 filings in the first quarter, accounted for nearly 29% of the total. The number of foreclosure filings in the state increased 35% from the fourth quarter and 36% from the year-ago period.
In March, California had 107,785 total filings - a jump of 33% from February and almost 67% from a year ago.
Florida's total filings in the first quarter fell 12% from the fourth quarter, but the state's 119,220 were still the second-highest in the country.
Monday, April 13, 2009
Latest Palm Beach Home Sales
Latest Palm Beach Home Sales
250 Pendleton - March 2009 - $3,000,000 at $599 per sq. ft. (Sold in Feb 2005 for $3,500,000)
209 Seaspray - March 2009 - $3,900,000 (Asking $4,750,000) Historic House ($780 per sq. ft.)
269 Pendleton - February 2009 - $3,550,000 Foreclosure - SALE at $617 per sq. ft.
402 Primavera - February 2009 - $2,000,000 - SALE at $333 per sq.ft.
250 Pendleton - March 2009 - $3,000,000 at $599 per sq. ft. (Sold in Feb 2005 for $3,500,000)
209 Seaspray - March 2009 - $3,900,000 (Asking $4,750,000) Historic House ($780 per sq. ft.)
269 Pendleton - February 2009 - $3,550,000 Foreclosure - SALE at $617 per sq. ft.
402 Primavera - February 2009 - $2,000,000 - SALE at $333 per sq.ft.
Monday, April 6, 2009
Madoff mansion faces decline in estimated value, from $9.4M to $7.45M
Madoff mansion faces decline in estimated value, from $9.4M to $7.45M
By MEGAN V. WINSLOW, Daily News
Sunday, April 05, 2009
Just like most everywhere else, 410 N. Lake Way is worth less this year than it was last year.
A property appraisal obtained by the U.S. Marshals Service last month revealed that Bernard Madoff's waterfront Palm Beach mansion is now valued at $7.45 million compared to $9.4 million last year, according to prosecutors' application for the warrant used to seize the home last week.
The decline in estimated value failed to surprise Roger Plevin, an agent with local Leibowitz Realty Group.
"That's not unusual for this market," Plevin said.
The Madoffs purchased 410 N. Lake Way, a five-bedroom, seven-bathroom home, for $3.8 million in March 1994 from owner Michael Burrows, who renovated it.
By MEGAN V. WINSLOW, Daily News
Sunday, April 05, 2009
Just like most everywhere else, 410 N. Lake Way is worth less this year than it was last year.
A property appraisal obtained by the U.S. Marshals Service last month revealed that Bernard Madoff's waterfront Palm Beach mansion is now valued at $7.45 million compared to $9.4 million last year, according to prosecutors' application for the warrant used to seize the home last week.
The decline in estimated value failed to surprise Roger Plevin, an agent with local Leibowitz Realty Group.
"That's not unusual for this market," Plevin said.
The Madoffs purchased 410 N. Lake Way, a five-bedroom, seven-bathroom home, for $3.8 million in March 1994 from owner Michael Burrows, who renovated it.
Sunday, April 5, 2009
Struggling Palm Beach - Trying to SURVIVE
Struggling Palm Beach retailers eye lower rents from landlords
By MEGAN V. WINSLOW, Daily News
April 04, 2009
Concerned the economic downturn could eat away more of Palm Beach's retail landscape, some small business owners are seeking to band together behind a unified front.
"We were a town built upon extravagance, so when the extravagance has to stop while the world regroups, we don't have a slow trickle-down. We are at a dead stop in this town," Clarfeld said.
"In times like this, we look at other communities and see what they're doing," he said.
"I don't think there's a miraculous solution for any of us," Mirroir said. "If the landlords would be a little lenient and prepared to work with people, that would be one of the best solutions."
"It's difficult right now," Torres said. "Some tenants are hanging in there. Some are making a go of it and some are not."
Some of the struggling tenants have requested concessions, and Torres' Tricony Via Corp. is working with them as much as it can, he said.
"It's difficult right now," Torres said. "Some tenants are hanging in there. Some are making a go of it and some are not."
Some of the struggling tenants have requested concessions, and Torres' Tricony Via Corp. is working with them as much as it can, he said.
"Anything that anyone can come up with I'm behind," she said. "I'm just looking for a solution to be able to survive."
By MEGAN V. WINSLOW, Daily News
April 04, 2009
Concerned the economic downturn could eat away more of Palm Beach's retail landscape, some small business owners are seeking to band together behind a unified front.
"We were a town built upon extravagance, so when the extravagance has to stop while the world regroups, we don't have a slow trickle-down. We are at a dead stop in this town," Clarfeld said.
"In times like this, we look at other communities and see what they're doing," he said.
"I don't think there's a miraculous solution for any of us," Mirroir said. "If the landlords would be a little lenient and prepared to work with people, that would be one of the best solutions."
"It's difficult right now," Torres said. "Some tenants are hanging in there. Some are making a go of it and some are not."
Some of the struggling tenants have requested concessions, and Torres' Tricony Via Corp. is working with them as much as it can, he said.
"It's difficult right now," Torres said. "Some tenants are hanging in there. Some are making a go of it and some are not."
Some of the struggling tenants have requested concessions, and Torres' Tricony Via Corp. is working with them as much as it can, he said.
"Anything that anyone can come up with I'm behind," she said. "I'm just looking for a solution to be able to survive."
REPOSSESSION BUSINESS heats up
Repo business heats up as the economy cools down
By Jim Stratton | Orlando Sentinel
April 5, 2009
Times are good for the repo man.
When the bubble bursts, the market sinks and the jobs vanish, he's there to pick up the pieces — and haul them away on a flatbed.
The evidence sits outside Ron Hulbert's office, where six motor homes are squeezed onto his lot. It's parked at Orlando Executive Airport, where a $6 million Gulfstream jet sulks after being repossessed from a development company that fell behind on its payments.
When the economy cools down, repo heats up.
By Jim Stratton | Orlando Sentinel
April 5, 2009
Times are good for the repo man.
When the bubble bursts, the market sinks and the jobs vanish, he's there to pick up the pieces — and haul them away on a flatbed.
The evidence sits outside Ron Hulbert's office, where six motor homes are squeezed onto his lot. It's parked at Orlando Executive Airport, where a $6 million Gulfstream jet sulks after being repossessed from a development company that fell behind on its payments.
When the economy cools down, repo heats up.
ROUGH SAILING - FLORIDA
Tough economy means big business for Fort Lauderdale boat repossession company
National Liquidators had orders to reel in 3,066 vessels in 2008,
the most in 21 years handling boat repossessions and auctions.
By Arlene Satchell | South Florida Sun-Sentinel
April 2, 2009
Rough sailing for South Florida boat dealers means big business for a Fort Lauderdale company that takes boats from cash-strapped owners.
National Liquidators had orders to reel in 3,066 vessels in 2008, the most in 21 years handling boat repossessions and auctions.
The company's highest profile catch came Wednesday when it hooked the jailed financier Bernard Madoff's 55-foot luxury fishing boat for federal authorities. National Maritime Services, its subsidiary that handles boat seizures for the government, impounded the custom-built 1969 Rybovich vessel valued at $2.2 million. It'll be sold at auction to help repay investors Madoff defrauded as part of his $65 billion Ponzi scheme.
"We repo four to five boats a day in South Florida," President Robert 'Bob' Toney said.
This year, about 380 boats on average are being repossessed monthly and that could jump to more than 400, he said.
National also operates recovery sites in California and Ohio and is considered the nation's largest boat recovery and auction company.
While repo boats are selling, which is a bright spot for the marine industry, some worry about negative effects.
"We might be bringing some new people into boating, but in the long term it's [repo sales] not helping the local marine economy that much," said Frank Herhold, executive director of the Marine Industries Association of South Florida in Fort Lauderdale. "It's not a story with a happy ending."
National Liquidators had orders to reel in 3,066 vessels in 2008,
the most in 21 years handling boat repossessions and auctions.
By Arlene Satchell | South Florida Sun-Sentinel
April 2, 2009
Rough sailing for South Florida boat dealers means big business for a Fort Lauderdale company that takes boats from cash-strapped owners.
National Liquidators had orders to reel in 3,066 vessels in 2008, the most in 21 years handling boat repossessions and auctions.
The company's highest profile catch came Wednesday when it hooked the jailed financier Bernard Madoff's 55-foot luxury fishing boat for federal authorities. National Maritime Services, its subsidiary that handles boat seizures for the government, impounded the custom-built 1969 Rybovich vessel valued at $2.2 million. It'll be sold at auction to help repay investors Madoff defrauded as part of his $65 billion Ponzi scheme.
"We repo four to five boats a day in South Florida," President Robert 'Bob' Toney said.
This year, about 380 boats on average are being repossessed monthly and that could jump to more than 400, he said.
National also operates recovery sites in California and Ohio and is considered the nation's largest boat recovery and auction company.
While repo boats are selling, which is a bright spot for the marine industry, some worry about negative effects.
"We might be bringing some new people into boating, but in the long term it's [repo sales] not helping the local marine economy that much," said Frank Herhold, executive director of the Marine Industries Association of South Florida in Fort Lauderdale. "It's not a story with a happy ending."
Falling Prices Draw First-Time Home Buyers
Falling Prices Draw First-Time Home Buyers
NY Times, April 3, 2009
Figures released last week by the National Association of Realtors show that sales of existing homes across the country rose 5.1 percent in February, with much of the increase concentrated in foreclosed homes bought for less than $300,000. Even with tighter borrowing restrictions, many families used to renting are discovering that they can afford to own.
“They are the most active participants right now because they don’t have the burden of having to sell their old homes,” said James Diffley, a managing director at IHS Global Insight, a research firm. “You have a bunch of young people who were forced to sit on the sidelines because houses were so darn expensive, and now they’re starting to come in.”
Real estate agents in Arizona, Florida, Nevada and other states hit hard by the bust say they began to notice rising interest among first-time buyers a few months ago, as prices dropped by more than a third.
Ms. Goldman - Asked if she felt vindicated — rewarded for saving when so many others spent — she said no. “It’s sad that for me to buy a house, the economy had to be like it is,” she said.
Sitting on her couch, overlooking the pool, Ms. Goldman said she feared that the drop in prices would draw back the same investors who created the housing bubble in the first place. Real estate agents said this was already happening, even as the wave of foreclosures and evicted families would most likely continue.
“It’s not worth it in the end,” Ms. Goldman said, adding, “It’s unfortunate that I have to build my happiness on top of tears.”
NY Times, April 3, 2009
Figures released last week by the National Association of Realtors show that sales of existing homes across the country rose 5.1 percent in February, with much of the increase concentrated in foreclosed homes bought for less than $300,000. Even with tighter borrowing restrictions, many families used to renting are discovering that they can afford to own.
“They are the most active participants right now because they don’t have the burden of having to sell their old homes,” said James Diffley, a managing director at IHS Global Insight, a research firm. “You have a bunch of young people who were forced to sit on the sidelines because houses were so darn expensive, and now they’re starting to come in.”
Real estate agents in Arizona, Florida, Nevada and other states hit hard by the bust say they began to notice rising interest among first-time buyers a few months ago, as prices dropped by more than a third.
Ms. Goldman - Asked if she felt vindicated — rewarded for saving when so many others spent — she said no. “It’s sad that for me to buy a house, the economy had to be like it is,” she said.
Sitting on her couch, overlooking the pool, Ms. Goldman said she feared that the drop in prices would draw back the same investors who created the housing bubble in the first place. Real estate agents said this was already happening, even as the wave of foreclosures and evicted families would most likely continue.
“It’s not worth it in the end,” Ms. Goldman said, adding, “It’s unfortunate that I have to build my happiness on top of tears.”
Saturday, March 28, 2009
THE STORY behind the FLORIDA SALES NUMBERS
The story behind Florida’s new sales numbers
By KEVIN BRASS, NY Times
Florida, the most popular spot in the U.S. for foreign buyers, saw the number of transactions rise in January, even as the rest of U.S. market continued to sag. Sales of existing homes rose 24 percent compared to the same month of 2008, the fifth month in a row the number of transactions rose, according to the Florida Association of Realtors.
But here’s the kicker: the median sales price for existing homes in the Sunshine State is now $139,500 compared to $206,900 a year ago. That’s a 33 percent drop… in a year.
The lower median price almost certainly reflects the volume of heavily discounted and foreclosures, the Florida association reports. And those distress sales may also explain the increase in transactions.
Meanwhile, the National Association of Realtors reports sales of existing homes in the U.S. dropped to a 12 year low in January, and the median price is down 26 percent from its peak in 2006. The S&P/Case-Shiller Home Price Index found prices were down 18.2 percent in the fourth quarter of 2008 compared to the same period of 2007.
And an index that tracks California luxury homes shows that even top end properties continued to slide, led by the San Diego area where prices fell 8.3 percent in the last year.
***
By KEVIN BRASS, NY Times
Florida, the most popular spot in the U.S. for foreign buyers, saw the number of transactions rise in January, even as the rest of U.S. market continued to sag. Sales of existing homes rose 24 percent compared to the same month of 2008, the fifth month in a row the number of transactions rose, according to the Florida Association of Realtors.
But here’s the kicker: the median sales price for existing homes in the Sunshine State is now $139,500 compared to $206,900 a year ago. That’s a 33 percent drop… in a year.
The lower median price almost certainly reflects the volume of heavily discounted and foreclosures, the Florida association reports. And those distress sales may also explain the increase in transactions.
Meanwhile, the National Association of Realtors reports sales of existing homes in the U.S. dropped to a 12 year low in January, and the median price is down 26 percent from its peak in 2006. The S&P/Case-Shiller Home Price Index found prices were down 18.2 percent in the fourth quarter of 2008 compared to the same period of 2007.
And an index that tracks California luxury homes shows that even top end properties continued to slide, led by the San Diego area where prices fell 8.3 percent in the last year.
***
Tuesday, March 24, 2009
Palm Beach County home sales up 33% as prices fall 34% from '08
Palm Beach County home sales up 33% as prices fall 34% from '08
By JEFF OSTROWSKI, Palm Beach Post
Monday, March 23, 2009
Palm Beach County home prices continued to fall in February, but sales spiked as bargain hunters snapped up foreclosures and short sales, the Florida Association of Realtors said Monday.
Though bargain properties are selling, Palm Beach County's expensive homes attract few buyers, said Steven Presson, an agent at Corcoran Group Real Estate in Palm Beach. Buyers are chasing lower-priced homes that sell for far less than they fetched in 2005 and 2006.
"There's such a surplus of that distressed property," Presson said. "The good news is at least we're seeing some stuff move. The quicker we can move that inventory, the quicker we can get back to a normal market."
Even so, Presson predicts prices won't rebound for several years.
"In the $500,000-and-above market, there's just no activity," he said.
Presson said he's telling high-end buyers to wait a few months as sellers become more realistic, advice that would be unthinkable for most Realtors.
By JEFF OSTROWSKI, Palm Beach Post
Monday, March 23, 2009
Palm Beach County home prices continued to fall in February, but sales spiked as bargain hunters snapped up foreclosures and short sales, the Florida Association of Realtors said Monday.
Though bargain properties are selling, Palm Beach County's expensive homes attract few buyers, said Steven Presson, an agent at Corcoran Group Real Estate in Palm Beach. Buyers are chasing lower-priced homes that sell for far less than they fetched in 2005 and 2006.
