2011 Year in Review Trends Magazine

Page 1

TRENDS

2011 YEAR IN REVIEW


2011 YEAR IN REVIEW

Absorption summarizes 2011 in one word. The inventory of available residential properties for sale dropped by one third, moving the market from a balanced inventory to a shortage. Miami specifically has been on every Top Ten Recovery list published this year and typically leads in the number one position. Prices have increased in almost every market segment. REO inventory was below 1,200 properties by the end of the year, which is equal to the amount of those properties sold in a month. Virtually every measurable indicator signals a strong real estate recovery in spite of the lack of real economic recovery, which points to the fact that the market continues to be bolstered by foreign investment. Prices are definitely on the rise. Some micro markets have seen as much as a 40% increase in pricing from the same time in 2010. Overall, the average price per square foot is up about 14% in Miami-Dade and 3% in Broward. Although the prices are up from 2010, prices have recovered to 2004 level pricing, still significantly lower than the high prices of 2007. There are still good values in many areas. The luxury market continues to improve. The number of sales of properties over $1 Million in 2011 is higher than in 2007 and just below 2006, when these properties were trading at an all-time high. The super luxury market continues to evolve with four closed sales over $20 million in 2011. Looking forward, the real issue is not shadow inventory but more maintaining a cautious eye towards irrational exuberance. Absorption will continue and pricing in some areas will continue to rise as the inventory dwindles. Things are certainly better, but real economic recovery lags behind the real estate recovery.

Shelia Gasson ONE Sotheby’s International Realty 305 323 0963 www.MiamiHouseValues.info


YEAR IN REVIEW

2011

CORAL GABLES Santona Corner 1430 S Dixie Highway, Suite 110 Coral Gables, Florida 33146

MIAMI BEACH Ocean Drive 1451 Ocean Drive, Suite 104 Miami Beach, Florida 33139

MIAMI BEACH South of Fifth 119 Washington Avenue, Suite 102 Miami Beach, Florida 33139

FORT LAUDERDALE Las Olas 888 E Las Olas Boulevard, Suite 110 Fort Lauderdale, Florida 33301

KEY BISCAYNE The Galleria Mall 328 Crandon Boulevard, Suite 222 Key Biscayne, Florida 33149

AVENTURA Northern Trust Building 18901 NE 29 Avenue, Suite 101 Aventura, Florida 33180


Key Observations It seems that the epicenter of the South Florida real estate recovery was Miami Beach, where prices of sold properties in the $1 million plus category ended up 2011 at just over $1,000 a square foot. As prices recovered, other areas began to go through the same cycle. By the end of 2011, all waterfront areas were experiencing increased sales activity and inventory was down significantly with prices starting to move upwards.

04

I TRENDS

O N E S O T H E B Y S R E A L T Y. C O M


YEAR IN REVIEW

62%

SUPER LUXURY

In 2011, there were four sales over $20 Million. ONE Sotheby’s International Realty participated in three out of four of these sales. Source: Southeast Florida Regional MLS

REALTOR CONFIDENCE

2011

23 LOOKING UP

The number of U.S Realtors that believe home prices will increase over the next twelve months. Consider it the real estate equivalent to the consumer confidence index.

That’s the total number of new construction projects currently planned in Miami-Dade and Broward counties. Source: Condo Vultures, LLC

Source: NAR Research

“Foreign buyers with strong currencies complemented by a scattering of wealthy domestic purchasers acquired more $1 Million+ condos in 2011 than in the last year of the South Florida real estate boom in 2006. The luxury condo revival is Miami-Dade County is not occuring at the same pace in Broward County, where foreign buyers play a somewhat more limited role in transactions.” THE MIAMI HERALD, January 2012

200 BUSINESS FRIENDLY

SOCIALLY SIGNIFICANT

SIGNIFICANT SALES

Source: Southeast Florida Regional MLS

Source: The Social Marketer

Source: Southeast Florida Regional MLS

The number of new retail and restaurant establishments added to the Brickell and Downtown Miami area in the last 5 years.

