The Coastal Quarterly Q3 2016 by CSIR

Q3: July - September 2016

Table of Contents Coastal SIR Q3 Report....................3

Market Update............................................4

Sale Price Analysis.......................................5

Single Family Homes...................................6

Condominiums and Townhomes..............10

Coastal Sotheby’s International Realty & The Bear’s Club Sotheby’s International Realty Year-to-Date Report: January - September 2016 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.

SIGNIFICANT SALES The Bears Club - $8,500,000

Jupiter Island - $3,500,000

Boca Raton - $4,625,000

Old Palm - $3,319,000

Coastal Sotheby’s International Realty

Market Update

3rd Quarter of 2016

Nationally, the third quarter of 2016 proved to be strong, but it is also starting to show signs of softening. Interest rates are still at historical levels but are inching higher and analysts predict that the Feds will raise rates in December. According to the Mortgage Bankers Association, mortgage applications started falling after the slight increase in rates. The National Association of Realtors reports that pending home sales have fallen three straight months in a row. All of these changes indicate the market may have hit a soft patch which is typical during a Presidential Election year. This is especially true for the luxury market as luxury buyers take a pause from big ticket purchases, including homes. The South Florida housing market also shows signs of cooling. The Miami condominium market is oversaturated and some developers are postponing projects. The Northern Palm Beach County and Martin County markets showed the same signs of cooling. Inventory levels increased 15% compared to the same time last year and the number of pending listings stayed nearly the same as one year ago. Despite this softening, prices remained strong and continued to increase in many of the Northern Palm Beach communities. One of the most notable trends of 2016 has been the demand for fully renovated properties. Buyers place a huge premium on the value of their time - some will actually overpay as they would rather spend the money than spend their time renovating. These renovated homes are keeping the sales prices elevated and unfortunately, too many sellers use these anomalies to overprice their own homes. The overpricing of homes explains the sharp increase in inventory. Buyers are savvy and will pass on an overpriced home rather than make an offer that may insult the seller. Sellers that are â&#x20AC;&#x153;waiting for the right buyerâ&#x20AC;? will often go through several price reductions and several agents before actually selling their homes. In this transition to a more balanced market, there are still silver linings and opportunities to be had by both buyers and sellers. A more balanced market means that buyers can and should still take advantage of the low interest rates before they inevitably rise. With rising inventory levels, Buyers should have more choices of properties and need to be able to act quickly on them as they come onto the market. For sellers, the good news is that prices are still on the rise. This is a great time to list before the inventory is saturated; prices slow down or decrease; and before interest rates rise for buyers. A properly priced, newly renovated home will sell quickly in this market. We invite you to preview our quarterly report for further analysis of how various areas in our markets performed compared to the same time last year. Please feel free to contact one of our professionals for any assistance as you evaluate your own real estate plans this year. Coastal Sothebyâ&#x20AC;&#x2122;s International Realty

3rd Quarter Sales Price and Inventory Analysis The number of sales increased in all price points for Palm Beach and Martin Counties as a whole in the 3rd quarter of 2016 compared to the 3rd quarter of 2015 for homes, condos and townhomes. Most individual communities in Northern Palm Beach County saw a decline, however. The number of active listings increased by 15% and pending listings stayed the same in Northern Palm Beach and Martin Counties from the same time last year.

5 Source : FLEX MLS

Coastal Sothebyâ&#x20AC;&#x2122;s International Realty

Single Family Homes The number of transactions decreased by 8% in Palm Beach County and decreased by 11% in Martin County for single family homes in the third quarter of 2016 compared to the third quarter of 2015. The change in average sales prices and price per square foot varied throughout the communities; however, Jupiter, West Palm Beach and Wellington reported the largest increases. Buyers are still paying above market value for turnkey single family homes that are completely renovated when sales are not contingent upon appraisals.

Total Sales 3rd Quarter 2015 vs. 3rd Quarter 2016 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 Q3:2015 4629 756 10 296 50 354 7 0 54 665 343 92 6

Total # of Sales Q3:2016 4264 672 10 291 42 315 2 1 41 564 310 99 1

% change -7.89% -11.11% 0 -1.69% -16.0% -11.02% -71.43% 0.00% -24.07% -15.19% -9.62% 7.61% -83.33%

Avg. Sales Price Q3:2015 $435,438 $417,846 $796,860 $561,713 $767,861 $554,284 $634,714 $0 $615,866 $293,853 $420,462 $563,802 $3,833,333

Avg. Sales Price Q3:2016 $501,128 $435,942 $628,400 $567,976 $689,488 $662,144 $500,000 $800,000 $661,202 $342,043 $608,801 $420,916 $2,550,000

% change 15.09% 4.33% -21.14% 1.11% -10.21% 19.46% -21.22%

Avg. Price Per SF Q3:2015 $174.69 $173.39 $299.15 $199.84 $296.59 $217.28 $276.34 $0.00 $234.58 $139.83 $159.75 $285.24 $2,102.88

Avg. Price Per SF Q3:2016 $197.16 $175.18 $316.83 $213.19 $264.19 $241.62 $315.45 $575.95 $263.00 $187.87 $202.84 $180.63 $783.65

% change 12.86% 1.03% 5.91% 6.68% -10.92% 11.20% 14.15%

Average Sales Price 3rd Quarter 2015 vs. 3rd Quarter 2016 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

7.36% 16.40% 44.79% -25.34% -33.48%

Average Price Per Square Foot 3rd Quarter 2015 vs. 3rd Quarter 2016 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 Coastal Sothebyâ&#x20AC;&#x2122;s International Realty Jupiter Island Coastal Sothebyâ&#x20AC;&#x2122;s International Realty

12.12% 34.36% 26.97% -36.67% -62.73% Source : FLEX MLS

Single Family Homes Community Spotlight Frenchman’s Reserve Palm Beach Gardens, FL

Frenchman’s Reserve is a premier country club community in prestigious Palm Beach Gardens, Florida featuring a spectacular Arnold Palmer Signature Golf Course. This country club community is unlike any other with close proximity to world renowned shopping & restaurants. With superb club amenities, endless activities & outstanding residential choices, the lifestyle at Frenchman’s Reserve is among the finest & most sought-after in South Florida.