"There's such a surplus of that distressed property," Presson said. "The good news is at least we're seeing some stuff move. The quicker we can move that inventory, the quicker we can get back to a normal market."
Even so, Presson predicts prices won't rebound for several years.
"In the $500,000-and-above market, there's just no activity," he said.
Presson said he's telling high-end buyers to wait a few months as sellers become more realistic, advice that would be unthinkable for most Realtors.
Sunday, March 22, 2009
Palm Beach International Boat Show in Soft Market
Palm Beach International Boat Show hopes improvements buoy buyers in soft market
By MEGAN V. WINSLOW
Daily News, Saturday, March 21, 2009
According to the most recent research by the National Marine Manufacturers Association, a nonprofit in Chicago, new powerboat sales fell between 25 percent and 30 percent in 2008.
"Buying continues to remain soft during the first quarter of '09, but we are selling boats," said Thom Dammrich, NMMA president. "We're just not selling as many as we used to."
.... Tim Johnson, a broker with Palm Beach Yacht Brokerage on Royal Palm Way.
At this year's show, Johnson is representing four clients, each seriously considering the purchase of a large motor yacht.
It's a challenging time for the business, but buyers have the benefit of dealing with a number of motivated sellers, Johnson said.
By MEGAN V. WINSLOW
Daily News, Saturday, March 21, 2009
According to the most recent research by the National Marine Manufacturers Association, a nonprofit in Chicago, new powerboat sales fell between 25 percent and 30 percent in 2008.
"Buying continues to remain soft during the first quarter of '09, but we are selling boats," said Thom Dammrich, NMMA president. "We're just not selling as many as we used to."
.... Tim Johnson, a broker with Palm Beach Yacht Brokerage on Royal Palm Way.
At this year's show, Johnson is representing four clients, each seriously considering the purchase of a large motor yacht.
It's a challenging time for the business, but buyers have the benefit of dealing with a number of motivated sellers, Johnson said.
SLOW SEASON: Tourists Not Spending
SLOW SEASON: Tourists continue to visit, but they're spending less, retailers say
By ALLISON ROSS
Palm Beach Post
Sunday, March 22, 2009
It's a perfect Saturday afternoon: Chamber of Commerce weather.
On Clematis Street in West Palm Beach, couples with Starbucks frappuccinos in hand peer into the windows of Maine Cottage. Customers sip drinks at Rocco's Tacos.
In CityPlace, women with dark, oversize sunglasses push strollers past storefronts.
It's the same scene every tourist season.
Midway through this season, though, tourists are a little more reluctant to pull out their pocketbooks. There may be crowds, but there are fewer shopping bags. Cash typically spent on attractions, souvenirs, restaurants and gifts is in short supply.
"Are you kidding? There's no tourist season this year," said Renee Davidson, a waitress at Italian restaurant De Napoli on Clematis Street. "Last year it was slower, but this year it's like it's not happening."
Palm Beach County's tourist season, which runs from Thanksgiving to Easter, is a driving force in the area's economy.
Snowbirds from the Northeast and Canada flock to beaches. International travelers come for a taste of the South Florida lifestyle.
Those revenues are generally the nest eggs that businesses use to get them through the leaner summer months.
"The tourist season keeps a lot of little shops and stores and restaurants open," said Enid Atwater, a spokeswoman for the Palm Beach County Convention and Visitors Bureau.
"The county depends on travelers to keep the economic engine going, to keep our economy alive."
But this year, although visitors continue to crowd popular destinations such as CityPlace, the tourist season has been quieter than usual because of worries about the tough economy.
According to figures from Palm Beach International Airport, the number of passengers coming through the airport from November through January fell 10.2 percent, which translates to 187,180 fewer travelers.
In the same period, the number of international travelers fell 40.6 percent from the year before.
'Big challenge ahead'
While the county's hotels are doing better at filling up rooms than the rest of Florida, revenue for the county's so-called bed tax - a tax on short-term lodging - has fallen almost 15 percent since September, forcing Palm Beach County tourism agencies to slash their budgets.
"Things are going significantly slower than usual," said Jorge Pesquera, president and chief executive of the Convention and Visitors Bureau. "We have a big challenge ahead."
In January, the average hotel occupancy rate was 64 percent, down 8.2 percent from January 2008, according to Smith Travel Research Inc.
There might be even fewer travelers if hotels in the area weren't cutting their rates to entice customers. The average daily room rate fell a record 18.1 percent in January to $160.84, according to Smith Travel.
Even upscale hotels aren't immune.
"The whole industry now, it's a day-to-day situation as to how we're doing," said Christine DiRocco, director of public relations for The Ritz-Carlton in Manalapan. "People are a little bit more aware of how and when they spend their money."
DiRocco declined to talk about whether the hotel was cutting room rates to bring customers in, but did say that The Ritz-Carlton was being "competitive in trying to attract New England guests down here. You have to be open and flexible in these times."
Rick Rose, co-owner of Grandview Gardens Bed & Breakfast in West Palm Beach, said his business is down 5 percent to 10 percent.
Both DiRocco and Rose noted that a lot of people are waiting longer to book, in part because they are hoping to take advantage of last-minute offers.
"Most times, that works, because we're very nervous about filling rooms," Rose said.
Fewer gifts, smaller tabs
Even when rooms are filled, tourists are watching their wallets and budgets. As a result, businesses that rely on winter tourism are ringing up smaller sales.
For instance, CityPlace said traffic through its garages was up 12 percent in January and February, but Field of Greens general manager Susan McCann said sales have been weaker than usual.
"Business is definitely slower than normal," McCann said. "We're still seeing tourists - on weekends especially - but fewer tourists are coming in."
According to data from the Tourist Development Council of Palm Beach County, the average daily expenditure per tourist from October to December fell about 12 percent from the same period in 2007.
With the exception of entertainment, spending fell across the board. For instance, average tourists spent $27 a day in the fourth quarter of 2007 on gifts and shopping; for that period in 2008, they spent $22 on presents for themselves and the family back home.
A $60 tab for food and drinks in 2007 averaged $50 a day from October through December last year.
Atlantic Avenue in Delray Beach remains crowded, but Marjorie Ferrer, executive director of the Delray Beach Downtown Development Authority, said some of the stores on Atlantic Avenue are cutting their part-time workforce.
Ferrer said the authority is brainstorming ideas to lure visitors and is even talking about offering leniency for people who are a little late getting back to their cars when their parking meters expire.
By ALLISON ROSS
Palm Beach Post
Sunday, March 22, 2009
It's a perfect Saturday afternoon: Chamber of Commerce weather.
On Clematis Street in West Palm Beach, couples with Starbucks frappuccinos in hand peer into the windows of Maine Cottage. Customers sip drinks at Rocco's Tacos.
In CityPlace, women with dark, oversize sunglasses push strollers past storefronts.
It's the same scene every tourist season.
Midway through this season, though, tourists are a little more reluctant to pull out their pocketbooks. There may be crowds, but there are fewer shopping bags. Cash typically spent on attractions, souvenirs, restaurants and gifts is in short supply.
"Are you kidding? There's no tourist season this year," said Renee Davidson, a waitress at Italian restaurant De Napoli on Clematis Street. "Last year it was slower, but this year it's like it's not happening."
Palm Beach County's tourist season, which runs from Thanksgiving to Easter, is a driving force in the area's economy.
Snowbirds from the Northeast and Canada flock to beaches. International travelers come for a taste of the South Florida lifestyle.
Those revenues are generally the nest eggs that businesses use to get them through the leaner summer months.
"The tourist season keeps a lot of little shops and stores and restaurants open," said Enid Atwater, a spokeswoman for the Palm Beach County Convention and Visitors Bureau.
"The county depends on travelers to keep the economic engine going, to keep our economy alive."
But this year, although visitors continue to crowd popular destinations such as CityPlace, the tourist season has been quieter than usual because of worries about the tough economy.
According to figures from Palm Beach International Airport, the number of passengers coming through the airport from November through January fell 10.2 percent, which translates to 187,180 fewer travelers.
In the same period, the number of international travelers fell 40.6 percent from the year before.
'Big challenge ahead'
While the county's hotels are doing better at filling up rooms than the rest of Florida, revenue for the county's so-called bed tax - a tax on short-term lodging - has fallen almost 15 percent since September, forcing Palm Beach County tourism agencies to slash their budgets.
"Things are going significantly slower than usual," said Jorge Pesquera, president and chief executive of the Convention and Visitors Bureau. "We have a big challenge ahead."
In January, the average hotel occupancy rate was 64 percent, down 8.2 percent from January 2008, according to Smith Travel Research Inc.
There might be even fewer travelers if hotels in the area weren't cutting their rates to entice customers. The average daily room rate fell a record 18.1 percent in January to $160.84, according to Smith Travel.
Even upscale hotels aren't immune.
"The whole industry now, it's a day-to-day situation as to how we're doing," said Christine DiRocco, director of public relations for The Ritz-Carlton in Manalapan. "People are a little bit more aware of how and when they spend their money."
DiRocco declined to talk about whether the hotel was cutting room rates to bring customers in, but did say that The Ritz-Carlton was being "competitive in trying to attract New England guests down here. You have to be open and flexible in these times."
Rick Rose, co-owner of Grandview Gardens Bed & Breakfast in West Palm Beach, said his business is down 5 percent to 10 percent.
Both DiRocco and Rose noted that a lot of people are waiting longer to book, in part because they are hoping to take advantage of last-minute offers.
"Most times, that works, because we're very nervous about filling rooms," Rose said.
Fewer gifts, smaller tabs
Even when rooms are filled, tourists are watching their wallets and budgets. As a result, businesses that rely on winter tourism are ringing up smaller sales.
For instance, CityPlace said traffic through its garages was up 12 percent in January and February, but Field of Greens general manager Susan McCann said sales have been weaker than usual.
"Business is definitely slower than normal," McCann said. "We're still seeing tourists - on weekends especially - but fewer tourists are coming in."
According to data from the Tourist Development Council of Palm Beach County, the average daily expenditure per tourist from October to December fell about 12 percent from the same period in 2007.
With the exception of entertainment, spending fell across the board. For instance, average tourists spent $27 a day in the fourth quarter of 2007 on gifts and shopping; for that period in 2008, they spent $22 on presents for themselves and the family back home.
A $60 tab for food and drinks in 2007 averaged $50 a day from October through December last year.
Atlantic Avenue in Delray Beach remains crowded, but Marjorie Ferrer, executive director of the Delray Beach Downtown Development Authority, said some of the stores on Atlantic Avenue are cutting their part-time workforce.
Ferrer said the authority is brainstorming ideas to lure visitors and is even talking about offering leniency for people who are a little late getting back to their cars when their parking meters expire.
Palm Beach County's Declining Home Prices Stir the Market
Palm Beach County's declining home prices stir market
First-time buyers take advantage of bargains
By Paul Owers | South Florida Sun Sentinel
February 26, 2009
Bargain hunters have taken over South Florida's housing market.
The housing slump, entering its fourth year, is unlikely to turn around soon, real estate and economic analysts say.
Moody's Economy.com, a West Chester, Pa., research firm, expects the local housing market to remain depressed for all of 2009 and most of 2010. It forecasts home prices in Palm Beach County to hit bottom in the third quarter of next year.
... Mounting job losses are starting to hurt the housing market. "That takes away from the number of people who want to buy or can buy a house," said Chris Lafakis, an economist for Moody's.
In 2008, Palm Beach County had the nation's 64th-highest foreclosure rate, with one in every 27 homes in some stage of distress, according to RealtyTrac Inc., a foreclosure listing firm.
The Obama plan will allow Fannie Mae and Freddie Mac to refinance mortgages as long as the loan-to-value ratios are no greater than 105 percent. Under current rules, they can't guarantee home refinancing if a mortgage amounts to more than 80 percent of the home's value.
But analysts say many South Floridians still won't be able to refinance because the severe price declines here mean homeowners owe more than 105 percent of their property's value.
First-time buyers take advantage of bargains
By Paul Owers | South Florida Sun Sentinel
February 26, 2009
Bargain hunters have taken over South Florida's housing market.
The housing slump, entering its fourth year, is unlikely to turn around soon, real estate and economic analysts say.
Moody's Economy.com, a West Chester, Pa., research firm, expects the local housing market to remain depressed for all of 2009 and most of 2010. It forecasts home prices in Palm Beach County to hit bottom in the third quarter of next year.
... Mounting job losses are starting to hurt the housing market. "That takes away from the number of people who want to buy or can buy a house," said Chris Lafakis, an economist for Moody's.
In 2008, Palm Beach County had the nation's 64th-highest foreclosure rate, with one in every 27 homes in some stage of distress, according to RealtyTrac Inc., a foreclosure listing firm.
The Obama plan will allow Fannie Mae and Freddie Mac to refinance mortgages as long as the loan-to-value ratios are no greater than 105 percent. Under current rules, they can't guarantee home refinancing if a mortgage amounts to more than 80 percent of the home's value.
But analysts say many South Floridians still won't be able to refinance because the severe price declines here mean homeowners owe more than 105 percent of their property's value.
Money is Tight - West Palm Beach Home & Garden Show in Hard Economic Times
West Palm Beach Home & Garden Show adapted for budget-conscious
Affordable products on display for those staying home more during difficult times
By Paul Owers | South Florida Sun-Sentinel
March 21, 2009
.... "We're trying to be sensitive to these economic issues," said Ryan Roth, show manager.
With South Florida's housing market in the doldrums for more than three years, many homeowners are resigned to renovating their properties and staying put. Show vendors are eager to capitalize on that sentiment.
It takes six to eight hours to complete a bathroom refinishing, which costs $400 to $1,000. The work comes with a 10-year warranty.
.........their strategy was to resist the sales pitches, at least until they could see all the vendors and compare the best deals.
"Hey, money's tight," she said.
Affordable products on display for those staying home more during difficult times
By Paul Owers | South Florida Sun-Sentinel
March 21, 2009
.... "We're trying to be sensitive to these economic issues," said Ryan Roth, show manager.
With South Florida's housing market in the doldrums for more than three years, many homeowners are resigned to renovating their properties and staying put. Show vendors are eager to capitalize on that sentiment.
It takes six to eight hours to complete a bathroom refinishing, which costs $400 to $1,000. The work comes with a 10-year warranty.
.........their strategy was to resist the sales pitches, at least until they could see all the vendors and compare the best deals.
"Hey, money's tight," she said.
Friday, March 20, 2009
PALM BEACH - Luxury Retail Suffering with the Bad Economy
Worth Avenue retailers make staff reductions in response to the economy
from the Daily News
By Robert JANJIGIAN
Sunday, March 15, 2009
The two largest stores on the Avenue, Neiman Marcus and Saks Fifth Avenue, have reduced the number of employees on their payrolls, although neither would reveal the current number of employees at their island locations. Saks would not disclose the number of associates terminated at its Worth Avenue branch.
Both Neiman's and Saks announced in recent months their intentions to reduce the payroll at stores across the country in response to recently reported losses...
Sales and non-selling support positions were eliminated at the Neiman Marcus Worth Avenue branch as part of a company-wide reduction.
Several jobs were cut at the island Saks, but details were unavailable.