O N E S O T H E B Y S R E A L T Y. C O M

Facebook is currently the single largest publisher of all US display ad impressions, delivering 28% of all display ad impressions - more than Yahoo, Google and AOL combined.

ONE Sotheby’s International Realty sold this Miami Beach penthouse for $21.5 Million in December 2011, making it the highest selling condo ever sold south of New York City. TRENDS I

05


At a Glance: 2011 The sale of $1 Millon dollar homes in Miami-Dade and Broward counties represented 3.2% of the total sales in 2011, up from 2.8% in 2010. Homes over $1 Million were purchased with cash, as opposed to financed, 50% of the time in both 2010 and 2011. For those homes sold under $1 Million, cash sales made up 37% in 2010 and 41% in 2011. Financing continued to have record low rates, yet remained a challenge for many home buyers. Under $1 Million Over $1 Million

Sold 2011 On The Market

$500K - $1M

PRICE RANGE

$1M - $3M

$3M - $5M

$5M - $10M

$10M+ 0

500

1000

1500

2000

NUMBER OF HOMES Source: Southeast Florida Regional MLS.

06

I TRENDS

Source: Southeast Florida Regional MLS.

O N E S O T H E B Y S R E A L T Y. C O M


Traditional Sales Short Sales Bank-Owned Properties

YEAR IN REVIEW

2011

Month by Month March continued to be the highest sale month in both Broward and Miami-Dade County. Together both counties had total homes sold of 5,680 in March, the highest month, compared to 4,081 in November. Broward County

Miami-Dade County 6000

SHADOW INVENTORY

Short sale and REO properties currently make up only 2.3% of all homes on the market in South Florida for $1M+ homes and condos. This is down slightly from 2.9% at mid year 2011. There are 7 bank owned condos and homes in Miami and Dade, similar to the 6 properties on the market in the middle of 2011. Source: Southeast Florida Regional MLS.

6.8

NUMBER OF HOMES SOLD

4500

Source: Trendgraphix

O N E S O T H E B Y S R E A L T Y. C O M

1500

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

MONTH

Source: Trendgraphix

Average Sales Price Average sales prices remained almost the same in Broward and Miami-Dade counties compared to the past two years. The high in Broward in 2011 was $199,000, compared to $197,000 in the previous two years. The high in Miami-Dade peaked at just over $300,000 in July, compared to just under $300,000 for the previous two years. Broward County

Miami-Dade County $300K

MARKET SHIFT

$200K

PRICE

The number of months of inventory were extremely low compared to prior years in both Broward and Dade counties. Six to nine months are considered a stable market. Broward enjoyed most months in the 5-6 month range most of 2011. Currently, Broward has a 6.8 month inventory, compared to 8.4 months this time last year. Miami-Dade enjoyed a 6-7 month inventory most of the year, with a current inventory of 8.6 months compared to 10.2 months this time last year. Both counties crested with a 3-4 year supply in 2008.

3000

$100K

$0

Jan

Feb

Mar

Source: Southeast Florida Regional MLS

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

MONTH

TRENDS I

07


South of Miami CORAL GABLES COCOPLUM SNAPPER CREEK LAKES GABLES ESTATES OLD CUTLER WATERFRONT PONCE DAVIS, HIGH PINES COCONUT GROVE PINECREST PALMETTO BAY

4845 Southwest 80 Street, Coral Gables Offered at $3,995,000


IN DEPTH COMMUNITY PROFILES

OVERVIEW

Coral Gables

Waterfront Properties

Single Family Homes

Condos ($1M+)

# of Transactions

Average Sales Price

Median Sales Price

2010

56

$2,864,871

$2,562,500

11%

2011

57

$2,412,753

$1,825,000

4%

Change

2%

-16%

-29%

# of Transactions

Average Sales Price

Median Sales Price

2010

10

$2,296,000

$1,255,000

-

2011

9

$1,218,922

$1,192,800

-

-10%

-47%

-5%

Change

% of REO Sales

Coral Gables waterfront homes are one of the few categories of properties that did not show positive movement in 2011. Number of transactions were flat while other indicators slipped. The number of foreclosures did decrease considerably, from 11% in 2010 to 4% in 2011. Along with Coral Gables waterfront single family homes, waterfront condos over $1,000,000 also experienced downward trends in every indicator including average and median sales prices. 2011 saw no sales over $2,000,000 while 2010 had three.

