Interesting twist in S. FL's reality market

Reporter: Allison Bybee

Interesting news about the South Florida reality market. Florida is one of the hardest hit states. That is unless you live on Palm Beach. The real estate market there is flourishing.

You could say the rich are getting richer while the rest of our area suffers with poor home sales and decreasing prices; however, Palm Beach Island's prices are going up.

Les Evans, a real estate attorney in the town of Palm Beach put together the "Evans Report", a quarterly survey that shows how Palm Beach compares with the nation. "You've got a situation here that is going totally opposite [of] what's going on in West Palm Beach and a lot of the country. But there's niches around the country like this - niches where people are not looking at foreclosure."

Evans says the first nine months of 2007, compared to the same period last year, show single family home sales in Palm Beach increased only slightly, but the average sales price increased nearly 15 percent.

Why? "You've got decreased density and increase demand, and approximately 80 percent of all homes here are bought with cash."

The reason: A plot of land that used to hold two homes now only holds one. "Right there, supply and demand would force prices going down."

According to Les Evans, this trend could continue on to Jupiter Island and Singer Island. It's only a matter of time.

For the rest of Palm Beach County, the real estate market is off. We saw a 27 percent drop of the number of homes sold year to year. The median home price also dropped five percent.