"In January, Saks Fifth Avenue announced a company-wide reduction in our workforce of approximately 1,100 positions, or 9 percent of our associate base," said Lori Berg, general manager of Saks' Palm Beach branch. "Saks is not providing details as to how the individual stores were affected."
Earlier this year, Tiffany & Co. offered employees who meet age criteria a retirement package to reduce overhead and costs across the chain.
Employees were also let go over the past month at Gucci's Worth Avenue store.
Van Cleef & Arpels, which recently announced its intention to relocate its 249 Worth Ave. store.
"We are paying careful attention to the current economic climate....."
from the Daily News
By Robert JANJIGIAN
Sunday, March 15, 2009
The two largest stores on the Avenue, Neiman Marcus and Saks Fifth Avenue, have reduced the number of employees on their payrolls, although neither would reveal the current number of employees at their island locations. Saks would not disclose the number of associates terminated at its Worth Avenue branch.
Both Neiman's and Saks announced in recent months their intentions to reduce the payroll at stores across the country in response to recently reported losses...
Sales and non-selling support positions were eliminated at the Neiman Marcus Worth Avenue branch as part of a company-wide reduction.
Several jobs were cut at the island Saks, but details were unavailable.
"In January, Saks Fifth Avenue announced a company-wide reduction in our workforce of approximately 1,100 positions, or 9 percent of our associate base," said Lori Berg, general manager of Saks' Palm Beach branch. "Saks is not providing details as to how the individual stores were affected."
Earlier this year, Tiffany & Co. offered employees who meet age criteria a retirement package to reduce overhead and costs across the chain.
Employees were also let go over the past month at Gucci's Worth Avenue store.
Van Cleef & Arpels, which recently announced its intention to relocate its 249 Worth Ave. store.
"We are paying careful attention to the current economic climate....."
Thursday, March 19, 2009
Luxury Palm Beach Real Estate BUST
Time for 'reality check': Palm Beach feels the downturn after some huge sales in '08
By JEFF OSTROWSKI
Palm Beach Post
Sunday, March 15, 2009
PALM BEACH — After defying gravity for years, the venerable mansion market on the island has seen a "reality check," according to the president of the Palm Beach Board of Realtors.
The median price of single-family homes sold in Palm Beach from October through December fell to $2.7 million, down 20 percent from $3.4 million in the fourth quarter of 2007, according to a Palm Beach Postanalysis of The Evans Report, prepared by attorney Les Evans.
And only 16 sales closed during the period, down from 25 deals in the fourth quarter of 2007.
Realtors acknowledge that the record-breaking real estate party of early 2008 is over. One who asked not to be named described the fourth quarter as "horrible" - and the first quarter of this year is shaping up to be even slower.
Only four single-family homes sold in Palm Beach from Jan. 1 through early March, according to the Palm Beach County property appraiser. A dozen sold during the same period last year.
"People are holding on to their money now," said Clare O'Keeffe, a real estate broker and president of the Palm Beach Board of Realtors. "Nobody knows what's happening in the stock market or the economy."
While O'Keeffe says the mansion market has taken just a temporary breather, others are less optimistic.
Doug Kass, a hedge fund manager who owns a home in Palm Beach, says the island's housing market has ground to a halt. He blames the combination of the global financial collapse and the Bernie Madoff scam, which hit hard on the island.
"I think the numbers are appreciably worse than (Evans') report shows," Kass said.
"Things couldn't get worse. You have the economy eroding. You have the stock market in disarray. And you have a major fraud that has cut a wide swath through our community."
Sudden turn in late '08
What a difference a few months make. The Palm Beach mansion market was so hot during the first seven months of 2008 that the full-year results look buoyant despite the end-of-year slump. Palm Beach saw a number of blockbuster sales, including an $81.5 million deal for Jones Apparel Group founder Sidney Kimmel's manse in April and $95 million for an estate owned by billionaire Donald Trump in July.
However, The Post's analysis of Evans' numbers shows that during the fourth quarter, even Palm Beach wasn't immune from the global financial crisis and cratering stock market. Still, Evans dismissed the fourth-quarter figures as irrelevant.
"I don't like to look at quarterly numbers," Evans said. "One quarter tends to skew it a little."
The downward trend held for the third quarter, too. Despite Trump's record-setting sale in July, the median home price in Palm Beach fell to $3.05 million in the second half of 2008, down from $3.39 million in the second half of 2007.
And seven of the 42 houses that sold in the second half of 2008 went for less than the seller had paid in the previous transaction.
The Palm Beach condo market also slowed in 2008, according to Evans. The number of sales fell to 196 in 2008 from 245 in 2007, a 20 percent drop. And the median price fell to $600,000 from $825,000, a 27 percent decline.
The decline in Palm Beach prices mirrored the fall in the broader market. For all of Palm Beach County, the median price of a single-family home plunged 27 percent from the fourth quarter of 2007 to the fourth quarter of 2008, according to the Florida Association of Realtors.
Publicly, Realtors pointed to a variety of reasons the Palm Beach market slowed. The fourth quarter is a dead time anyway, they said, and some buyers didn't want to commit so close to the presidential election.
Privately, though, several acknowledge that the downturn was deeper than they expected.
Many say luxury real estate no longer is the haven it once was.
"People used to think the rich could make it through these difficult times because they had plenty of money," said Scott Custer, chief executive of Raleigh, N.C.-based RBC Bank, which has seven offices in Palm Beach County. "But nobody's going unscathed through this downturn."
Evans' report isn't the first sign of cooling in the once-hot mansion market. The home at 756 Slope Trail in Palm Beach sold last month for $5.96 million after being marketed for as much as $10.3 million, although Evans points out that the sale price of $1,000 a square foot isn't too shabby.
In January, a 23,000-square-foot manse in Boca Raton sold for $12.9 million, after seller Dru Schmitt originally listed it for $24.9 million.
And mansion developer Frank McKinney said in late February that he has put on hold plans for two oceanfront estates in Manalapan until he sells a just-finished manse that's on the market for $29 million.
"It's a pretty scary time - I know I'm scared," McKinney said.
During Palm Beach's long boom, entry-level homes priced at less than $2 million were scarce, said Realtor John Pinson. No more.
Suddenly single-family homes are available for less than $1 million in Palm Beach.
"That's something, to have properties priced under $1 million," Pinson said. "It's been a long time since that was the case."
By JEFF OSTROWSKI
Palm Beach Post
Sunday, March 15, 2009
PALM BEACH — After defying gravity for years, the venerable mansion market on the island has seen a "reality check," according to the president of the Palm Beach Board of Realtors.
The median price of single-family homes sold in Palm Beach from October through December fell to $2.7 million, down 20 percent from $3.4 million in the fourth quarter of 2007, according to a Palm Beach Postanalysis of The Evans Report, prepared by attorney Les Evans.
And only 16 sales closed during the period, down from 25 deals in the fourth quarter of 2007.
Realtors acknowledge that the record-breaking real estate party of early 2008 is over. One who asked not to be named described the fourth quarter as "horrible" - and the first quarter of this year is shaping up to be even slower.
Only four single-family homes sold in Palm Beach from Jan. 1 through early March, according to the Palm Beach County property appraiser. A dozen sold during the same period last year.
"People are holding on to their money now," said Clare O'Keeffe, a real estate broker and president of the Palm Beach Board of Realtors. "Nobody knows what's happening in the stock market or the economy."
While O'Keeffe says the mansion market has taken just a temporary breather, others are less optimistic.
Doug Kass, a hedge fund manager who owns a home in Palm Beach, says the island's housing market has ground to a halt. He blames the combination of the global financial collapse and the Bernie Madoff scam, which hit hard on the island.
"I think the numbers are appreciably worse than (Evans') report shows," Kass said.
"Things couldn't get worse. You have the economy eroding. You have the stock market in disarray. And you have a major fraud that has cut a wide swath through our community."
Sudden turn in late '08
What a difference a few months make. The Palm Beach mansion market was so hot during the first seven months of 2008 that the full-year results look buoyant despite the end-of-year slump. Palm Beach saw a number of blockbuster sales, including an $81.5 million deal for Jones Apparel Group founder Sidney Kimmel's manse in April and $95 million for an estate owned by billionaire Donald Trump in July.
However, The Post's analysis of Evans' numbers shows that during the fourth quarter, even Palm Beach wasn't immune from the global financial crisis and cratering stock market. Still, Evans dismissed the fourth-quarter figures as irrelevant.
"I don't like to look at quarterly numbers," Evans said. "One quarter tends to skew it a little."
The downward trend held for the third quarter, too. Despite Trump's record-setting sale in July, the median home price in Palm Beach fell to $3.05 million in the second half of 2008, down from $3.39 million in the second half of 2007.
And seven of the 42 houses that sold in the second half of 2008 went for less than the seller had paid in the previous transaction.
The Palm Beach condo market also slowed in 2008, according to Evans. The number of sales fell to 196 in 2008 from 245 in 2007, a 20 percent drop. And the median price fell to $600,000 from $825,000, a 27 percent decline.
The decline in Palm Beach prices mirrored the fall in the broader market. For all of Palm Beach County, the median price of a single-family home plunged 27 percent from the fourth quarter of 2007 to the fourth quarter of 2008, according to the Florida Association of Realtors.
Publicly, Realtors pointed to a variety of reasons the Palm Beach market slowed. The fourth quarter is a dead time anyway, they said, and some buyers didn't want to commit so close to the presidential election.
Privately, though, several acknowledge that the downturn was deeper than they expected.
Many say luxury real estate no longer is the haven it once was.
"People used to think the rich could make it through these difficult times because they had plenty of money," said Scott Custer, chief executive of Raleigh, N.C.-based RBC Bank, which has seven offices in Palm Beach County. "But nobody's going unscathed through this downturn."
Evans' report isn't the first sign of cooling in the once-hot mansion market. The home at 756 Slope Trail in Palm Beach sold last month for $5.96 million after being marketed for as much as $10.3 million, although Evans points out that the sale price of $1,000 a square foot isn't too shabby.
In January, a 23,000-square-foot manse in Boca Raton sold for $12.9 million, after seller Dru Schmitt originally listed it for $24.9 million.
And mansion developer Frank McKinney said in late February that he has put on hold plans for two oceanfront estates in Manalapan until he sells a just-finished manse that's on the market for $29 million.
"It's a pretty scary time - I know I'm scared," McKinney said.
During Palm Beach's long boom, entry-level homes priced at less than $2 million were scarce, said Realtor John Pinson. No more.
Suddenly single-family homes are available for less than $1 million in Palm Beach.
"That's something, to have properties priced under $1 million," Pinson said. "It's been a long time since that was the case."
South Florida remains the toughest market in the nation
Houses stay for sale the longest in South Florida market
By Paul Owers | South Florida Sun-Sentinel
March 14, 2009
South Florida remains the toughest market in the nation for selling a house, even as big price declines here are attracting buyers.
The typical house in Palm Beach, Broward and Miami-Dade counties lingers for 193 days, according to a February report released this week by California real estate firms Real IQ and Altos Research.
That's up from 156 days last summer and well ahead of second-place Chicago, where the average house stays on the market for 180 days.
South Florida has had the nation's slowest sales rate every month since the survey began in 2007.
By Paul Owers | South Florida Sun-Sentinel
March 14, 2009
South Florida remains the toughest market in the nation for selling a house, even as big price declines here are attracting buyers.
The typical house in Palm Beach, Broward and Miami-Dade counties lingers for 193 days, according to a February report released this week by California real estate firms Real IQ and Altos Research.
That's up from 156 days last summer and well ahead of second-place Chicago, where the average house stays on the market for 180 days.
South Florida has had the nation's slowest sales rate every month since the survey began in 2007.
Thursday, March 12, 2009
Florida Real Estate Market: Busting or Adjusting?
Florida Real Estate Market: Busting or Adjusting?
from Yaerd.org
Real estate “experts” will have their subscribers believe that Florida home prices are plummeting, that investing in Florida real estate will amount to nothing but catastrophe. Many are even referring to this lapse in skyrocketing appreciation rates as a “crash.” But all the factors that contribute to a booming real estate market are still present, leaving no chance for a “Grapes of Wrath” future in store for Florida. Real estate investors have simply stopped looking to Florida because the market’s exorbitant prices are making middle-class investment less attainable.
Recent studies have yielded a more positive view of the appreciation rate decline, uncovering evidence that real estate in Florida will be AFFORDABLE once again. All the elements of a healthy real estate market are already set in place—an increasing job market, an influx of both domestic and international immigration coupled with high fertility rates, declining mortgage interest rates, and a lack of undeveloped land—that make a robust real estate market inevitable.
Now that prices are dropping, Floridians can get a higher quality property for a REASONABLE price and the lower rates will cause more people to take advantage of the abundance of jobs in areas that they would not have been able to afford mere months ago. The state has high potential for lucrative long-term investment as Florida’s growth will incite a gradual home value appreciation without driving out residents with more modest incomes. And many industry professionals see the softening as a positive, a way to cleanse the market of incompetent bandwagon developers and the SPECULATORS and FLIPPERS who were driving market prices to unaffordable highs.
from Yaerd.org
Real estate “experts” will have their subscribers believe that Florida home prices are plummeting, that investing in Florida real estate will amount to nothing but catastrophe. Many are even referring to this lapse in skyrocketing appreciation rates as a “crash.” But all the factors that contribute to a booming real estate market are still present, leaving no chance for a “Grapes of Wrath” future in store for Florida. Real estate investors have simply stopped looking to Florida because the market’s exorbitant prices are making middle-class investment less attainable.
Recent studies have yielded a more positive view of the appreciation rate decline, uncovering evidence that real estate in Florida will be AFFORDABLE once again. All the elements of a healthy real estate market are already set in place—an increasing job market, an influx of both domestic and international immigration coupled with high fertility rates, declining mortgage interest rates, and a lack of undeveloped land—that make a robust real estate market inevitable.
Now that prices are dropping, Floridians can get a higher quality property for a REASONABLE price and the lower rates will cause more people to take advantage of the abundance of jobs in areas that they would not have been able to afford mere months ago. The state has high potential for lucrative long-term investment as Florida’s growth will incite a gradual home value appreciation without driving out residents with more modest incomes. And many industry professionals see the softening as a positive, a way to cleanse the market of incompetent bandwagon developers and the SPECULATORS and FLIPPERS who were driving market prices to unaffordable highs.
Moody's: Palm Beach County to Hit Bottom in 3rd Q of 2010
The housing slump, entering its fourth year, is unlikely to turn around soon, real estate and economic analysts say.
Moody's Economy.com, a West Chester, Pa., research firm, expects the local housing market to remain depressed for all of 2009 and most of 2010. It forecasts home prices in Palm Beach County to hit bottom in the third quarter of next year.
Home shoppers now are drawn mostly to distressed properties owned by lenders or desperate sellers, real estate agents say.
.......
Moody's Economy.com, a West Chester, Pa., research firm, expects the local housing market to remain depressed for all of 2009 and most of 2010. It forecasts home prices in Palm Beach County to hit bottom in the third quarter of next year.
Home shoppers now are drawn mostly to distressed properties owned by lenders or desperate sellers, real estate agents say.
.......
Palm Beach County foreclosures see 50% jump
Palm Beach County foreclosures see 50% jump
By JEFF OSTROWSKI
Palm Beach Post Staff Writer
Wednesday, March 11, 2009
Palm Beach County's foreclosure rate jumped by more than 50 percent in February, according to numbers released Thursday by RealtyTrac, a foreclosure data firm in Irvine, Calif.