% of REO Sales 130 Casuarina Concourse, Coral Gables Offered at $8,495,000

OVERVIEW

Coral Gables All indications of a changing market were positive. Transactions, average and median sale price all had double digit increases. Of all sales in Coral Gables, 25% were $1,000,000 or higher, up from 15% in 2010.

Non-Waterfront Properties

1415 Sevilla Avenue, Coral Gables Offered at $3,875,000 O N E S O T H E B Y S R E A L T Y. C O M

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

352

$684,131

$512,500

11%

2011

419

$793,791

$579,500

8%

Change

19%

16%

13% TRENDS I

09


IN DEPTH COMMUNITY PROFILES

CORAL GABLES

Cocoplum Waterfront Properties

Single Family Homes

2010 2011 Change

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

8

$3,146,250

$3,022,500

-

10

$3,858,500

$3,500,000

10%

25%

23%

16%

Waterfront homes in Cocoplum had positive movement in all indicators other than foreclosures (one in 2011, compared to 0 in 2010) Number of transactions and average sale price was up over 20% year to year. The highest sold home in 2010 was $3,800,000 compared to $7,500,000 (nearly double) in 2011. Non-waterfront homes in Cocoplum also saw favorable upward trends, with number of solds increasing by 28%.

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

2010

21

$2,507,202

$2,550,000

-

2011

27

$2,603,148

$2,230,000

7%

28%

4%

-12%

Change

% of REO Sales 104 Paloma Drive, Cocoplum Offered at $4,250,000

CORAL GABLES

Snapper Creek Lakes Although sales activity decreased slightly in 2011 compared to 2010, the average sales price and median sales price in Snapper Creek Lakes nearly doubled. At the time of publication there were several pending sales in Snapper Creek Lakes, suggesting 2012 will demonstrate increases in the number of sales.

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

3

2,730,000

2,610,000

-

2011

2

$5,175,000

$5,175,000

-

-33%

90%%

98%

Change

Non-Waterfront Properties

Single Family Homes 10

I TRENDS

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

6

$2,194,750

$1,667,500

-

2011

6

$2,807,708

$1,950,000

-

Change

-

28%

17% O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

CORAL GABLES

Gables Estates

All Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

3

$5,901,000

$4,150,000

33%

2011

3

$5,243,000

$5,150,000

-

-11%

24%

Change

Although sales activity was the same in 2011 as in 2010, the average sales price dropped by 11% this year. Median sales price and sales activity is on the rise in Gables Estates. Just as is cited in other Old Cutler waterfront communities, Gables Estates seemed to rally with several pending sales in December and January.

197 Leucadendra Drive, Gables Estates Offered at $5,390,000

CORAL GABLES

Old Cutler Waterfront Communities

Old Cutler Bay, Hammock Oaks, Journey’s End Sales activity experienced a slight decline in 2011 compared to 2010. Although there were no REO transactions, both average and median sales price declined.

Waterfront Properties

Single Family Homes

601 Reinante Avenue, Old Cutler Bay Pending Sale

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

9

$3,135,000

$3,097,000

-

2011

8

$2,755,000

$2,140,000

-

-11%

-12%

-31%

Change

Ponce Davis, High Pines

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

36

$1,243,000

$1,125,000

3%

2011

39

$1,286,000

$925,000

5%

Change

8%

3%

-18%

O N E S O T H E B Y S R E A L T Y. C O M

Ponce Davis and High Pines experienced an 8% increase in transactions in 2011 compared to 2010. The median sales price declined by 20% as the amount of REO activity increased slightly. The Ponce Davis area still yields some of the highest non-waterfront prices.

