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."
Showing posts with label PALM BEACH REAL ESTATE. Show all posts
Showing posts with label PALM BEACH REAL ESTATE. Show all posts
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 !!!!
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!
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Total Market Value $2,8 Million - SOLD for $1,650,000 !!!!!
This is a sale at $471 per square foot!
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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.
***
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.
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.
***
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.
Tuesday, February 24, 2009
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.
Monday, February 16, 2009
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 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.
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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.
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