About 2,665 Palm Beach County properties were in some stage of foreclosure, up 53 percent from January and up 57 percent from February 2008.
The flood of foreclosures has sent the region's home prices plummeting - and has drawn bargain hunters who are betting that the market is near bottom.
Statewide, foreclosure activity spiked 14 percent from January. Lenders in December agreed to a 45-day voluntary moratorium on filings, but that respite ended at the end of January.
Florida, Nevada, Arizona and California had the nation's top foreclosure rates.
Among metro areas, Las Vegas was first, followed by the Cape Coral-Fort Myers area.
Nationwide, nearly 291,000 homes received at least one foreclosure-related notice last month, up 6 percent from January and 30 percent from February 2008.
"It doesn't bode well," for the beleaguered U.S. housing market, said Rick Sharga, vice president for marketing at RealtyTrac. "At least for the foreseeable future, it's going to continue to be pretty ugly."
The number of foreclosures continues to soar nationwide.....
By JEFF OSTROWSKI
Palm Beach Post Staff Writer
Wednesday, March 11, 2009
Palm Beach County's foreclosure rate jumped by more than 50 percent in February, according to numbers released Thursday by RealtyTrac, a foreclosure data firm in Irvine, Calif.
About 2,665 Palm Beach County properties were in some stage of foreclosure, up 53 percent from January and up 57 percent from February 2008.
The flood of foreclosures has sent the region's home prices plummeting - and has drawn bargain hunters who are betting that the market is near bottom.
Statewide, foreclosure activity spiked 14 percent from January. Lenders in December agreed to a 45-day voluntary moratorium on filings, but that respite ended at the end of January.
Florida, Nevada, Arizona and California had the nation's top foreclosure rates.
Among metro areas, Las Vegas was first, followed by the Cape Coral-Fort Myers area.
Nationwide, nearly 291,000 homes received at least one foreclosure-related notice last month, up 6 percent from January and 30 percent from February 2008.
"It doesn't bode well," for the beleaguered U.S. housing market, said Rick Sharga, vice president for marketing at RealtyTrac. "At least for the foreseeable future, it's going to continue to be pretty ugly."
The number of foreclosures continues to soar nationwide.....
Monday, March 9, 2009
A Gloomy Outlook for Home Sales’ Big Season
A Gloomy Outlook for Home Sales’ Big Season
...
Troubled housing markets do not rebound quickly. The first thing to turn up are sales of homes as banks and individuals acknowledge that prices are no longer what they were; some of that is already happening in California and Florida.
Home prices tend to lag sales by a couple of years. That is what happened in Massachusetts and California in the early 1990s.
How long will the current slump last?
A futures market for home prices provides one sobering forecast. Trading in contracts that track home prices in 25 metropolitan areas suggests that home prices will fall about 15 percent this year and hit bottom in 2010, according to Radar Logic, a firm that created the index on which the trading is based. The market is also predicting that the Los Angeles area is closer to the bottom than New York.
New York Times, March 7, 2009.
...
Troubled housing markets do not rebound quickly. The first thing to turn up are sales of homes as banks and individuals acknowledge that prices are no longer what they were; some of that is already happening in California and Florida.
Home prices tend to lag sales by a couple of years. That is what happened in Massachusetts and California in the early 1990s.
How long will the current slump last?
A futures market for home prices provides one sobering forecast. Trading in contracts that track home prices in 25 metropolitan areas suggests that home prices will fall about 15 percent this year and hit bottom in 2010, according to Radar Logic, a firm that created the index on which the trading is based. The market is also predicting that the Los Angeles area is closer to the bottom than New York.
New York Times, March 7, 2009.
Wednesday, February 25, 2009
Palm Beach market finally back to earth during the 4th Q of 2008
Palm Beach home prices - sales fall in 4th quarter
February 2009
After defying gravity for years, the Palm Beach mansion market finally back to earth during 4th quarter of 2008.
The Palm Beach condo market also slowed in 2008.
The number of sales fell, a 20 percent drop from 2007.
This isn’t the first sign that things have cooled in the once resilient mansion market.
The mansion at 756 Slope Trail sold this month for $5.96 million after being marketed for as much as $12 million.
February 2009
After defying gravity for years, the Palm Beach mansion market finally back to earth during 4th quarter of 2008.
The Palm Beach condo market also slowed in 2008.
The number of sales fell, a 20 percent drop from 2007.
This isn’t the first sign that things have cooled in the once resilient mansion market.
The mansion at 756 Slope Trail sold this month for $5.96 million after being marketed for as much as $12 million.
Case-Shiller index still in cliff-dive mode
Tuesday, February 24th, 2009
Case-Shiller index still in cliff-dive mode
No surprise here, but the S&P/Case-Shiller index out today calls 2008 the worst year in the 21-year history of the measure. The National Association of Realtors already has called ‘08 the most painful year for home prices since the Great Depression.
Here’s the Case-Shiller index for Miami-Dade, Broward and Palm Beach counties since 1987:
http://blogs.palmbeachpost.com/realtime/files/2009/02/picture-2.png
Case-Shiller index still in cliff-dive mode
No surprise here, but the S&P/Case-Shiller index out today calls 2008 the worst year in the 21-year history of the measure. The National Association of Realtors already has called ‘08 the most painful year for home prices since the Great Depression.
Here’s the Case-Shiller index for Miami-Dade, Broward and Palm Beach counties since 1987:
http://blogs.palmbeachpost.com/realtime/files/2009/02/picture-2.png
Lagging economy hits Palm Beach
SINCE THIS ARTICLE WAS PUBLISHED, the following properties sold in PALM BEACH:
402 Primavera Jan. 2009 $2,000,000
Assessed market value: $4,132,000
2267 E Ibis Isle Jan. 2009 $1,360,000 Previous sale: Jun. 2007 $1,725,000
308 Arabian Nov. 2008 $2,850,000 Previous sale: May 2004 $3,200,000
Assessed market value: $3,000,000
300 Parc Monceau Nov. 2008 $4,000,000
Assessed market value: $6,450,000
301 Garden Dec. 2008 $2,500,000
Assessed market value: $3,000,000
1090 S Ocean Dec. 2008 $4,150,000
Assessed market value: $2,020,000
202 Seaspray Dec. 2008 $860,000
Assessed market value: $700,000
280 Orange Grove Dec. 2008 $1,067,000
Assessed market value: $1,600,000
695 S County Rd. Dec. 3,500,000
Assessed market value: $5,450,000 Previous sale April 2006 $7,800,000
166 Everglades Nov. 2008 $2,500,000 Previous sale: Nov. 2004 $2,771,000
****** ******* ********
Lagging economy hits Palm Beach as homes languish a little longer on market
By MEGAN V. WINSLOW, Daily News Staff Writer
Saturday, November 22, 2008
Palm Beach has enjoyed a hearty share of eye-popping home sales figures this year, including closings of $77.5 million and $95 million.
And according to a fall 2008 residential market report from Brown Harris Stevens, those heavyweight figures have thrust the average price for Palm Beach single-family homes up 80 percent between April and September compared with the same period last year.
But like other luxury home markets across the country, Palm Beach has also seen an increase in the average number of days single-family homes sit on the market. The Brown Harris Stevens report indicates an 8 percent increase from 171 to 184 days between April and September compared with last year.
That's well above the average number of days on market for single-family homes within luxury ZIP codes across the country. According to a Nov. 16 report from the Institute for Luxury Home Marketing in Dallas, the average among 31 major U.S. metro areas is 137 days. That's up from 120 in September and about 110 in January.
Like those local record sales, the high Palm Beach average could be attributed to a few outliers.
.....
While Cloninger said it's never been a better time to be a buyer — especially in Palm Beach, where property has historically held its value — Heym believes it could take time before buyers creep out of a money-holding pattern and perhaps scoop up some of the properties languishing on the market.
"Like any other market, (Palm Beach is) dealing with a lot of the same uncertainty that's hitting most of the country right now, with everything that's gone on with the economy," Heym said. "I think that, so far, Palm Beach has fared better than most. And I think we'll learn a lot over the next couple of months."
402 Primavera Jan. 2009 $2,000,000
Assessed market value: $4,132,000
2267 E Ibis Isle Jan. 2009 $1,360,000 Previous sale: Jun. 2007 $1,725,000
308 Arabian Nov. 2008 $2,850,000 Previous sale: May 2004 $3,200,000
Assessed market value: $3,000,000
300 Parc Monceau Nov. 2008 $4,000,000
Assessed market value: $6,450,000
301 Garden Dec. 2008 $2,500,000
Assessed market value: $3,000,000
1090 S Ocean Dec. 2008 $4,150,000
Assessed market value: $2,020,000
202 Seaspray Dec. 2008 $860,000
Assessed market value: $700,000
280 Orange Grove Dec. 2008 $1,067,000
Assessed market value: $1,600,000
695 S County Rd. Dec. 3,500,000
Assessed market value: $5,450,000 Previous sale April 2006 $7,800,000
166 Everglades Nov. 2008 $2,500,000 Previous sale: Nov. 2004 $2,771,000
****** ******* ********
Lagging economy hits Palm Beach as homes languish a little longer on market
By MEGAN V. WINSLOW, Daily News Staff Writer
Saturday, November 22, 2008
Palm Beach has enjoyed a hearty share of eye-popping home sales figures this year, including closings of $77.5 million and $95 million.
And according to a fall 2008 residential market report from Brown Harris Stevens, those heavyweight figures have thrust the average price for Palm Beach single-family homes up 80 percent between April and September compared with the same period last year.
But like other luxury home markets across the country, Palm Beach has also seen an increase in the average number of days single-family homes sit on the market. The Brown Harris Stevens report indicates an 8 percent increase from 171 to 184 days between April and September compared with last year.
That's well above the average number of days on market for single-family homes within luxury ZIP codes across the country. According to a Nov. 16 report from the Institute for Luxury Home Marketing in Dallas, the average among 31 major U.S. metro areas is 137 days. That's up from 120 in September and about 110 in January.
Like those local record sales, the high Palm Beach average could be attributed to a few outliers.
.....
While Cloninger said it's never been a better time to be a buyer — especially in Palm Beach, where property has historically held its value — Heym believes it could take time before buyers creep out of a money-holding pattern and perhaps scoop up some of the properties languishing on the market.
"Like any other market, (Palm Beach is) dealing with a lot of the same uncertainty that's hitting most of the country right now, with everything that's gone on with the economy," Heym said. "I think that, so far, Palm Beach has fared better than most. And I think we'll learn a lot over the next couple of months."
Tuesday, February 24, 2009
"People are buying all the cheap stuff, and the rest is languishing"
Palm Beach existing-home sales slump deepens
Prospective home buyers let the selling season pass with maybe a lowball offer.
Nationally in 2008, 4.9 million homes changed hands, down 13.1 percent from 2007. It was the lowest number of sales since 1997. The median home price last year was $198,600, down 9.3 percent from 2007.
With buyers scooping up bank-owned properties at low prices, regular sellers should buckle up for another rough ride in 2009.
"People are buying all the cheap stuff, and the rest is languishing"
Prospective home buyers let the selling season pass with maybe a lowball offer.
Nationally in 2008, 4.9 million homes changed hands, down 13.1 percent from 2007. It was the lowest number of sales since 1997. The median home price last year was $198,600, down 9.3 percent from 2007.
With buyers scooping up bank-owned properties at low prices, regular sellers should buckle up for another rough ride in 2009.
"People are buying all the cheap stuff, and the rest is languishing"
High-End Foreclosures Rising Among Top Tier Homes
High-End Foreclosures Rising Among Top Tier Homes
By Octavio Nuiry, RealtyTrac Staff Writer
Until now, the foreclosure crisis was confined to a narrow niche of middle-class urban communities and outer-rim new housing developments where first-time homeowners and real estate speculators benefited briefly from favorable financing.
But increasingly there are signs that the foreclosure problem is spilling over into wealthier areas, where prime borrowers — and even high-end real estate developers — are rapidly falling behind on their construction loans, mortgage payments, property taxes, auto loans and credit cards at an alarmingly fast pace, according to industry analysts, economists and real estate brokers.
Jack McCabe, a real estate consultant in Deerfield Beach, Fla., said there will be more troubles for upscale flippers, high-end prime borrowers, developers and lenders.
“Upscale foreclosures are a growing trend,” said McCabe, pointing to the overflow of some 30,000 unsold beachfront Miami condominiums. “The wealthy are not insulated from foreclosures. In a lot of the bubble markets — like Miami, Palm Beach, San Diego, Las Vegas, Orange County and the Inland Empire in California — we are going to see an increase in the number of high-end foreclosures in relatively wealthy communities. This is just the tip of the iceberg.”
McCabe believes that delinquencies and defaults will rise not only among subprime borrowers, but among prime mortgages, Alt-A loans, teaser rate loans and low money-down loans as well, forcing homes valued at more than $750,000 into foreclosure. The rising trend of prime delinquencies among the wealthy poses a new threat to a battered housing market, which McCabe and others specialists claim is in a recession or heading towards one.
“The next two years are going to be pretty ugly in South Florida,” predicted McCabe, saying that Florida real estate will drop by another 10 to 15 percent in 2009 and the market will flatten by 2010.
With so many foreclosures across the nation, the mortgage mess is finally hitting the rich and the ultra rich luxury real estate markets. Seven-figure foreclosures — once a rarity in 2007 — are starting to pop up with more frequency in some of the wealthiest communities nationwide. Already, there’s a glut of McMansions in the $500,000 to $1 million range that have been foreclosed by lenders — and many more are falling into foreclosure, according to an analysis of RealtyTrac foreclosure records in 2006 and 2007 (see graphic).
Even in the Hamptons?
In many popular coastal areas, the inventory of high-end foreclosures has swelled, putting additional pressure on home prices and inventories. Along the Long Island shore, John Brady, an agent in the East Hampton area of Long Island, N.Y., trolls the upper-end of the foreclosure train wreck, searching for million-dollar bank-owned listings.
“The high-end housing market is not immune to foreclosure,” said Brady, who handles bank-owned foreclosure listings. “Rich people lose their home to foreclosure too. But they prefer to lose their second home rather than their first home.”
Brady confirmed McCabe’s statements, claiming that a growing number of high-end Hampton homes are falling into foreclosure — although the analysis of foreclosure data from RealtyTrac shows New York foreclosure properties in the $500,000 to $1 million range increased just 7 percent in 2007, and New York foreclosure properties valued at more than $1 million actually decreased 24 percent.
Brady said the owners of high-end Hampton foreclosures tend to be “people who kept pulling money out of their houses for their business, using equity in their second homes to pay business debt, credit cards, buy cars, go on trips.” They used their homes, he said, to get cash and kept pulling equity out.
Beachfront Bubble Bursts
In Florida’s Treasure Coast, buyers for Palm Beach oceanfront properties are some of the wealthiest people in the world. Ever since the 1920s, when the Vanderbilts and Biltmores built palatial winter estates on the sunny beaches of South Florida, northern snowbirds have flocked southward to Florida.
“I’m working with several foreign buyers right now,” said Deborah Magraw, a Palm Beach, Fla. agent who is currently representing buyers from Germany, Canada and Spain. “One buyer is looking for Palm Beach foreclosures priced between a $1.5 million and $2.5 million.”
