The Coastal Quarterly: Q2, 2013

Page 1

Q2: April - June 2013


Table of Content

Coastal Mid Year Report........................3 Market Update........................................4 Single Family Homes...............................6 Condominiums and Townhomes.........10


Coastal Sotheby’s International Realty Mid-Year Report: January - June 2013 With the highest level of service and quality, we focus on providing extraordinary results. Comprised of a carefully selected team of professionals, our boutique real estate firm impresses with results that rival those of our biggest competitors in Palm Beach and Martin Counties.

$ Transactions

Million

Million

Sales Volume

115 $

Highest Sale

SIGNIFICANT SALES PALM BEACH - $11,500,000

SEMINOLE LANDING - $3,800,000

THE BEAR’S CLUB - $3,150,000

THE BEAR’S CLUB - $2,035,000


North Palm Beach Aerial

Market Update The second quarter sales volume continues to show a slow and steady recovery of the Northern Palm Beach and Martin Counties. The asset correction seen over the past 5 years is turning the corner and showing signs of stability and improvement. While lending requirements are still strict, the regulatory environment has certainly helped the real estate market recover by lessening its involvement. Nationally, many markets are experiencing pricing that is only 40%-50% of pre-bubble prices, so there is a long way to go. Locally, we are seeing closer to pre-bubble pricing, however. With the improvement in prices, more homeowners are coming into equity positions and less are considered underwater on their mortgages. We will likely see 2 and a half more years before the remainder of underwater sellers are out from under their upside down mortgages. We invite you to preview our quarterly report for further analysis of how various areas in our markets performed. Please feel free to contact one of our professionals for any assistance as you evaluate your own real estate plans this year.

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2nd Quarter Sales Price Analysis The sale of $1 Million and above priced homes, condos and townhomes in Palm Beach and Martin Counties represented about 5% of the transactions in the second quarter of 2013. Sales increased in each price point except for the $3 Million to $5 Million price range in the second quarter of 2013 compared to the second quarter of 2012.

3% 1% <1%

<1%

8%

$0 - $500K $500K-$1M $1M-$3M $3M-$5M $5M-$10M $10M+

88%

Q2 2012 vs. Q2 2013

Sales Price Range

$10M+ $5M-$10M $3M-$5M

Q2 2012 Q2 2013

$1M-$3M $500K-$1M 0

Source : FLEX MLS

200 400 600 800 Number of Homes, Condos, Townhomes

1000

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Single Family Homes Harbour Isles, North Palm Beach

Although the number of transactions remained relatively the same, sales prices for single family homes gained significant momentum in the second quarter of 2013 compared to the second quarter of 2012 in both Palm Beach and Martin counties. While this may seem reminiscent of the boom years, sellers should understand that the fundamental principle of properly priced homes is true now more than ever. Stricter mortgage guidelines allow for only a small appreciation of home prices year over year to be tolerated by lenders. While the single family home market in Palm Beach County only increased approximately 1% in total number of sales, the average sales price increased by over 27% from Q2 of 2012. Average days on market decreased from 135 to 118 year over year. Cities showing the largest increase in the number of sales included Jupiter, Tequesta and Wellington. Compared to Q2 2012, Martin County’s number of transactions increased by 5% and the average sales price increased by 7%. Average days on market for single family homes decreased from 145 to 133. Hobe Sound and Jupiter Island both saw large increases in average sales prices. Coastal Sotheby’s International Realty


Total Sales 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island

Total # of Sales Q2: 2012 4127 649 16 308 42 286 8 3 42 587 268 93 8

Total # of Sales Q2: 2013 4174 685 13 324 32 334 7 1 54 537 311 99 7

Avg. Sales Price Q2: 2012 $360,676 $373,066 $490,770 $517,814 $506,915 $475,435 $1,647,812 $879,667 $653,224 $184,168 $521,834 $302,690 $2,596,875

Avg. Sales Price Q2: 2013 $445,243 $401,666 $646,412 $510,206 $715,079 $604,987 $1,512,000 $775,000 $540,106 $242,710 $596,485 $399,121 $3,680,714

Avg. Price Per SF Q2: 2012 $131.59 $134.43 $247.35 $167.26 $201.67 $169.09 $385.55 $382.25 $234.63 $91.15 $148.06 $125.92 $671.09

Avg. Price Per SF Q2: 2013 $162.39 $150.65 $255.98 $177.88 $253.50 $202.22 $292.50 $406.40 $190.60 $115.57 $194.26 $163.91 $888.61

% change +1.14% +5.55% -18.75% +5.19% -23.81% +16.78% -12.50% -66.67% +28.57% -8.52% +16.04% +6.45% -12.50%

Average Sales Price 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island

% change +23.45% +7.67% +31.71% -1.47% +41.06% +27.25% -8.24% -11.90% -17.32% +31.79% +14.31% +31.86% +41.74%

Average Price Per Square Foot 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island Source : FLEX MLS

% change +23.41% +12.07% +3.49% +6.35% +25.70% +19.59% -24.13% +6.32% -18.77% +26.79% +31.20% +30.17% +32.41%

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Single Family Homes

Q2: 2012

Q2: 2013

Palm Beach County

135

118

Martin County

145

133

Singer Island

154

111

Palm Beach Gardens

178

134

North Palm Beach

127

98

Jupiter

151

152

Juno Beach

267

134

Jupiter Inlet Colony

467

137

Tequesta

160

180

West Palm Beach

123

112

Wellington

154

115

Hobe Sound

159

128

Jupiter Island

349

278

Average Days on Market

Key Observations 

Jupiter, Tequesta and Wellington saw tremendous gains in the number of transactions.