7650 Southwest 52 Avenue, Ponce Davis Offered at $2,350,000 TRENDS I

11


IN DEPTH COMMUNITY PROFILES

Coconut Grove

Waterfront Properties

Single Family Homes

Condos

# of Transactions

Average Sales Price

Median Sales Price

2010

7

$5,496,000

$5,500,000

-

2011

7

$4,427,000

$3,440,000

-

-19%

-37%

# of Transactions

Average Sales Price

Median Sales Price

2010

85

$746,054

$602,500

5%

2011

88

$706,765

$552,500

5%

Change

4%

-5%

-8%

Change

% of REO Sales

The amount of Coconut Grove waterfront home and condo sales was relatively the same in 2011 versus 2010, however, average sales price and median sales price declined in both of these sectors. Coconut Grove continues to be a sought after location and the waterfront homes represent a value purchase when compared to other waterfront locations.

% of REO Sales

2627 S Bayshore Drive #2503, Coconut Grove Offered at $1,999,000

Coconut Grove In a very active segment of the market, the number of transactions for Coconut Grove non-waterfront homes increased by almost 30% in 2011 compared to 2010. Values remained mostly the same with a slight increase in average and median sales prices. Sales of non-waterfront condos in the area decreased by 25%. Average and median sales prices continued to decline as REO sales remained a portion of sales activity in this category.

1617 S Bayshore Drive, Coconut Grove Offered at $1,450,000 12

I TRENDS

Non-Waterfront Properties

Single Family Homes

Condos ($500K+)

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

156

$613,357

$506,750

18%

2011

202

$622,320

$510,000

19%

Change

29%

1%

1%

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

24

$761,479

$626,250

-

2011

18

$720,306

$542,500

5%

-25%

-5%

-13%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

Pinecrest

North Pinecrest # of Transactions Single Family Homes

Average Sales Price

Median Sales Price

% of REO Sales

2010

51

$1,473,000

$1,300,000

6%

2011

38

$1,378,000

$1,175,000

3%

-25%

-6%

-10%

Change

It would appear that the buying activity moved south in Pinecrest when North Pinecrest sales activity dropped by 25%, with average and median sales prices continuing to decline in this category. South Pinecrest outperformed North Pinecrest in amount of sales. South Pinecrest sales activity in 2011 increased 13% compared to 2010, however, average and median sales price declined.

South Pinecrest

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

131

$870,407

$650,000

8%

2011

148

$814,055

$630,750

8%

Change

13%

-6%

-3%

11840 Southwest 69 Court, Pinecrest Offered at $1,295,000

Palmetto Bay Palmetto Bay continues to work through REO inventory, which is keeping the prices relatively low. Sales activity increased by 20% in 2011 compared to 2010. Values remained mostly the same with a slight increase in average and median sales prices as REO transactions declined.

Non-Waterfront Properties

16710 Southwest 82 Avenue, Palmetto Bay Offered at $699,000 O N E S O T H E B Y S R E A L T Y. C O M

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

220

2011

264

$394,669

$367,450

21%

$397,345

$385,000

17%

Change

20%

1%

5% TRENDS I

13


Miami, Downtown BRICKELL

14

I TRENDS

DOWNTOWN

KEY BISCAYNE


IN DEPTH COMMUNITY PROFILES

Brickell

Waterfront Properties # of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

624

$410,561

$250,000

21%

2011

709

$441,713

$275,000

17%

Change

14%

8%

10%

2010

Condos

Non-Waterfront Properties # of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

244

$189,268

$165,000

37%

2011

335

$236,779

$215,000

29%

Change

37%

25%

30%

Condos

According to the National Association of Realtors, Miami is the #1 turn around market in the nation. Brickell is the place to be with sales up 20% and average sales prices up 8%. The increase in pricing comes from a reduction in available inventory and in REO properties as investors continue to absorb the remaining distressed properties. In 2011 the total REO sales were down 4% as the market continues to correct. Since we still have a few condominiums that are Fannie Mae approved, professionals continue to lease with an increase of 16% more rentals over the past year. This year we see condo sales continue to exceed new inventory coming to market. As the supply and demand trends continue, the market moves into the Seller’s zone, and we are likely to see continued upward pressure on pricing. That’s what developers are banking on today as three new projects are set to break ground in the Brickell area this year.