Magraw, who sells bank-owned properties in the upscale communities of Wellington and West Palm Beach, Fla., said the trend of expensive homes falling into foreclosure has accelerated the past year, and she estimates that their are 80 high-end Palm Beach properties that are in foreclosure.
Consider Veronica Hearst, the widow of Randolph Hearst and stepmother of 1970s kidnap victim Patty Hearst, whose 52-room oceanfront mansion in Palm Beach, Fla. just recently went up for auction and sold back to the foreclosing lender for $22 million.
The Hearst foreclosure is an extreme example showing that high-end foreclosures are a growing trend.
“It’s going to be nasty,” warned McCabe. “The subprime was only the tip of the iceberg.”
By Octavio Nuiry, RealtyTrac Staff Writer
Until now, the foreclosure crisis was confined to a narrow niche of middle-class urban communities and outer-rim new housing developments where first-time homeowners and real estate speculators benefited briefly from favorable financing.
But increasingly there are signs that the foreclosure problem is spilling over into wealthier areas, where prime borrowers — and even high-end real estate developers — are rapidly falling behind on their construction loans, mortgage payments, property taxes, auto loans and credit cards at an alarmingly fast pace, according to industry analysts, economists and real estate brokers.
Jack McCabe, a real estate consultant in Deerfield Beach, Fla., said there will be more troubles for upscale flippers, high-end prime borrowers, developers and lenders.
“Upscale foreclosures are a growing trend,” said McCabe, pointing to the overflow of some 30,000 unsold beachfront Miami condominiums. “The wealthy are not insulated from foreclosures. In a lot of the bubble markets — like Miami, Palm Beach, San Diego, Las Vegas, Orange County and the Inland Empire in California — we are going to see an increase in the number of high-end foreclosures in relatively wealthy communities. This is just the tip of the iceberg.”
McCabe believes that delinquencies and defaults will rise not only among subprime borrowers, but among prime mortgages, Alt-A loans, teaser rate loans and low money-down loans as well, forcing homes valued at more than $750,000 into foreclosure. The rising trend of prime delinquencies among the wealthy poses a new threat to a battered housing market, which McCabe and others specialists claim is in a recession or heading towards one.
“The next two years are going to be pretty ugly in South Florida,” predicted McCabe, saying that Florida real estate will drop by another 10 to 15 percent in 2009 and the market will flatten by 2010.
With so many foreclosures across the nation, the mortgage mess is finally hitting the rich and the ultra rich luxury real estate markets. Seven-figure foreclosures — once a rarity in 2007 — are starting to pop up with more frequency in some of the wealthiest communities nationwide. Already, there’s a glut of McMansions in the $500,000 to $1 million range that have been foreclosed by lenders — and many more are falling into foreclosure, according to an analysis of RealtyTrac foreclosure records in 2006 and 2007 (see graphic).
Even in the Hamptons?
In many popular coastal areas, the inventory of high-end foreclosures has swelled, putting additional pressure on home prices and inventories. Along the Long Island shore, John Brady, an agent in the East Hampton area of Long Island, N.Y., trolls the upper-end of the foreclosure train wreck, searching for million-dollar bank-owned listings.
“The high-end housing market is not immune to foreclosure,” said Brady, who handles bank-owned foreclosure listings. “Rich people lose their home to foreclosure too. But they prefer to lose their second home rather than their first home.”
Brady confirmed McCabe’s statements, claiming that a growing number of high-end Hampton homes are falling into foreclosure — although the analysis of foreclosure data from RealtyTrac shows New York foreclosure properties in the $500,000 to $1 million range increased just 7 percent in 2007, and New York foreclosure properties valued at more than $1 million actually decreased 24 percent.
Brady said the owners of high-end Hampton foreclosures tend to be “people who kept pulling money out of their houses for their business, using equity in their second homes to pay business debt, credit cards, buy cars, go on trips.” They used their homes, he said, to get cash and kept pulling equity out.
Beachfront Bubble Bursts
In Florida’s Treasure Coast, buyers for Palm Beach oceanfront properties are some of the wealthiest people in the world. Ever since the 1920s, when the Vanderbilts and Biltmores built palatial winter estates on the sunny beaches of South Florida, northern snowbirds have flocked southward to Florida.
“I’m working with several foreign buyers right now,” said Deborah Magraw, a Palm Beach, Fla. agent who is currently representing buyers from Germany, Canada and Spain. “One buyer is looking for Palm Beach foreclosures priced between a $1.5 million and $2.5 million.”
Magraw, who sells bank-owned properties in the upscale communities of Wellington and West Palm Beach, Fla., said the trend of expensive homes falling into foreclosure has accelerated the past year, and she estimates that their are 80 high-end Palm Beach properties that are in foreclosure.
Consider Veronica Hearst, the widow of Randolph Hearst and stepmother of 1970s kidnap victim Patty Hearst, whose 52-room oceanfront mansion in Palm Beach, Fla. just recently went up for auction and sold back to the foreclosing lender for $22 million.
The Hearst foreclosure is an extreme example showing that high-end foreclosures are a growing trend.
“It’s going to be nasty,” warned McCabe. “The subprime was only the tip of the iceberg.”
Lost Value
"The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded,"
Treasury Secretary Henry Paulson said on Sept. 19.
Treasury Secretary Henry Paulson said on Sept. 19.
Luxury's rough ride: High-end brands trail overall market
Friday, February 20, 2009
Luxury's rough ride: High-end brands trail overall market
by Christine Tierney / The Detroit News
Daimler AG executives may have thought they had escaped the brutal economics of the mainstream auto market when they got rid of Chrysler in the summer of 2007.
But a little over a year later, Daimler and other luxury carmakers are struggling in a downturn that has buffeted the fanciest nameplates as severely as the rest of the industry.
Daimler reported this week that its Mercedes-Benz Cars division lost $460 million in the fourth quarter of 2008 and it forecast lower Mercedes sales for this year. Moody's Investors Service lowered its outlook for Daimler and said it may cut its credit rating for BMW, citing concerns about the companies' profitability.
In contrast with past recessions, this slump is hurting many wealthy people who usually ride out economic ups and downs.
"This recession is one that is not respectful of social class," said Johan de Nysschen, president of Audi of America. "It's one that's cutting very deeply at all layers of society."
Many premium car buyers work in two of the economy's most troubled sectors, banking and real estate. People with big savings have seen a steep erosion in their personal wealth -- and that hasn't bottomed out. Last month was the worst January on record for the New York Stock Exchange.
In the United States, traditionally the most lucrative auto market, Mercedes sales plunged 42.9 percent and Cadillac sales slumped 42.5 percent in January, compared with the overall market's 37.1 percent drop. Bentley sales were off 74.7 percent, while Porsche's fell 36.1 percent.
While the declines reflect the severity of the recession, auto executives and analysts say underlying trends are aggravating the downturn in luxury car sales -- and they worry those may persist well beyond the recession.
One is a newfound austerity that appears to be a backlash to the conspicuous consumption that characterized the booms of recent decades.
......
Luxury's rough ride: High-end brands trail overall market
by Christine Tierney / The Detroit News
Daimler AG executives may have thought they had escaped the brutal economics of the mainstream auto market when they got rid of Chrysler in the summer of 2007.
But a little over a year later, Daimler and other luxury carmakers are struggling in a downturn that has buffeted the fanciest nameplates as severely as the rest of the industry.
Daimler reported this week that its Mercedes-Benz Cars division lost $460 million in the fourth quarter of 2008 and it forecast lower Mercedes sales for this year. Moody's Investors Service lowered its outlook for Daimler and said it may cut its credit rating for BMW, citing concerns about the companies' profitability.
In contrast with past recessions, this slump is hurting many wealthy people who usually ride out economic ups and downs.
"This recession is one that is not respectful of social class," said Johan de Nysschen, president of Audi of America. "It's one that's cutting very deeply at all layers of society."
Many premium car buyers work in two of the economy's most troubled sectors, banking and real estate. People with big savings have seen a steep erosion in their personal wealth -- and that hasn't bottomed out. Last month was the worst January on record for the New York Stock Exchange.
In the United States, traditionally the most lucrative auto market, Mercedes sales plunged 42.9 percent and Cadillac sales slumped 42.5 percent in January, compared with the overall market's 37.1 percent drop. Bentley sales were off 74.7 percent, while Porsche's fell 36.1 percent.
While the declines reflect the severity of the recession, auto executives and analysts say underlying trends are aggravating the downturn in luxury car sales -- and they worry those may persist well beyond the recession.
One is a newfound austerity that appears to be a backlash to the conspicuous consumption that characterized the booms of recent decades.
......
February 24, 2009 - 137 Properties for under $3 million
Palm Beach Single Family Homes for SALE between $1,5 and $3,0 million asking price:
137 properties !!!!!!!!
However, I am told that many property owners do not want anybody to know that they are experiencing economic difficulties and are therefore not "listing". So, the number may be much higher than the official 137.
137 properties !!!!!!!!
However, I am told that many property owners do not want anybody to know that they are experiencing economic difficulties and are therefore not "listing". So, the number may be much higher than the official 137.
Hamptons - Sale
GREAT REAL ESTATE MARKET at incredible value ?
The Hamptons Half-Price Sale
Prices for opulent weekend homes are slashed, but still fail to attract bidders
By LUCETTE LAGNADO
Bridgehampton, N.Y.
At first glance it's a gated mansion worthy of a Gilded Age: more than 14,000 square feet with eight bedrooms, 9½ bathrooms, five fireplaces, a pool, a pond, a tennis court and ocean views all nestled amid fields perfect for lavish summer parties.
Built on spec, this property was offered for sale in 2006 for $24.95 million. Today? Try $12.95 million -- and even that lower price hasn't yet lured a buyer. The mansion is now being sold at auction as part of a bankruptcy plan by the developer's firm. The manse stands unfinished, forlorn and uninhabited.
"Tragic," says Andrew Saunders, owner of real-estate agency Saunders & Associates, who adds the house would have sold in 2006 if it had been finished or priced less aggressively. "It was not overpriced. He got caught in economic times," counters A. Mitchell Greene, an attorney for the developer.
Welcome to the new Hamptons, where the boom's sunny days and Champagne nights have given way to foreclosure notices and sales at discounts of 25% to 30% and more. Some buyers are making offers of 50 cents on the dollar, and less. Brokers speak of the "Lehman houses" -- homes that used to belong to employees of the fallen Wall Street firm -- or "Madoff homes" -- those owned by clients of the Manhattan financier implicated in a Ponzi scheme. Summer rentals are languishing. "For rent" signs have begun to appear in the windows of some boutiques on Southhampton and East Hampton's tony shopping streets.
While Mr. Saunders remains a staunch optimist -- he opened his agency in Bridgehampton five months ago -- he is in the distinct minority. For many longtime residents, this is more than a recession. "Jay Gatsby is dead," says Dede Gotthelf, owner of the Southampton Inn, referring to F. Scott Fitzgerald's protagonist from another opulent time, also on New York's Long Island, that came to a sudden end. Ms. Gotthelf, many of whose guests spent $400 to $500 a night last summer, had the worst fourth quarter in her 11 years with the hotel, although she says business picked up recently.
A ghostly silence has settled on RVS Fine Arts, the Southampton gallery. Owner Roberta Von Schlossberg says in flush years she could easily sell large paintings in a price range of $5,000 and $25,000. Starting in mid-September as the financial crisis hit, she recalls, Jobs Lane became so quiet "you could roll a bowling ball down the sidewalk. Sales have greatly diminished." In Sag Harbor, Elisca Jeansonne, who owns the Gallery Merz, says business "has flatlined." At the entrance of her gallery stands a large painting of goldfish in a bag by Kevin Berlin. Priced at $35,000, it's on sale for $25,000.
Other famous resort towns are suffering. In Aspen, Colo., sales of single-family homes above $1 million fell 44% in the fourth quarter from a year earlier, according to Morris & Fyrwald Sotheby's International Realty. In the Hamptons, over the past eight years, property values soared to dizzying heights. Once a mecca for artists drawn by the light and natural beauty, the picturesque villages drew wealthy individuals from New York, Los Angeles and Europe. "There were properties that were overvalued more than in your wildest imagination, they were being built and sold for double the price in a couple of years," says Paul Brennan, regional manager for Prudential Douglas Elliman Real Estate. Then last summer, he says, sales stopped. Now, "it is blacker than anyone thought it was going to be." In Southampton, the number of fourth-quarter sales plunged 45%, according to The Real Estate Report Inc.
At Prudential's Bridgehampton office, Broker Lynda Ireland spends much of her time now dealing with offers from individuals she calls "investors." "They are putting $1 million to $1.5 million offers on homes that are $3 million to $4 million," the 25-year Hamptons resident says.
Ms. Ireland herself has been unable to sell a four-bedroom Southampton house she purchased unfinished from a builder in 2006 and put work into it. In 2007, Ms. Ireland put the home on the market for $925,000. The property languished. About four months ago, she rejected an offer of $680,000, sure she could get more. Now, faced with two mortgages and a plummeting market, Ms. Ireland emailed thousands of colleagues and potential customers. "Owner Is Ready to Make a Deal Before They Lose the House," the email read. The note gave a new price: $595,000, which "is still negotiable." She's now entertaining bids at $550,000 -- 41% below her original asking price.
Real-estate broker Enzo Morabito also remembers the good times, when he'd host Champagne parties at the Hamptons' annual polo tournament. He owned as many as three polo horses of his own. Now, Mr. Morabito is running full-page ads in the Southampton Press headlined: "Extraordinary Times Call for Extraordinary Measures." His plan: Hire an auctioneer to sell unwanted properties. He sold his last horse, a pony, last spring.
As for rentals, houses that rented for $350,000 in the summer of 2008 have to be reduced to the $250,000 range to find any takers this year, Prudential's Mr. Brennan says. "People have money. Nobody is spending it," he says, adding hopefully: "They have not canceled summer."
Meanwhile, locals are grappling with ways to survive the downturn. Steven Gaines, author and chronicler of the Hamptons high-life, says he's eating at home most nights. Broker Nelya Veselaya's strategy: get out of town for a while. She flew to Buenos Aires in December for 2½ weeks and danced the tango every night. "Honestly, I was getting really depressed," she says, "So I decided to go away and dance and be happy."
From the WALL STREET JOURNAL this past weekend
The Hamptons Half-Price Sale
Prices for opulent weekend homes are slashed, but still fail to attract bidders
By LUCETTE LAGNADO
Bridgehampton, N.Y.
At first glance it's a gated mansion worthy of a Gilded Age: more than 14,000 square feet with eight bedrooms, 9½ bathrooms, five fireplaces, a pool, a pond, a tennis court and ocean views all nestled amid fields perfect for lavish summer parties.
Built on spec, this property was offered for sale in 2006 for $24.95 million. Today? Try $12.95 million -- and even that lower price hasn't yet lured a buyer. The mansion is now being sold at auction as part of a bankruptcy plan by the developer's firm. The manse stands unfinished, forlorn and uninhabited.
"Tragic," says Andrew Saunders, owner of real-estate agency Saunders & Associates, who adds the house would have sold in 2006 if it had been finished or priced less aggressively. "It was not overpriced. He got caught in economic times," counters A. Mitchell Greene, an attorney for the developer.