Average Days on Market Comparison Average Days on Market 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

Q3:2015 61 77 92 83 60 57 36 0 45 57 82 109 436

Q3:2016 63 74 78 85 68 63 4 174 110 53 102 61 94

% change 3.28% -3.90% -15.22% 2.41% 13.33% 10.53% -88.89% 144.44% -7.02% 24.39% -44.04% -78.44%

Key Observations     

Approximately half of the communities in Northern Palm Beach County and Martin County reported lower days on market The number of transactions decreased in all markets except Hobe Sound which increased by 7% Juno Beach saw significant decreases in the number of transactions (down from 7 sales in Q3 2015 to 2 sales in Q3 2016) Jupiter Island saw the largest decreases across the board (number of transactions, average sales price, average price per square foot). The number of sales decreased from 6 in Q3 2015 to 1 in Q3 2016 Days on market decreased in about half of the markets 7 Coastal Sotheby’s International Realty

Condominiums & Townhomes The number of transactions decreased by 9% in Palm Beach County and increased by 4% in Martin County for condos and townhomes in the third quarter of 2016 compared to the third quarter of 2015. The counties saw 7% and 3% increases, respectively, in the average sales prices though. During the 3rd quarter, days on market decreased significantly in most of the communities.

Total # of Sales Q3:2015 4225 328

Total # of Sales Q3:2016 3857 342

62 242 50 242 36 0 41 747 84 33 14

60 244 76 229 31 0 31 671 70 39 6

% change -8.71% 4.27% -3.23% .83% 52.0% -5.37% -13.89% 0 -24.39% -10.17% -16.67% 18.18% -57.14%

Avg. Sales Price Q3:2015 $204,065 $166,249 $848,439 $216,338 $240,038 $285,436 $580,162 0 $223,580 $129,019 $219,610 $205,055 $627,135

Avg. Sales Price Q3:2016 $218,015 $171,800 $507,032 $241,394 $254,187 $301,290 $551,452 0 $551,542 $142,739 $207,074 $175,587 $825,144

% change 6.84% 3.34% -40.24% 11.58% 5.89% 5.55% -4.95% 0 146.69% 10.63% -5.71% -14.37% 31.57%

Avg. Price Per SF Q3:2015 $136.47 $117.95 $343.68 $147.34 $167.57 $182.96 $336.64 0 $152.34 $103.42 $137.19 $131.99 $336.23

Avg. Price Per SF Q3:2016 $147.71 $122.94 $287.16 $158.90 $174.99 $196.50 $229.05 0 $299.05 $114.95 $137.01 $127.42 $392.55

% change 8.24% 4.23% -16.45% 7.85% 4.43% 7.40% -11.17% N/A 96.30% 11.15% -.13% -3.46% 16.75%

Average Price Per Square Foot 3rd Quarter 2015 vs. 3rd Quarter 2016 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 Coastal Sothebyâ&#x20AC;&#x2122;s International Realty

Source : FLEX MLS

Condominiums & Townhomes Community Spotlight The Landmark Palm Beach Gardens, FL

The Landmark is Palm Beach Gardens only luxury highrise condominium with 166 residences. This petfriendly community offers 24 hour valet and concierge services, an amenity deck featuring a social room with bar lounge, media room with theatre seating and library. On the Sun Deck, residents enjoy a state-of the art fitness center with steam rooms, heated pool, game room and expansive BBQ area. Steps from world class shopping and outstanding dining. Only one property offers the ultimate lifestyle package, combining the highest construction quality and levels of service with a picturesque lakeside setting with all of the most desirable conveniences.

Q3:2015 70 80 155 56 92 57 87 0 92 71 84 43 216

Q3:2016 68 61 164 54 81 53 118 0 60 65 72 47 161

% change -2.86% -23.75% 5.81% -3.57% -11.96% -7.02% 35.63% 0 -34.78% -8.45% -14.29% 9.30% -25.46%

Key Observations     

Nearly all of the communities reported a decrease (6% to 43%) in the number of transactions from the same time last year with the exception of North Palm Beach and Hobe Sound The number of transactions decreased in Hobe Sound by 43% year over year, but the average sales price increased by 8% Most markets that saw a decrease in transactions reported an increase in average sales prices except Singer Island, Juno Beach and Wellington Across the board, North Palm Beach saw the most improvement in number of sales and average sales prices Tequesta reported a significant decrease in the number of transactions, but a very large increase in the average sales prices and average price per square foot 9 Coastal Sotheby’s International Realty

Palm Beach Gardens Office 11601 Kew Gardens Ave., Ste. 101 Palm Beach Gardens, FL 33410 t. 561.694.0058 I f. 561.694.0106 Jupiter Office 2159 S US Highway One Jupiter, FL 33477 t. 561.932.1832 I f. 561.427.0058

Stuart Office 451 SE Riverside Drive Stuart, FL 34994 t. 772.337.8250 I f. 772.678.7868

info@coastalsir.com

© 2014 Coastal Sotheby’s International Realty © MMX Sotheby’s International Realty Affiliates LLC. A Realogy Company. All Rights Reserved. Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. If your property is presently listed with another brokerage, please consider this advertisement a source of information and not a solicitation. All information is deemed reliable but not guaranteed. Each office is Independently Owned and Operated.