495 Brickell Avenue #5409, Miami Offered at $524,900

Downtown Downtown experienced an overall increase in sales of 37% as it continues to work through the distressed inventory. Investors continue to drive the market and what is interesting to see is that rental rates are up 25%, which proves it is a good investment with positive cash flow. With the addition of the improvements at Bicentennial Park with the Miami Art Museum and Miami Science Museum along with the planned Resorts World Miami and the established Adrienne Arsht Center, Downtown is solidifying itself as a world-class destination.

1717 N Bayshore Drive #4254-5, Miami $2,495,000 O N E S O T H E B Y S R E A L T Y. C O M

Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

181

$387,352

$280,000

13%

2011

244

$405,852

$310,000

11%

Change

35%

5%

11%

Non-Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

74

$218,611

$165,000

20%

2011

105

$224,665

$161,000

16%

Change

42%

3%

-2% TRENDS I

15


IN DEPTH COMMUNITY PROFILES

Key Biscayne Still a favorite for extraordinary living, Key Biscayne waterfront single family homes have performed the best in 2011, with a healthy 19% increase in average sales price and a 7% increase in median sales price. A look at prices on a per square foot basis reveals more staggering results, since the average price per square foot is at $1,662 - a 35% increase from 2010.

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

8

$5,774,313

$6,091,250

-

2011

9

$6,895,556

$6,500,000

-

13%

19%

7%

Change

330 Harbor Drive, Key Biscayne Offered at $9,950,000

Key Biscayne Key Biscayne oceanfront stays very steady and continues to be a sure value. While the total number of transactions has increased, the average and median sales prices have shown less than a 5% variation in 2011 compared to 2010, and the average and median sales prices per square foot have increased by 7%. It is interesting to note that the higher end market is performing best: the closing at the highest price per square foot was at $1,527 in 2011 32% higher than the preceding year.

781 Crandon Boulevard PH-1, Key Biscayne Offered at $4,490,000 16

I TRENDS

Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

144

$1,026,916

$697,500

3%

2011

165

$1,076,761

$730,000

4%

Change

15%

5%

5% O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

Key Biscayne

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

58

$1,399,955

$1,143,500

2%

2011

57

$1,556,011

$1,300,000

2%

Change

-2%

11%

14%

The second half of 2011 has seen the last of the “bargains� for non waterfront Key Biscayne Single Family Homes: the trend is back to positive with 11% in average sales price and 13% in median sales price with an average sales price per square foot at $564. Properties on the market at the beginning of 2012 are offered at $100 more per square foot than the 2010 average closing price per square foot, ranging from $1,099,000 to $6,995,000. Inventory during the first two weeks of 2012 represented less than 10 months compared to 2011 transactions: prices will go further up in 2012.

561 S Mashta Drive, Key Biscayne Offered at $3,200,000

Key Biscayne The least healthy of the Key Biscayne products, non waterfront condos continue to be plagued by foreclosures, which represent almost 30% of the total transactions in 2011. This is the only category showing a decrease versus 2010. On the bright side, it is worthwhile to note that more than half of REO sales occurred in a single building. With one bank owned unit on the market at the beginning of 2012 and a shrinking total inventory, 2012 is predicted to be trending upwards.

799 Crandon Boulevard #802, Key Biscayne Offered at $3,850,000 O N E S O T H E B Y S R E A L T Y. C O M

Non-Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

54

$329,074

$309,000

19%

2011

61

$260,603

$215,000

30%

13%

-21%

-30%

Change

TRENDS I

17


Miami Beach SOUTH BEACH MID BEACH NORTH BEACH SOUTH OF FIFTH FISHER ISLAND PALM, STAR, & HIBISCUS ISLANDS SUNSET ISLANDS VENETIAN & LA GORCE ISLANDS NORTH BAY ROAD & PINETREE DRIVE