Welcome to the new Hamptons, where the boom's sunny days and Champagne nights have given way to foreclosure notices and sales at discounts of 25% to 30% and more. Some buyers are making offers of 50 cents on the dollar, and less. Brokers speak of the "Lehman houses" -- homes that used to belong to employees of the fallen Wall Street firm -- or "Madoff homes" -- those owned by clients of the Manhattan financier implicated in a Ponzi scheme. Summer rentals are languishing. "For rent" signs have begun to appear in the windows of some boutiques on Southhampton and East Hampton's tony shopping streets.
While Mr. Saunders remains a staunch optimist -- he opened his agency in Bridgehampton five months ago -- he is in the distinct minority. For many longtime residents, this is more than a recession. "Jay Gatsby is dead," says Dede Gotthelf, owner of the Southampton Inn, referring to F. Scott Fitzgerald's protagonist from another opulent time, also on New York's Long Island, that came to a sudden end. Ms. Gotthelf, many of whose guests spent $400 to $500 a night last summer, had the worst fourth quarter in her 11 years with the hotel, although she says business picked up recently.
A ghostly silence has settled on RVS Fine Arts, the Southampton gallery. Owner Roberta Von Schlossberg says in flush years she could easily sell large paintings in a price range of $5,000 and $25,000. Starting in mid-September as the financial crisis hit, she recalls, Jobs Lane became so quiet "you could roll a bowling ball down the sidewalk. Sales have greatly diminished." In Sag Harbor, Elisca Jeansonne, who owns the Gallery Merz, says business "has flatlined." At the entrance of her gallery stands a large painting of goldfish in a bag by Kevin Berlin. Priced at $35,000, it's on sale for $25,000.
Other famous resort towns are suffering. In Aspen, Colo., sales of single-family homes above $1 million fell 44% in the fourth quarter from a year earlier, according to Morris & Fyrwald Sotheby's International Realty. In the Hamptons, over the past eight years, property values soared to dizzying heights. Once a mecca for artists drawn by the light and natural beauty, the picturesque villages drew wealthy individuals from New York, Los Angeles and Europe. "There were properties that were overvalued more than in your wildest imagination, they were being built and sold for double the price in a couple of years," says Paul Brennan, regional manager for Prudential Douglas Elliman Real Estate. Then last summer, he says, sales stopped. Now, "it is blacker than anyone thought it was going to be." In Southampton, the number of fourth-quarter sales plunged 45%, according to The Real Estate Report Inc.
At Prudential's Bridgehampton office, Broker Lynda Ireland spends much of her time now dealing with offers from individuals she calls "investors." "They are putting $1 million to $1.5 million offers on homes that are $3 million to $4 million," the 25-year Hamptons resident says.
Ms. Ireland herself has been unable to sell a four-bedroom Southampton house she purchased unfinished from a builder in 2006 and put work into it. In 2007, Ms. Ireland put the home on the market for $925,000. The property languished. About four months ago, she rejected an offer of $680,000, sure she could get more. Now, faced with two mortgages and a plummeting market, Ms. Ireland emailed thousands of colleagues and potential customers. "Owner Is Ready to Make a Deal Before They Lose the House," the email read. The note gave a new price: $595,000, which "is still negotiable." She's now entertaining bids at $550,000 -- 41% below her original asking price.
Real-estate broker Enzo Morabito also remembers the good times, when he'd host Champagne parties at the Hamptons' annual polo tournament. He owned as many as three polo horses of his own. Now, Mr. Morabito is running full-page ads in the Southampton Press headlined: "Extraordinary Times Call for Extraordinary Measures." His plan: Hire an auctioneer to sell unwanted properties. He sold his last horse, a pony, last spring.
As for rentals, houses that rented for $350,000 in the summer of 2008 have to be reduced to the $250,000 range to find any takers this year, Prudential's Mr. Brennan says. "People have money. Nobody is spending it," he says, adding hopefully: "They have not canceled summer."
Meanwhile, locals are grappling with ways to survive the downturn. Steven Gaines, author and chronicler of the Hamptons high-life, says he's eating at home most nights. Broker Nelya Veselaya's strategy: get out of town for a while. She flew to Buenos Aires in December for 2½ weeks and danced the tango every night. "Honestly, I was getting really depressed," she says, "So I decided to go away and dance and be happy."
From the WALL STREET JOURNAL this past weekend
What Real Estate Agents Don't Want You To Know
In PALM BEACH, as in any other place, real estate agents will tell you that this downturn in the economy will not affect the island because it is unique, because historically it has held its value, and they will tell you that the recent sales are ALL anomalies. I am not even saying that their intention is to tell you a lie, I think they say this so many times all the time that they really believe their own "facts".
What Real Estate Agents Don't Want You To Know
By Raynor James
For people looking to buy or sell houses, it can be difficult to ignore the prospect of hiring a real estate agent. That being said, what do you really get with an agent?
What Real Estate Agents Don’t Want You To Know
If you go to a doctor, you inherently rely on that person’s years and years of experience. You know they have spent a long time learning the intricacies of the body and you feel comfortable relying on their expertise. The same goes for practically any profession. In the case of real estate, most people assume that a real estate agent has also been trained over and over on the finer points of the real estate transaction. This is not particularly true.
If you ever have the time and money, I strongly suggest you become a real estate agent. It is an eye opening experience unlike any other. You will study a bit and then take your state test to get a license. The test is very, very simple and easy to pass. Your next step is to join up with an experienced realtor to learn under a steady hand. Once you do, you will be surprised by what they teach you.
Real estate is a fairly simple game. There just is not that much involved in buying or selling properties. Most real estate agents learn how to handle the nuts and bolts of the process over a few days of study or even by reading a few books. That doesn’t mean they don’t study and attend a lot of seminars, however. They certainly do, but the subject matter has little to do with the real estate process.
Real estate agents spend all their time and money learning how to sell. The product they focus on, however, is not property. It is you. There are endless seminars and meetings where the only thing addressed is how to get you, their client, to jump on a house or retain the real estate agent to sell yours. The goal of the agent is three fold – get you as a client, figure out how to manipulate you into taking action that will generate a commission and then deal with the property issue.
What Real Estate Agents Don't Want You To Know
By Raynor James
For people looking to buy or sell houses, it can be difficult to ignore the prospect of hiring a real estate agent. That being said, what do you really get with an agent?
What Real Estate Agents Don’t Want You To Know
If you go to a doctor, you inherently rely on that person’s years and years of experience. You know they have spent a long time learning the intricacies of the body and you feel comfortable relying on their expertise. The same goes for practically any profession. In the case of real estate, most people assume that a real estate agent has also been trained over and over on the finer points of the real estate transaction. This is not particularly true.
If you ever have the time and money, I strongly suggest you become a real estate agent. It is an eye opening experience unlike any other. You will study a bit and then take your state test to get a license. The test is very, very simple and easy to pass. Your next step is to join up with an experienced realtor to learn under a steady hand. Once you do, you will be surprised by what they teach you.
Real estate is a fairly simple game. There just is not that much involved in buying or selling properties. Most real estate agents learn how to handle the nuts and bolts of the process over a few days of study or even by reading a few books. That doesn’t mean they don’t study and attend a lot of seminars, however. They certainly do, but the subject matter has little to do with the real estate process.
Real estate agents spend all their time and money learning how to sell. The product they focus on, however, is not property. It is you. There are endless seminars and meetings where the only thing addressed is how to get you, their client, to jump on a house or retain the real estate agent to sell yours. The goal of the agent is three fold – get you as a client, figure out how to manipulate you into taking action that will generate a commission and then deal with the property issue.
Evans Report called "EVIL" Report
Read the Evans Report that real estate agents love to hand out and you quickly notice that it's not worth the paper it is written on.
They work with statistics that can hardly teach the truth!
The best example is the median sale for 2008 in PALM BEACH, considering that one of the mansions fetched about $100 million!
It draws all the wrong conclusions. Serious finance experts will tell you the truth: Evans is a lawyer who works for and with
the real estate agents.
That is really all there is to it!
I recommend people DO THEIR HOMEWORK: online one can easily find the MARKET VALUE of homes (in need of revision, of course,
because these always lag behind the real estate market situation - so revise down by 20% - it's realistic), look up recent sales,
yes, they are shocking indeed, do the MATH on the price per square footage that GRAND MANSIONS (not just homes) have been sold for,
THEN draw your own conclusions.
They work with statistics that can hardly teach the truth!
The best example is the median sale for 2008 in PALM BEACH, considering that one of the mansions fetched about $100 million!
It draws all the wrong conclusions. Serious finance experts will tell you the truth: Evans is a lawyer who works for and with
the real estate agents.
That is really all there is to it!
I recommend people DO THEIR HOMEWORK: online one can easily find the MARKET VALUE of homes (in need of revision, of course,
because these always lag behind the real estate market situation - so revise down by 20% - it's realistic), look up recent sales,
yes, they are shocking indeed, do the MATH on the price per square footage that GRAND MANSIONS (not just homes) have been sold for,
THEN draw your own conclusions.
Newspapers Hostage to Realtors
Don't sugarcoat bad news in real estate industry
Click-2-Listen
Indeed the paper first published an article that must have infuriated the REAL ESTATE AGENTS, because shortly thereafter they published another, which "sugarcoated" the reality of the sale. They must have been bombarded with calls that made them change the "message". I think this LETTER hits the nail on its head!
Saturday, February 21, 2009
I understand the need for all of us to be supportive of homeowners but the recent self-censorship your Web page has carried out is counterproductive. On Feb. 11, the headline described a home sale which indicated that the real estate market on the island might finally be coming down.
(Feb. 12) the same article was cleverly reworded on the Web page to describe the same home sale as fetching a reasonable price. I understand that the local real estate industry has a vested interest in saving face with their sellers after telling them that a home purchased in 2006 is automatically worth 20-30 percent more today in 2009. However, your paper should not be playing in this farce.
It is not helpful for anyone for this insightful newspaper to practice newspeak and change the tone of an article in the favor of the real estate listing agents. I recommend that the Palm Beach Daily News begin to slowly break the news to home sellers that just like Manhattan, the Hamptons and Fisher Island, home values on the island are retreating as buyers understand that no one (or place) is an "island" against economic reality.
John Strasswimmer
West Palm Beach
Click-2-Listen
Indeed the paper first published an article that must have infuriated the REAL ESTATE AGENTS, because shortly thereafter they published another, which "sugarcoated" the reality of the sale. They must have been bombarded with calls that made them change the "message". I think this LETTER hits the nail on its head!
Saturday, February 21, 2009
I understand the need for all of us to be supportive of homeowners but the recent self-censorship your Web page has carried out is counterproductive. On Feb. 11, the headline described a home sale which indicated that the real estate market on the island might finally be coming down.
(Feb. 12) the same article was cleverly reworded on the Web page to describe the same home sale as fetching a reasonable price. I understand that the local real estate industry has a vested interest in saving face with their sellers after telling them that a home purchased in 2006 is automatically worth 20-30 percent more today in 2009. However, your paper should not be playing in this farce.
It is not helpful for anyone for this insightful newspaper to practice newspeak and change the tone of an article in the favor of the real estate listing agents. I recommend that the Palm Beach Daily News begin to slowly break the news to home sellers that just like Manhattan, the Hamptons and Fisher Island, home values on the island are retreating as buyers understand that no one (or place) is an "island" against economic reality.
John Strasswimmer
West Palm Beach
Recovery will take years
Published: February 24, 2009
Bernanke: Recovery will take years
Federal Reserve chief says full recovery from this recession will take more than two or three years.
By Chris Isidore, CNNMoney.com senior writer
NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said he's hoping the recession could end later this year, but he cautioned that a full economic recovery will take "more than two or three years."
The head of the central bank said a turnaround will only occur "if actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability." He also acknowledged the recovery might not go as well as hoped.
"This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside," he said in prepared remarks before the Senate Banking Committee Tuesday.
In his prepared testimony, Bernanke did not discuss his views on several plans being discussed about how to fix the nation's banking system, such as proposals to nationalize Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) or other large banks.
He also did not give any further details about when the Fed may start to buy long-term Treasury bonds, something the central bank has hinted it may start doing.
But he said that "strong government action," in addition to the financial stimulus package recently passed by Congress, is needed to fix banking and the overall economy.
Bernanke gave this forecast as part of his semi-annual update to Congress about the nation's economic condition.
Bernanke: Recovery will take years
Federal Reserve chief says full recovery from this recession will take more than two or three years.
By Chris Isidore, CNNMoney.com senior writer
NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said he's hoping the recession could end later this year, but he cautioned that a full economic recovery will take "more than two or three years."
The head of the central bank said a turnaround will only occur "if actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability." He also acknowledged the recovery might not go as well as hoped.
"This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside," he said in prepared remarks before the Senate Banking Committee Tuesday.
In his prepared testimony, Bernanke did not discuss his views on several plans being discussed about how to fix the nation's banking system, such as proposals to nationalize Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) or other large banks.
He also did not give any further details about when the Fed may start to buy long-term Treasury bonds, something the central bank has hinted it may start doing.
But he said that "strong government action," in addition to the financial stimulus package recently passed by Congress, is needed to fix banking and the overall economy.
Bernanke gave this forecast as part of his semi-annual update to Congress about the nation's economic condition.
Saturday, February 21, 2009
Square Foot Price in PALM BEACH
Recent Sales:
$544 per sq. ft. 695 S County Road (Dec. 2008)
$438 per sq. Ft. 280 Orange Grove (Dec. 2008)
$357 per sq. ft. 402 Primavera (Jan. 2009)
$366 per sq. ft. 2267 E Ibis Isle (Dec. 2008)
$646 per sq. ft. 166 Everglades (Nov. 2008)
$561 per sq. ft. 4 Lagomar (Oct. 2008)
$305 per sq. ft. 222 Cherry Lane (Oct. 2008)
&&&
$544 per sq. ft. 695 S County Road (Dec. 2008)
$438 per sq. Ft. 280 Orange Grove (Dec. 2008)
$357 per sq. ft. 402 Primavera (Jan. 2009)
$366 per sq. ft. 2267 E Ibis Isle (Dec. 2008)
$646 per sq. ft. 166 Everglades (Nov. 2008)
$561 per sq. ft. 4 Lagomar (Oct. 2008)
$305 per sq. ft. 222 Cherry Lane (Oct. 2008)
&&&
Monday, February 16, 2009
Self-fulfilling Prophecy
The expectation of rising prices became a self-fulfilling prophecy as friends, employees, and relatives tried the FLIPPING.
The prevailing mindset was "if they can do it, so should I". More often than not sellers disregard the good advice of honest market value assessment. They keep alive the illusion that things will improve. Most real estate agents prey on these feelings by making promises that will never be fulfilled. They lie in order to "get the foot in the door". Once they have your house listed, they begin the opposite task of telling you that the market reality is that your home value has plummeted. At that point, it's very hard to change your mind and list your home at a more realistic asking price. But the truth is that whoever lowers their price first will be the lucky one to actually sell their home.
******
The prevailing mindset was "if they can do it, so should I". More often than not sellers disregard the good advice of honest market value assessment. They keep alive the illusion that things will improve. Most real estate agents prey on these feelings by making promises that will never be fulfilled. They lie in order to "get the foot in the door". Once they have your house listed, they begin the opposite task of telling you that the market reality is that your home value has plummeted. At that point, it's very hard to change your mind and list your home at a more realistic asking price. But the truth is that whoever lowers their price first will be the lucky one to actually sell their home.
