Jeff Cloninger.com - Broker's Newsletter

Palm Beach is usually the last to feel economic unpleasantness, and the first to recover, but this winter offered some extraneous emotional blows that were rather unexpected. The jolt to the stock market, the general state of the world economy (and one particular financial hoodlum who focused the attention of the nation's press on Palm Beach) temporarily left its mark on our elegant town. With typical grace and dignity, Palm Beach has not only survived these events, but, according to many long-time residents, the town has never looked more beautiful this early in the Spring! Palm Beach real estate values have successfully navigated around the world's problems for well over one hundred years. We always come back better and stronger - this year will be no exception.

The most noticeable remnant of this past season can be seen in the present real estate market. When this turbulent period passes, most properties in town will prove to have at least maintained their value, if not appreciated. Due to the number of houses and condominiums for sale - and the dramatic slow-down in sales transactions - HERE'S THE GREAT NEWS - we are experiencing the most incredible buyer's market I think any of us will ever see again in our lifetimes. All markets are cyclical, and I believe we are at or near the bottom of the present cycle right now. I truly believe NOW is the time to dust off the old checkbook and begin buying property again.

It's important to remember that in Palm Beach our slow down in sales didn't just begin in the fourth quarter of last year, when trusted financial institutions showed signs of vulnerability. Our sales "slump" began in mid-2005, so we've had an unprecedented four years of lackluster volume, all the while our median sales price has continued to increase! I think we're the only place in the U.S. where that has happened! That said, we are well-positioned for a resurgence. With dwindling confidence in international markets, Palm Beach will soon regain her place in the hearts of wealthy investors worldwide. This island has always been viewed as a "safe" investment, and one that is considerably more enjoyable than certificates sitting in a bank vault.

Those with an immediate need to sell are the ones who are experiencing a little discomfort. The shortage of buyers is discouraging to today's sellers - with the obvious result being increased pricing competition. But, sellers take heart - and buyers take notice - this won't last forever. My best advice is for buyers to buy now, and for sellers to be patient - your time is coming soon. I know from experience that properties in Palm Beach that are priced right will always sell, sometimes it just takes a little longer.

Who wants to buy at the top? That's called a seller's market. Want to experience a virtual smorgasbord of available properties, with realistic pricing and sincerely motivated sellers? That's called a buyer's market, and that's precisely where we are. A word to the wise, buyer's markets don't last forever!

I believe that forward-thinking investors understand that the present economy should not be viewed as a "crisis,' but rather as an "opportunity" to begin planting the seeds for their next fortune. I believe those "seeds" are best planted in the fertile soil of the Palm Beach real estate market. I am personally 100% invested in real estate, and I continue (in '09) to add to my own portfolio. Can one buy today and "flip" for a quick profit? No Way! Can a buyer with a little patience purchase today and realize a very respectable profit in the not-too-distant future? I wouldn't be in this business today if I didn't believe that to be true. There are opportunities out there right now that I believe will return multiples of what other investments will within just a few years. Call it a "hunch" or an educated guess, but my real estate recommendations have made many people in Palm Beach millions of dollars.

As many of you know, I have been fortunate to have created an enviable track record in Palm Beach real estate over these last fifteen years. My past performance and "on-track" advice to clients allows me to assert that over 90% of my business is either repeat or referral. We are pleased to announce that so far this year, Jeffrey A. Cloninger & Associates, Inc. has sold more Palm Beach homes (per Palm Beach Board of Realtors' Multiple Listing Service data - Q1 '09) than any other brokerage firm.

Suffice it to say - I love being a buyer today, and I'll probably enjoy being a seller next season. As Will Rogers said almost 100 years ago, "you don't wait to buy real estate....you buy real estate and wait." Despite the ups and downs in the world over the last century, can you think of anyone with a modicum of patience who hasn't made money in real estate?

SOME FACTS ABOUT OUR PRESENT MARKET

Houses Currently Available (As of April 28, 2009)*

	TOWN TOTAL	NORTH END North of Wells Rd.	MIDTOWN Wells Rd. to Worth Ave.	ESTATE SECTION South of Worth Ave. to Sloan's Curve
	253	127	76	50
Under $2 Million	41	24	17	0
$2 - 5 Million	119	62	47	10
$5 - 10 Million	55	29	10	16
$10 - 20 Million	30	9	1	20
Over $20 Million	8	3	1	4

Houses Sold (November 1, 2008 Thru April 28, 2009)*

	TOWN TOTAL	NORTH END North of Wells Rd.	MIDTOWN Wells Rd. to Worth Ave.	ESTATE SECTION South of Worth Ave. to Sloan's Curve
	15	8	6	1
Under $2 Million	3	2	1	0
$2 - 5 Million	7	3	4	0
$5 - 10 Million	4	3	1	0
$10 - 20 Million	1	0	0	1
Over $20 Million	0	0	0	0

Available Condos (As of April 28, 2009)*

	TOWN TOTAL	IN-TOWN Wells Rd. to Worth Ave.	SOUTH END South of Sloan's Curve
	616	237	379
Under $500K	252	45	207
$500K - Million	196	86	110
$1 - 2 Million	113	68	45
$2 - 3 Million	37	22	15
Over $3 Million	28	22	6

Condos Sold (November 1, 2008 thru April 28, 2009)*

	TOWN TOTAL	IN-TOWN Wells Rd. to Worth Ave.	SOUTH END South of Sloan's Curve
	70	19	51
Under $500K	40	8	32
$500K -1 Million	14	2	12
$1 - 2 Million	9	3	6
$2 - 3 Million	4	4	0
Over $3 Million	3	2	1

Townhouses Currently Available In-Town*

(Wells Road to Worth Avenue)

TOTAL AVAILABLE	13
Under $500K	0
$500K -1 Million	0
$1 - 2 Million	2
$2 - 3 Million	5
Over $3 Million	6

Townhouses Sold In-Town (November 1, 2008 thru April 28, 2009)*

(Wells Road to Worth Avenue)

TOTAL CLOSED	0
Under $500K	0
$500K -1 Million	0
$1 - 2 Million	0
$2 - 3 Million	0
Over $3 Million	0

* Information per Palm Beach Board of Realtors' Multiple Listing Service (MLS)

Easter has come and gone, invitations in the mailbox are noticeably fewer, the auto-transport trucks have reappeared on our streets, and season '08/'09 is fading into history - and, from the perspective of many, not a moment too soon!