1 8 I TPointe R E N DPark S South


IN DEPTH COMMUNITY PROFILES

OVERVIEW

Miami Beach

Waterfront Properties

Single Family Homes

Condos

# of Transactions

Average Sales Price

Median Sales Price

2010

72

$2,681,107

$1,625,000

15%

2011

102

$3,218,954

$1,912,503

8%

Change

42%

20%

18%

# of Transactions

Average Sales Price

Median Sales Price

2010

1,604

$492,051

$249,000

21%

2011

2,044

$516,538

$260,000

18%

27%

5%

4%

Change

% of REO Sales

% of REO Sales

2011 proved to be yet another banner year for the Miami Beach waterfront condo market. Weekend and vacation retreats remain in demand with international and domestic buyers. Our inventories continue to evaporate while demand remained constant, having a favorable effect on overall price per square foot. Waterfront homes in Miami Beach were on fire in 2011. The number of transactions was up 42% and both average and median sale prices hovered around 20% increases. Star Island saw a cash sale of $25,500,000 in 2011, one of only four plus $20,000,000 sales in 2011.

1000 S Pointe Drive TH-M4, Miami Beach Offered at $5,250,000

OVERVIEW

Miami Beach Non-waterfront condos continue to be popular and good values. The brunt of both short sale and REO transactions take place in this sector. A 38% increase in the number of transactions demonstrates the highest increase in sales volume in all of the sectors of the Miami Beach condo market. This is an interesting number, as only 1/3 of the number of transactions took place here. Non-waterfront homes in Miami Beach saw positive movement in all indicators other that foreclosures, which remained flat at 12%. Number of transactions increased by 24% while average and median sale price rose as well. The highest sale in 2011 was approximately 25% higher in 2011 than in 2010.

2334 Alton Road, Miami Beach Offered at $2,150,000 O N E S O T H E B Y S R E A L T Y. C O M

Non-Waterfront Properties

Single Family Homes

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

134

$748,433

$575,000

12%

2011

166

$783,807

$650,000

12%

Change

24%

5%

13%

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

723

$164,563

$125,000

32%

2011

1,000

$186,705

$130,000

30%

Change

38%

13%

4% TRENDS I

19


IN DEPTH COMMUNITY PROFILES

MIAMI BEACH

South Beach Owning a waterfront condo on South Beach remains en vogue. Properties priced reasonably sell quickly. The number of options today’s buyer has can be as high as 60% less than those of a year ago - dependent on the building a buyer is considering. Again, we see a shrinking trend in distressed property sales.

Waterfront Properties # of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

716

$680,974

$336,000

16%

2011

861

$784,753

$375,000

13%

Change

20%

15%

12%

Condos

The Residences at W South Beach From $660,000 to $6,500,000

MIAMI BEACH

Mid Beach Mid-Beach is the only section of Miami Beach where the lion’s-share of condos are waterfront. The inventory continues to evaporate. This is the only sector where we have seen a decrease in average sale price and price per square foot, and an increase in the distressed inventory.

Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

420

$481,240

$280,000

12%

2011

568

$395,510

$260,000

16%

Change

35%

-18%

-7%

3737 Collins Avenue S-1402, Miami Beach Offered at $3,499,000

MIAMI BEACH

North Beach Considering this was the most stagnant of all the sectors just two years back - NoBe has come back with a vengeance. The developer inventory at Canyon Ranch continues to sell at a pace quicker than expected, and should dry up in 2012. It is worth noting that the most anticipated hotel opening for 2012 occurred when The St. Regis - Bal Harbour Resort & Residences opened her doors in mid-January, just a few short blocks north of NoBe.

6365 Collins Avenue Ts-11, Miami Beach Offered at $1,049,000 20

I TRENDS

Staged by TUI Lifestyle Waterfront Properties

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

468

$219,412

$137,000

37%

2011

615

$252,817

$170,000

27%

Change

31%

15%

24% O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

MIAMI BEACH

South of Fifth Coveted SoFi has yet again demonstrated its strength in the market. Price per square foot at Apogee is competing with Manhattan real estate values with closed sales nearing $1,800/square foot. Meanwhile, the two Continuum towers are both up approximately $150/square foot from end of year 2010.

Waterfront Properties # of Transactions

Average Sales Price

Median Sales Price

2010

178

$1,318,240

$981,250

8%

2011

242

$1,430,640

$906,250

6%

Change

36%

9%

-8%

Condos

% of REO Sales 400 S Pointe Drive #2408, Miami Beach Offered at $3,899,000

MIAMI BEACH

Fisher Island Fisher Island emerges from 2011 with flying colors. This private enclave features an amenity rich lifestyle for those choosing to reside there. A 50% increase in average sales price sets a high bar for which it will be interesting to watch how 2012 compares!

