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.
***
Saturday, March 28, 2009
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....."
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