******
ASSESSED HOME VALUES in PALM BEACH
Assessed Home Values Very Rarely Equal the Fair Market Value
In respect to home values buyers need to understand that the assessed value is almost always lagging behind what is happening in the Real Estate market.
People, look up the assessed values and then see the outrageous asking prices for properties!
One of these days sellers will have to wake up to the awful truth that even in Palm Beach home values have plummeted.
Again, one must do the homework and understand that only a few years ago homes in Palm Beach were bought for $500,000 and now their owners have put them up for sale for $4 million. No renovations were done! People still want to keep the illusion that they will be allowed to be "FLIPPERS".
Flipping will never again happen in Palm Beach. The way to cash in on real estate will be the traditional long-term investment plan of old. Buy a home, invest, renovate, and hope for a x% yearly increase in value. Sweat equity! Long-term investment in a property!
*****
In respect to home values buyers need to understand that the assessed value is almost always lagging behind what is happening in the Real Estate market.
People, look up the assessed values and then see the outrageous asking prices for properties!
One of these days sellers will have to wake up to the awful truth that even in Palm Beach home values have plummeted.
Again, one must do the homework and understand that only a few years ago homes in Palm Beach were bought for $500,000 and now their owners have put them up for sale for $4 million. No renovations were done! People still want to keep the illusion that they will be allowed to be "FLIPPERS".
Flipping will never again happen in Palm Beach. The way to cash in on real estate will be the traditional long-term investment plan of old. Buy a home, invest, renovate, and hope for a x% yearly increase in value. Sweat equity! Long-term investment in a property!
*****
Doing homework can prevent financial nightmare
Doing homework can prevent financial nightmare — such as in Madoff case
By GAIL LIBERMAN, Special to the Daily News
Saturday, January 31, 2009
With Zsa Zsa Gabor among the latest to be added to the list of those who were taken by Bernie Madoff, professional advice on how to avoid financial nightmares is in order.
The key: A lot of hard work before you invest, suggests Ken Springer, president of New York-based Corporate Resolutions, a business investigations and consulting firm. After all, chances are your family wealth wasn't built on luck. So why rely on blind faith when you invest?
Springer, a former special agent for the FBI, says before entrusting your money to someone, get to know the person with whom you're investing. Do this by scrutinizing his or her history.
I've often suggested some basic web sites worth searching for information on your money manager. Those include an internet search of articles and blogs via "Google." Also, a search for background and complaints at http://us.bbb.org, www.finra.org/investors and www.sec.gov.
But don't stop there, Springer says. There had been a number of questions raised about Bernie Madoff in a Barron's article a couple of years ago. Unfortunately, that article wouldn't have appeared on a traditional search engine because not all publications are on search engines. Plus, some search engines may limit articles they carry.
He suggests a couple of other tactics. Thankfully, a couple, he says, are particularly easy to do in Palm Beach County.
* Search for lawsuits. One great resource is www.pbcountyclerk.com, he notes. You can find liens, judgments and criminal records. "Every county is different," he says, "but (Palm Beach County) happens to be a good one."
* Check with your attorney general to see if your money manager, or anyone else with whom you're considering doing business, has been in trouble or is involved in an ongoing investigation. In Florida, you can check ongoing state attorney general investigations at www.myfloridalegal.com. Click on "Programs and Units," on the left. For a searchable data base, click on "Economic crimes."
* Check federal U.S. District Court, bankruptcy and Appellate court records at http://pacer.psc.uscourts.gov. Unfortunately, this Web site charges. It's generally 8 cents per page, including the initial search results. Plus, there is a limit of $2.40 per other document you view, download or print.
* Be sure to scrutinize your money manager's ADV form, on file, often at www.sec.gov. Bernie Madoff, Springer notes, disclosed on his ADV Form that he had a relationship with a securities firm through which he conducted all his trades — a conflict of interest. Monitor custodial agreements so you know who's managing the money. Make sure it's an independent third party.
* Examine the accounting firm. In Madoff's case, the accounting firm was a three-person firm 40 miles north of New York City. This, Springer notes, didn't make sense. "If (an investment firm) is in Palm Beach, you're going to use a firm in Palm Beach, West Palm Beach or Delray. You wouldn't use someone in Alabama!" This raises a red flag to ask questions.
* If you're investing large amounts, don't do it, he advises, without searching all of these major data bases: LexisNexis, Westlaw, Factiva — which covers The Wall Street Journal and Barron's — and Bloomberg. Those four data bases, he says, "are the types of research tools just to see what news stories are out there."
* Verify whatever you can. "If someone gives you three references, call them," he suggests. "I don't care if it's a general contractor who did work on a home. Find out, 'Did they do what they said? Were there any problems?' If the person says he or she is licensed and bonded, ask, 'who are you licensed with?' 'How can I confirm this?' Verify the information."
* Monitor your investments on an ongoing basis. Today, Internet search engines let you arrange to have ongoing information about anything you choose automatically emailed to you. Make certain you use this great feature.
Relying on a librarian to help you? Make sure your librarian understands exactly what you need. Problem: Say you're searching for lawsuits. Not all courts list previously settled lawsuits. Their data bases may be limited to pending lawsuits. Also, beware that nowadays people will settle cases out of court for business reasons. Of course, you'll want to read what that lawsuit was about.
Gail Liberman is co-author of several books with her husband, Alan Lavine. Their latest, published by Que, is 'Quick Steps to Financial Stability.'
By GAIL LIBERMAN, Special to the Daily News
Saturday, January 31, 2009
With Zsa Zsa Gabor among the latest to be added to the list of those who were taken by Bernie Madoff, professional advice on how to avoid financial nightmares is in order.
The key: A lot of hard work before you invest, suggests Ken Springer, president of New York-based Corporate Resolutions, a business investigations and consulting firm. After all, chances are your family wealth wasn't built on luck. So why rely on blind faith when you invest?
Springer, a former special agent for the FBI, says before entrusting your money to someone, get to know the person with whom you're investing. Do this by scrutinizing his or her history.
I've often suggested some basic web sites worth searching for information on your money manager. Those include an internet search of articles and blogs via "Google." Also, a search for background and complaints at http://us.bbb.org, www.finra.org/investors and www.sec.gov.
But don't stop there, Springer says. There had been a number of questions raised about Bernie Madoff in a Barron's article a couple of years ago. Unfortunately, that article wouldn't have appeared on a traditional search engine because not all publications are on search engines. Plus, some search engines may limit articles they carry.
He suggests a couple of other tactics. Thankfully, a couple, he says, are particularly easy to do in Palm Beach County.
* Search for lawsuits. One great resource is www.pbcountyclerk.com, he notes. You can find liens, judgments and criminal records. "Every county is different," he says, "but (Palm Beach County) happens to be a good one."
* Check with your attorney general to see if your money manager, or anyone else with whom you're considering doing business, has been in trouble or is involved in an ongoing investigation. In Florida, you can check ongoing state attorney general investigations at www.myfloridalegal.com. Click on "Programs and Units," on the left. For a searchable data base, click on "Economic crimes."
* Check federal U.S. District Court, bankruptcy and Appellate court records at http://pacer.psc.uscourts.gov. Unfortunately, this Web site charges. It's generally 8 cents per page, including the initial search results. Plus, there is a limit of $2.40 per other document you view, download or print.
* Be sure to scrutinize your money manager's ADV form, on file, often at www.sec.gov. Bernie Madoff, Springer notes, disclosed on his ADV Form that he had a relationship with a securities firm through which he conducted all his trades — a conflict of interest. Monitor custodial agreements so you know who's managing the money. Make sure it's an independent third party.
* Examine the accounting firm. In Madoff's case, the accounting firm was a three-person firm 40 miles north of New York City. This, Springer notes, didn't make sense. "If (an investment firm) is in Palm Beach, you're going to use a firm in Palm Beach, West Palm Beach or Delray. You wouldn't use someone in Alabama!" This raises a red flag to ask questions.
* If you're investing large amounts, don't do it, he advises, without searching all of these major data bases: LexisNexis, Westlaw, Factiva — which covers The Wall Street Journal and Barron's — and Bloomberg. Those four data bases, he says, "are the types of research tools just to see what news stories are out there."
* Verify whatever you can. "If someone gives you three references, call them," he suggests. "I don't care if it's a general contractor who did work on a home. Find out, 'Did they do what they said? Were there any problems?' If the person says he or she is licensed and bonded, ask, 'who are you licensed with?' 'How can I confirm this?' Verify the information."
* Monitor your investments on an ongoing basis. Today, Internet search engines let you arrange to have ongoing information about anything you choose automatically emailed to you. Make certain you use this great feature.
Relying on a librarian to help you? Make sure your librarian understands exactly what you need. Problem: Say you're searching for lawsuits. Not all courts list previously settled lawsuits. Their data bases may be limited to pending lawsuits. Also, beware that nowadays people will settle cases out of court for business reasons. Of course, you'll want to read what that lawsuit was about.
Gail Liberman is co-author of several books with her husband, Alan Lavine. Their latest, published by Que, is 'Quick Steps to Financial Stability.'
RECOVERY in 2010?
Cautious analysts hope for a beginning of a very slow recovery in the second half of 2010.
The US recovery still seems very distant.
US recovery still distant: Canada's top banker
OTTAWA (AFP) — The US economy may not emerge from recession until at least 2010, making it harder for Canada to stage its own recovery, Canada's central bank chief said Tuesday.
Thus, Canadians may have to temper expectations for their own dour economy, which is intricately tied to US fortunes, Bank of Canada Governor Mark Carney told a parliamentary committee on finance.
"The outlook for the global economy has deteriorated significantly in recent months," he told members of parliament. "The recession that originated in the United States is now spreading globally through confidence, financial and trade channels."
"We (now) expect that the eventual US recovery will be much slower than usual," he said. "We project that it will take two and half years from the onset of the recession for US GDP (gross domestic product) to return to its pre-recession level."
Carney blamed the US "sluggishness" on the lingering effects of a financial crisis caused by the meltdown of the US subprime mortgage market last year, and massive US job losses, compounding low consumer spending.
Decisions by the US and other Group of 20 nations in the coming weeks to "isolate toxic assets" from banks, improve regulatory frameworks and fund the International Monetary Fund (IMF), he said, "are vital" to Canada's economic recovery.
"If these national and multilateral measures are not timely, bold, and well-executed, Canada?s economic recovery will be both attenuated and delayed," he said.
*****
Recession could last long into 2010
David Gow in Brussels
guardian.co.uk, Wednesday 10 December 2008 15.13 GMT
Article history
The recession in the industrialised world will be longer and deeper than forecast so far and could spread to emerging economies such as China and India, the OECD and European commission warned today.
Klaus Schmidt-Hebbel, OECD chief economist, and Marco Buti, European commission director-general of economic affairs, both indicated that the projected recovery could be postponed until later in 2010.
Buti said the next commission forecasts for the EU and eurozone economies, to be published a month earlier than planned in January, would be significantly worse than those drawn up a few weeks ago.
Schmidt-Hebbel told a European Policy Centre conference the OECD would now change its forecast of just two weeks ago and extend the projected recession by at least a quarter, with unemployment peaking in 2010-11. The OECD is so far forecasting a rise of 8 million unemployed to 42 million in its area.
Their gloomy readings of global economic forecasts came as a leading German forecaster, the RWI institute, said Europe's biggest economy would contract by 2% in 2009 – the worst recession since 1949. France's industrial output collapsed by a record 7.2% last month.
Another was the likelihood that central banks, led by the US Federal Reserve which is expected to cut rates to 0.5% next week, would further ease monetary policy. But the impact of cuts to near-zero could take longer than usual to feed through.
*****
The US recovery still seems very distant.
US recovery still distant: Canada's top banker
OTTAWA (AFP) — The US economy may not emerge from recession until at least 2010, making it harder for Canada to stage its own recovery, Canada's central bank chief said Tuesday.
Thus, Canadians may have to temper expectations for their own dour economy, which is intricately tied to US fortunes, Bank of Canada Governor Mark Carney told a parliamentary committee on finance.
"The outlook for the global economy has deteriorated significantly in recent months," he told members of parliament. "The recession that originated in the United States is now spreading globally through confidence, financial and trade channels."
"We (now) expect that the eventual US recovery will be much slower than usual," he said. "We project that it will take two and half years from the onset of the recession for US GDP (gross domestic product) to return to its pre-recession level."
Carney blamed the US "sluggishness" on the lingering effects of a financial crisis caused by the meltdown of the US subprime mortgage market last year, and massive US job losses, compounding low consumer spending.
Decisions by the US and other Group of 20 nations in the coming weeks to "isolate toxic assets" from banks, improve regulatory frameworks and fund the International Monetary Fund (IMF), he said, "are vital" to Canada's economic recovery.
"If these national and multilateral measures are not timely, bold, and well-executed, Canada?s economic recovery will be both attenuated and delayed," he said.
*****
Recession could last long into 2010
David Gow in Brussels
guardian.co.uk, Wednesday 10 December 2008 15.13 GMT
Article history
The recession in the industrialised world will be longer and deeper than forecast so far and could spread to emerging economies such as China and India, the OECD and European commission warned today.
Klaus Schmidt-Hebbel, OECD chief economist, and Marco Buti, European commission director-general of economic affairs, both indicated that the projected recovery could be postponed until later in 2010.
Buti said the next commission forecasts for the EU and eurozone economies, to be published a month earlier than planned in January, would be significantly worse than those drawn up a few weeks ago.
Schmidt-Hebbel told a European Policy Centre conference the OECD would now change its forecast of just two weeks ago and extend the projected recession by at least a quarter, with unemployment peaking in 2010-11. The OECD is so far forecasting a rise of 8 million unemployed to 42 million in its area.
Their gloomy readings of global economic forecasts came as a leading German forecaster, the RWI institute, said Europe's biggest economy would contract by 2% in 2009 – the worst recession since 1949. France's industrial output collapsed by a record 7.2% last month.
Another was the likelihood that central banks, led by the US Federal Reserve which is expected to cut rates to 0.5% next week, would further ease monetary policy. But the impact of cuts to near-zero could take longer than usual to feed through.
*****
PALM BEACH's WORTH AVENUE
ECONOMIC DOWNTURN leaves LUXURY BRANDS in jeopardy
By MEGAN V. WINSLOW
Daily News Staff Writer
Sunday, February 15, 2009
WEST PALM BEACH — Stroll down Worth Avenue any given afternoon, and the sheer volume of designer handbags draped from shoppers' arms creates an alphabet soup of initialed logos demanding attention.
The current economy, however, could mean a decline in the conspicuous display of such status symbols, Conde Nast Portfolio's European Editor, Dana Thomas, told the Luxury Marketing Council of the Palm Beaches on Tuesday.
"Who wants to be walking around town, showing off wealth when nobody else has it?" Thomas said. "You just don't do it. There's a toning-down across the board."
Thomas delved into her nearly 30-year history of covering the fashion industry to share observations and predictions about the health of luxury brands with about 40 council members gathered at the Phillips Point Club by The Breakers.
Luxury's diagnosis isn't good.
Consumers are not buying; stock prices are dismal, and many companies are scaling back advertising and the launch of new stores to compensate, Thomas said.