All Properties

7161 Fisher Island Drive, Fisher Island Offered at $5,500,000 O N E S O T H E B Y S R E A L T Y. C O M

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

35

$1,703,329

$1,800,000

-

2011

44

$2,623,898

$1,999,500

7%

26%

54%

11%

Change

TRENDS I

21


IN DEPTH COMMUNITY PROFILES MIAMI BEACH

Palm, Star & Hibiscus Islands Homes in Palm, Star and Hibiscus Islands showed huge increases on almost every front, from number of transactions to an astounding increase of 73% and 65% respectively in average and median sales price. 2011 had four homes sell for over $10,000,000 compared to one in 2010, a four-fold increase.

142 Palm Avenue, Miami Beach Offered at $8,200,000 or Rent: $35,000/month

Waterfront Properties # of Transactions Single Family Condos Homes

2010

9

2011 Change

12 33%

Average Sales Price

Median Sales Price

% of REO Sales

$4,555,556

$3,250,000

-

• Historical Budweiser bayfront estate on guard gated Palm Island $7,899,584 $5,353,750 • Complete structural updating • Original stained glass windows, floors and moldings intact 73% 65% • Minutes from South Beach, Brickell, downtown, and airport • Elegant 1,200 square foot separat guest house • Award winning rose garden • 150 foot dock • Direct ocean access • Gorgeous views of bay and downtown Miami • Minutes from South Beach, Brickell, downtown, and airport. Offered at $9,875,000

Nora Walz Estate Agent 305.582.0579

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

2

$1,450,000

$1,450,000

-

2011

6

$7,037,500

$5,087,500

-

200%

385%

251%

Change

Sunset Islands

Sunset Islands, while the transaction number was small, had amazing changes. Every single home sold was twice as high or HIGHER in 2011. Average and median sales prices increased 385% and 251% respectively and price per square foot rose over 100%. ®,™ and SM are licensed trademarks to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned And Operated.

Waterfront Properties

Single Family Homes

MIAMI BEACH

2001 Lake Avenue, Miami Beach Offered at $8,650,000

MIAMI BEACH

Venetian, La Gorce Island The Venetian Islands and La Gorce waterfront real estate news was mixed. The number of transactions and median sales price were positive, yet the average sale price was down due in part to a large sale in 2010 that raised the average sales price. Foreclosures also increased three fold from 2010 to 2011.

250 East San Marino Drive, Miami Beach Offered at $3,360,000 or Rent: $19,900/month 22

I TRENDS

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

16

$3,854,813

$2,100,000

6%

2011

22

$3,103,096

$2,325,000

18%

38%

-20%

11%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

MIAMI BEACH

North Bay Road, Pinetree Drive North Bay Road and Pinetree Drive waterfront homes experienced double digit movement in both the average and median sales price over 25%. Average price per square foot saw a modest increase while both 2010 and 2011 had zero foreclosures. The only indicator that saw a negative change was the number of transactions, from 14 in 2010 to 10 in 2011.

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

2010

14

$4,258,429

$3,467,500

-

2011

10

$5,329,431

$4,659,260

-

-29%

25%

34%

Change

% of REO Sales 4549 Pinetree Drive, Miami Beach Offered at $12,500,000

MIAMI BEACH

Indian Creek Indian Creek had one sale in 2010 and none in 2011. At an average price per square foot of $1,179, it is the only single family home category priced at over $1,000 per square foot.

