Luxury Real Estate Market Prediction 2009

It is crystal ball time for the luxury real estate industry, and for once, the industry seems to be in agreement. A few optimistic Florida realtors aside, the consensus is there is only one way to go in 2009. More of the same and downward prices. The real question is whether we will see bottom and if so when. I have long been of the opinion that the only way to restart the market is realistic pricing, but I feel we have a ways to go just yet. I don't think any one is still hanging on to the dis-proven notion that the  High end Luxury market is completely insulated from the rest of the market, and the underlying fundamentals are affecting the entire market.

Donald Trump sells Luxury Palm Beach Mansion - At last

Donald Trump has managed to sell his $100 million Palm beach mansion at last. Thank goodness for the soft dollar I hear you cry.

He apparently managed to achieve this price after the property languished on the books for some time. Plus a drop of $25 million from the original asking price.

The property has changed hands a number of times over the years, and despite Mr. Trump's claim that it is "the best piece of land anywhere," it never seems to stay in the same hands for any length of time. Mr. Trump purchased the property back in 2004 for the paltry sum of $41.35 million. He then lavished an untold amount of money refurbishing the buildings, and according to the Palm Beach County Property Appraiser's Office, the current yearly tax bill is close to $1 million, so the profit margin is not quite as impressive as one might first think.

What I hear is, the new owner agrees with my assessment of the renovations and interior design - and plans to tear the thing down.

Which would make it one of the most expensive tear-downs in the history of Florida real estate I guess