Average days on the market decreased in 85% of the markets.

North Palm Beach saw a substantial 41% increase in the average sales price from $506,000 to $715,000.

Wellington continued to strengthen with increases in the number of sales, average sales price and average price per square foot.

The average sales price in Jupiter climbed over 27% from $475,000 to $604,000 in Q2 2012 to Q2 2013.

Coastal Sotheby’s International Realty

Source : FLEX MLS


Most Active Luxury Communities in Sales 2nd Quarter 2013

PGA National, Palm Beach Gardens

Abacoa, Jupiter

BallenIsles, Palm Beach Gardens

Source : FLEX MLS

Ibis Golf & Country Club, WPB

Mirasol, Palm Beach Gardens

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Condominiums & Townhomes

Old Port Cove, North Palm Beach

Northern Palm Beach and Martin Counties condominium and town home sales displayed consistent progress when comparing the 2nd quarter of 2012 to the 2nd quarter of 2013. What has become abundantly clear in this new market, is that turnkey condominiums, which include nicely decorated properties with up-to-date systems and structures, are the most highly desired properties and command the highest prices in their range. Buyers have become increasingly discriminating and cautious buyers are keeping a close eye on valuations. Similar to the single family numbers, Palm Beach County condo and town home sales decreased by less than 1% but average sales price and average price per square foot increased by 24% and 24%, respectively. Much of the city data shows decreases in the number of sales which indicates a shortage in inventory. Cities showing the largest increase in the number of sales included Palm Beach Gardens and Juno Beach. Compared to Q2 2012, the number of transactions in Martin County increased by 18% and the average sales price increased by 8%. Average days on the market decreased from 141 to 131 days. Hobe Sound saw significant increases in both the number of sales and average sales prices.

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Total Sales 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island

Total # of Sales Q2: 2012 4268 363 75 179 78 248 26 1 55 768 82 40 23

Total # of Sales Q2: 2013 4249 430 77 231 78 268 35 0 43 715 81 47 12

Avg. Sales Price Q2: 2012 $165,403 $131,537 $517,637 $170,919 $160,892 $232,954 $441,385 $137,000 $298,417 $82,851 $186,741 $115,311 $669,626

Avg. Sales Price Q2: 2013 $206,200 $143,225 $607,543 $204,331 $212,674 $241,026 $431,869 N/A $232,988 $195,065 $210,917 $167,149 $540,676

Avg. Price Per SF Q2: 2012 $102.28 $89.27 $244.00 $111.81 $106.63 $151.92 $234.45 $128.88 $162.55 $65.72 $109.00 $79.46 $292.45

Avg. Price Per SF Q2: 2013 $137.22 $99.34 $279.39 $128.14 $138.60 $154.40 $229.00 N/A $132.80 $193.09 $129.28 $101.71 $301.42

% change -0.45% +18.46% +2.67% +29.05% 0.00% +8.06% +34.62% -100.00% -21.82% -6.90% -1.22% +17.50% -47.83%

Average Sales Price 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island

% change +24.67% +8.89% +17.37% +19.55% +32.18% +3.47% -2.16% N/A -21.93% +135.44% +12.95% +44.95% -19.26%

Average Price Per Square Foot 2nd Quarter 2012 vs. 2nd Quarter 2013 Palm Beach County Martin County Singer Island Palm Beach Gardens North Palm Beach Jupiter Juno Beach Jupiter Inlet Colony Tequesta West Palm Beach Wellington Hobe Sound Jupiter Island

% change +34.16% +11.28% +14.50% +14.61% +29.98% +1.63% -2.32% N/A -18.30% +193.81% +18.61% +28.00% +3.07%

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Condominiums & Townhomes

Q2: 2012

Q2: 2013

Palm Beach County

136

118

Martin County

141

131

Singer Island

202

188

Palm Beach Gardens

145

103

North Palm Beach

198

127

Jupiter

135

153

Juno Beach

178

162

Jupiter Inlet Colony

73

0

Tequesta

235

253

West Palm Beach

104

92

Wellington

151

127

Hobe Sound

135

165

Jupiter Island

252

508

Average Days on Market

Key Observations 

70% of the Palm Beach and Martin County areas reported lower average days on market, with West Palm Beach at the lowest of 92.

Overall, West Palm Beach and Hobe Sound showed the most improvement in the Condominium and Town Home markets.

Juno Beach saw huge improvements in the number of transactions, however, the average price per square foot and average sales price went down slightly from one year ago.

Singer Island saw a 14% increase in the average price per square foot and average sales price to $607,000.

Coastal Sotheby’s International Realty

Source : FLEX MLS


Most Active Condominiums and Townhomes in Sales 2nd Quarter 2013

PGA National, Palm Beach Gardens

Abacoa, Jupiter

Marina at The Bluffs, Juptier

Two City Plaza, West Palm Beach

Admirals Cove, Jupiter

Source : FLEX MLS

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11601 Kew Gardens Avenue, Suite 101 Palm Beach Gardens, FL 33410 t. 561.694.0058

I

f. 561.694.0106

I

info@coastalsir.com

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