By MEGAN V. WINSLOW
Daily News Staff Writer
Sunday, February 15, 2009
WEST PALM BEACH — Stroll down Worth Avenue any given afternoon, and the sheer volume of designer handbags draped from shoppers' arms creates an alphabet soup of initialed logos demanding attention.
The current economy, however, could mean a decline in the conspicuous display of such status symbols, Conde Nast Portfolio's European Editor, Dana Thomas, told the Luxury Marketing Council of the Palm Beaches on Tuesday.
"Who wants to be walking around town, showing off wealth when nobody else has it?" Thomas said. "You just don't do it. There's a toning-down across the board."
Thomas delved into her nearly 30-year history of covering the fashion industry to share observations and predictions about the health of luxury brands with about 40 council members gathered at the Phillips Point Club by The Breakers.
Luxury's diagnosis isn't good.
Consumers are not buying; stock prices are dismal, and many companies are scaling back advertising and the launch of new stores to compensate, Thomas said.
LUXURY SHOPPING
Palm Beach DIOR boutique closes abruptly
By ROBERT JANJIGIAN
Palm Beach Daily News Fashion Editor
Wednesday, January 07, 2009
For the past two years, rumors have swirled that the island's Christian Dior boutique was about to close, said Sherry Frankel, president of the Worth Avenue Association.
On the afternoon of Dec. 26, however, the rumor came true as the store was shuttered, signs atop the storefront removed quickly and windows covered with black paper.
"It didn't come as that much of a surprise, considering all the speculation about it closing that's been bandied down the Avenue for quite a while," Frankel said. "The only surprise was that Dior closed the day after Christmas, apparently quite abruptly."
Company officials declined to explain.
"We have no comment at this time," said a New York-based spokeswoman for Christian Dior, the Paris-based company owned by LVMH.
The French luxury-goods conglomerate also owns Louis Vuitton and Emilio Pucci and operates Vuitton and Pucci boutiques at 150 Worth Ave.
The 2,000-square-foot Dior boutique was, when it opened Nov. 1, 2003, the Paris house's 15th store in the United States and, at the time, one of three boutiques in the country selling the Dior fine jewelry collection.
"When you're in the luxury-goods business, you know that Palm Beach is a place we needed to be," Marla Sabo, former president and chief operating office of Christian Dior North America, said just before the store opened.
Florida Dior boutiques remain in operation at the Bal Harbour Shops north of Miami and at Orlando's Mall at Millennia.
Locally, Dior products are not available at either of the major department stores, Saks Fifth Avenue or Neiman Marcus, although Saks in Boca Raton does stock the label's merchandise.
The space formerly occupied by Dior at 202 Worth Ave. is owned by the Salvatore Ferragamo company under the Moda Imports Inc. name.
Ferragamo owns the entire building and the series of storefronts that skirt the southwest corner of County Road and Worth Avenue.
The building's tenants include Gypsy, the Ferragamo boutique, Valentino and Kaufmann de Suisse Jewelers. There are currently two vacant storefronts, the former Dior space at 202 and the former Emanuel Ungaro space at 440. S. County Road, which has remained empty since the September closing of that Paris-based fashion boutique.
The Ferragamo company's New Jersey-based real estate executives also had no comment on Dior's closure and could not confirm details about the leasing arrangements.
"We are sad to see Dior go," Frankel said. "While it's a loss for the Avenue, there is a prime retail spot now available that I'm certain will be filled swiftly with an equally prestigious retailer."
*******
Palm Beach's UNGARO boutique shutters after 11 years
By ROBERT JANJIGIAN
Daily News Fashion Editor
Wednesday, October 08, 2008
After an 11-year run, the Emanuel Ungaro fashion boutique abruptly closed up shop at 10 a.m. Wednesday.
The Paris fashion house opened the boutique at 440 S. County Road, just south of Worth Avenue, in November 1997. It was one of two Ungaro boutiques in the United States; the flagship American boutique is still operating in Manhattan.
"I think that Ungaro, along with many of the retailers in Palm Beach, was suffering due to the economic situation. I expect the season will be pretty quiet for business."
************
By ROBERT JANJIGIAN
Palm Beach Daily News Fashion Editor
Wednesday, January 07, 2009
For the past two years, rumors have swirled that the island's Christian Dior boutique was about to close, said Sherry Frankel, president of the Worth Avenue Association.
On the afternoon of Dec. 26, however, the rumor came true as the store was shuttered, signs atop the storefront removed quickly and windows covered with black paper.
"It didn't come as that much of a surprise, considering all the speculation about it closing that's been bandied down the Avenue for quite a while," Frankel said. "The only surprise was that Dior closed the day after Christmas, apparently quite abruptly."
Company officials declined to explain.
"We have no comment at this time," said a New York-based spokeswoman for Christian Dior, the Paris-based company owned by LVMH.
The French luxury-goods conglomerate also owns Louis Vuitton and Emilio Pucci and operates Vuitton and Pucci boutiques at 150 Worth Ave.
The 2,000-square-foot Dior boutique was, when it opened Nov. 1, 2003, the Paris house's 15th store in the United States and, at the time, one of three boutiques in the country selling the Dior fine jewelry collection.
"When you're in the luxury-goods business, you know that Palm Beach is a place we needed to be," Marla Sabo, former president and chief operating office of Christian Dior North America, said just before the store opened.
Florida Dior boutiques remain in operation at the Bal Harbour Shops north of Miami and at Orlando's Mall at Millennia.
Locally, Dior products are not available at either of the major department stores, Saks Fifth Avenue or Neiman Marcus, although Saks in Boca Raton does stock the label's merchandise.
The space formerly occupied by Dior at 202 Worth Ave. is owned by the Salvatore Ferragamo company under the Moda Imports Inc. name.
Ferragamo owns the entire building and the series of storefronts that skirt the southwest corner of County Road and Worth Avenue.
The building's tenants include Gypsy, the Ferragamo boutique, Valentino and Kaufmann de Suisse Jewelers. There are currently two vacant storefronts, the former Dior space at 202 and the former Emanuel Ungaro space at 440. S. County Road, which has remained empty since the September closing of that Paris-based fashion boutique.
The Ferragamo company's New Jersey-based real estate executives also had no comment on Dior's closure and could not confirm details about the leasing arrangements.
"We are sad to see Dior go," Frankel said. "While it's a loss for the Avenue, there is a prime retail spot now available that I'm certain will be filled swiftly with an equally prestigious retailer."
*******
Palm Beach's UNGARO boutique shutters after 11 years
By ROBERT JANJIGIAN
Daily News Fashion Editor
Wednesday, October 08, 2008
After an 11-year run, the Emanuel Ungaro fashion boutique abruptly closed up shop at 10 a.m. Wednesday.
The Paris fashion house opened the boutique at 440 S. County Road, just south of Worth Avenue, in November 1997. It was one of two Ungaro boutiques in the United States; the flagship American boutique is still operating in Manhattan.
"I think that Ungaro, along with many of the retailers in Palm Beach, was suffering due to the economic situation. I expect the season will be pretty quiet for business."
************
PALM BEACH ECONOMY WORSENING
PALM BEACH REAL ESTATE - bad..... worse NEWS
The news is getting worse. The latest sales (as of February 2009) indicate the "fall" of the last bastion in U.S. real estate.
Has the RECESSION reached PALM BEACH? Home sells for millions less than peak asking price
By MEGAN V. WINSLOW
Palm Beach Daily News Staff Writer
Wednesday, February 11, 2009
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, 6 1/2 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.
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.
Still, $5.96 million - $6.45 million with all the added fees - is "a good price" for a newly constructed home in a slow market, Gordon said.
The home's 6,140 square feet of living space translates the final sales price into more than $1,000 a square foot, he said.
********
Developer delays mansion work, says proceeding would be foolish
By JEFF OSTROWSKI
Palm Beach Post Staff Writer
Monday, February 16, 2009
When an eternal optimist like Frank McKinney says he's scared, you know times are tough.
The flamboyant developer has delayed construction of two oceanfront manses in Manalapan until the global economy recovers. McKinney had planned to build a $125 million castle and a $30 million estate on vacant land he owns just south of the Ritz-Carlton.
But now that the luxury market no longer is bulletproof, McKinney acknowledged that pushing forward would be "foolish."
"It's a pretty scary time - I know I'm scared," McKinney said last week. "This is the first time I have seen the wealthy affected by one thing and one thing only, and that's sentiment."
For now, he's focusing on selling Acqua Liana, on the market for $29 million. The Manalapan manse includes a number of eco-friendly features such as solar panels and wood from fast-growing trees like bamboo and coconut.
McKinney has built two dozen mansions in Palm Beach County. Over the past 10 years, McKinney said, his mansions have sold for an average of 5 percent below list price, and after 55 days on the market. But he doubted he'll sell so close to his asking price or so quickly.
"That's gonna be a tall order," he said.
As McKinney's caution suggests, the high end of the economy no longer lives in its own little fantasy world. A year ago, private jets were still selling, mega-yachts were moving, and home prices in the town of Palm Beach were soaring (even as prices in the county of Palm Beach were tanking).
Now, though, mansion sellers like Dru Schmitt have slashed prices. Schmitt sold his 23,000-square-foot palace in Boca Raton in January for $12.9 million, after originally listing it for $24.9 million. The deal was recorded at $10.9 million, but the buyer paid an extra $2 million for furniture, said the buyer's agent, Gary Pohrer of Fite Shavell.
In another example, E. Llwyd Ecclestone III accepted $11.3 million for a home in Lost Tree Village near North Palm Beach. The 13,080-square-foot house was listed at $15.9 million, said Ecclestone's listing agent, Dolly Peters of Illustrated Properties Real Estate.
Luxe retailers are hurting, too. Take Tiffany: The jeweler reported holiday sales plunged by 21 percent from a year ago, and it has offered early retirement packages to 800 employees. A few employees at Tiffany stores in Palm Beach and Palm Beach Gardens are said to be taking the offers.
And two Palm Beach boutiques - Christian Dior at 202 Worth Ave. andEmanuel Ungaro at 440 S. County Road - closed late last year.
The global meltdown has brought more setbacks for Rodger Krouse andMarc Leder, two titans of the private equity industry who run Sun Capital Partners of Boca Raton.
Both invested with Bernard L. Madoff Investment Securities, the massive Ponzi scheme, and appear on the list of victims released this month by a federal bankruptcy court.
"The investment in Madoff was a small personal investment made by our co-CEOs and represents an insignificant part of their investment portfolio," a Sun Capital spokesman said. "Sun Capital Partners and its limited partnerships did not make nor have ever made an investment with Madoff."
In January, Sun Capital laid off 23 workers, or 10 percent of its staff. And this month, another of Sun Capital's 90 or so portfolio companies sought bankruptcy protection. Fluid Routing Solutions, a Michigan-based supplier of auto parts, filed Chapter 11.
*************
Real Estate Agents buying house for way under property assessed value:
Real estate brokers buy 4BD in Palm Beach
by Christian Lambert, publishedTuesday, January 13 2009 12:42 PM
Christian J. Angle and Ann-Britt Angle bought a four-bedroom, 3.5-bath home at 280 Orange Grove Road in Palm Beach from Robert X. DeMarcellus and Mildred F. DeMarcellus for $1.067 million on Dec. 24.
**************
The news is getting worse. The latest sales (as of February 2009) indicate the "fall" of the last bastion in U.S. real estate.
Has the RECESSION reached PALM BEACH? Home sells for millions less than peak asking price
By MEGAN V. WINSLOW
Palm Beach Daily News Staff Writer
Wednesday, February 11, 2009
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, 6 1/2 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.
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.
Still, $5.96 million - $6.45 million with all the added fees - is "a good price" for a newly constructed home in a slow market, Gordon said.
The home's 6,140 square feet of living space translates the final sales price into more than $1,000 a square foot, he said.
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Developer delays mansion work, says proceeding would be foolish
By JEFF OSTROWSKI
Palm Beach Post Staff Writer
Monday, February 16, 2009
When an eternal optimist like Frank McKinney says he's scared, you know times are tough.
The flamboyant developer has delayed construction of two oceanfront manses in Manalapan until the global economy recovers. McKinney had planned to build a $125 million castle and a $30 million estate on vacant land he owns just south of the Ritz-Carlton.
But now that the luxury market no longer is bulletproof, McKinney acknowledged that pushing forward would be "foolish."
"It's a pretty scary time - I know I'm scared," McKinney said last week. "This is the first time I have seen the wealthy affected by one thing and one thing only, and that's sentiment."
For now, he's focusing on selling Acqua Liana, on the market for $29 million. The Manalapan manse includes a number of eco-friendly features such as solar panels and wood from fast-growing trees like bamboo and coconut.
McKinney has built two dozen mansions in Palm Beach County. Over the past 10 years, McKinney said, his mansions have sold for an average of 5 percent below list price, and after 55 days on the market. But he doubted he'll sell so close to his asking price or so quickly.
"That's gonna be a tall order," he said.
As McKinney's caution suggests, the high end of the economy no longer lives in its own little fantasy world. A year ago, private jets were still selling, mega-yachts were moving, and home prices in the town of Palm Beach were soaring (even as prices in the county of Palm Beach were tanking).
Now, though, mansion sellers like Dru Schmitt have slashed prices. Schmitt sold his 23,000-square-foot palace in Boca Raton in January for $12.9 million, after originally listing it for $24.9 million. The deal was recorded at $10.9 million, but the buyer paid an extra $2 million for furniture, said the buyer's agent, Gary Pohrer of Fite Shavell.
In another example, E. Llwyd Ecclestone III accepted $11.3 million for a home in Lost Tree Village near North Palm Beach. The 13,080-square-foot house was listed at $15.9 million, said Ecclestone's listing agent, Dolly Peters of Illustrated Properties Real Estate.
Luxe retailers are hurting, too. Take Tiffany: The jeweler reported holiday sales plunged by 21 percent from a year ago, and it has offered early retirement packages to 800 employees. A few employees at Tiffany stores in Palm Beach and Palm Beach Gardens are said to be taking the offers.
And two Palm Beach boutiques - Christian Dior at 202 Worth Ave. andEmanuel Ungaro at 440 S. County Road - closed late last year.
The global meltdown has brought more setbacks for Rodger Krouse andMarc Leder, two titans of the private equity industry who run Sun Capital Partners of Boca Raton.
Both invested with Bernard L. Madoff Investment Securities, the massive Ponzi scheme, and appear on the list of victims released this month by a federal bankruptcy court.
"The investment in Madoff was a small personal investment made by our co-CEOs and represents an insignificant part of their investment portfolio," a Sun Capital spokesman said. "Sun Capital Partners and its limited partnerships did not make nor have ever made an investment with Madoff."
In January, Sun Capital laid off 23 workers, or 10 percent of its staff. And this month, another of Sun Capital's 90 or so portfolio companies sought bankruptcy protection. Fluid Routing Solutions, a Michigan-based supplier of auto parts, filed Chapter 11.
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Real Estate Agents buying house for way under property assessed value:
Real estate brokers buy 4BD in Palm Beach
by Christian Lambert, publishedTuesday, January 13 2009 12:42 PM
Christian J. Angle and Ann-Britt Angle bought a four-bedroom, 3.5-bath home at 280 Orange Grove Road in Palm Beach from Robert X. DeMarcellus and Mildred F. DeMarcellus for $1.067 million on Dec. 24.
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