Mansion market takes hit

The Palm Beach Board of Realtors said reality has caught up with the market for luxury homes on the exclusive island. Only 16 sales closed during the last three months of 2008, down from 25 deals in the fourth quarter of 2007. The median price of Palm Beach single-family homes sold between October through December fell to $2.7 million, down 20 percent from $3.4 million in the fourth quarter of 2007. For the few sellers who sold at a loss in 2008, a typical price decline ranged from 3 percent to 14 percent, a lower rate of decline than in the rest of the county.