Waterfront Properties

17 Indian Creek Drive, Miami Beach Offered at $32,500,000 or Rent: $89,000/month O N E S O T H E B Y S R E A L T Y. C O M

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

1

$9,300,000

$9,300,000

-

2011

0

$0

$0

-

-100%

-100%

-100%

Change

TRENDS I

23


North of Miami BAL HARBOUR GOLDEN BEACH AVENTURA SUNNY ISLES

24

I TRENDS

BAY HARBOR ISLANDS


IN DEPTH COMMUNITY PROFILES

Bal Harbour Waterfront Properties

Single Family Homes

% of REO Sales

# of Transactions

Average Sales Price

Median Sales Price

2010

1

$2,800,000

$2,800,000

-

2011

-

-

-

-

Change

-

-

-

# of Transactions

Average Sales Price

Median Sales Price

2010

121

$796,712

$459,000

8%

2011

140

$804,829

$467,500

4%

Change

16%

1%

2%

Condos

Bal Harbour waterfront homes had only one sale between 2010 and 2011. Bal Harbour waterfront condos had a modest increase in the number of transactions, yet remained steady in average and median sales prices. The good news is foreclosures decreased by 50%. One Bal Harbour leads this segment of the market with 31 sales in 2011.

% of REO Sales 88 Bal Bay Drive, Bal Harbour Offered at $19,500,000

Bal Harbour As prices come into line with demand, sales of non-waterfront homes in Bal Harbour increased four fold in 2011.

Non-Waterfront Properties

70 Camden Drive, Bal Harbour Offered at $3,950,000 O N E S O T H E B Y S R E A L T Y. C O M

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

2

$2,250,000

$2,250,000

-

2011

9

$1,725,778

$1,250,000

-

350%

-23%

-44%

Change

TRENDS I

25


IN DEPTH COMMUNITY PROFILES

Golden Beach Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

2010

8

$2,406,500

$1,975,000

-

2011

16

$3,311,047

$2,387,000

-

100%

38%

21%

Change

% of REO Sales

Golden Beach waterfront homes had solid gains in all categories other than price per square foot, which showed a slight decline. Number of transactions doubled, and both average and median sales prices were up over 20%. Nnon-waterfront homes stayed mostly flat from 2010 to 2011 in every indicator.

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

2010

6

$756,667

$732,500

33%

2011

6

$755,833

$772,500

-

0%

-0.1%

5%

Change

% of REO Sales

Bay Harbor Islands 2011 was a fantastic year for real estate on Bay Harbor Islands. Every indicator was up substantially including number of transactions and median sales price. Two homes sold for over $2,000,000 compared to none over $1,000,000 in 2010.

Waterfront Properties

9341 E Bay Harbor Drive PH-B, Bay Harbor Islands Offered at $299,000 26

I TRENDS

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

5

$615,600

$630,000

-

2011

11

$1,075,632

$687,455

-

120%

75%

9%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

Aventura Activity continued to be brisk in Aventura with the number of transactions increasing 25% in 2011. Prices held firm and the # of REOs remained essentially the same.

Waterfront Properties

Single Family Condos Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

694

$358,370

$270,000

15%

2011

870

$357,819

$264,000

14%

Change

25%

-0.2%

-2%

Bellini Williams Island, Aventura From $1,000,000 to $4,000,000

Sunny Isles Sunny Isles continued to be a strong segment of the overall Miami market with the number of sales increasing 33%. As the developer inventory dwindles, prices at year end remained essentially unchanged. Several new projects are planned for this area.

Waterfront Properties

18911 Collins Avenue #3001, Sunny Isles Offered at $2,199,000 O N E S O T H E B Y S R E A L T Y. C O M

Condos

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

613

$461,015

$235,000

11%

2011

817

$477,939

$240,000

17%

Change

33%

4%

2% TRENDS I

27


Fort Lauderdale LAS OLAS ISLES HARBOR BEACH LAUDERDALE BY THE SEA LIGHTHOUSE POINT RIO VISTA HILLSBORO BEACH FORT LAUDERDALE BEACH VICTORIA PARK HOLLYWOOD & HALLANDALE BEACH CORAL RIDGE BAY COLONY

512 Seven Isles Drive, Fort Lauderdale 2Offered 8 I T Rat E N$19,900,000 DS


IN DEPTH COMMUNITY PROFILES

OVERVIEW

Fort Lauderdale

Waterfront Properties

Single Family Homes

Condos

# of Transactions

Average Sales Price

Median Sales Price

246

$1,238,343

$799,950

10%

2011

285

$1,274,695

$900,000

11%

Change

16%

3%

13%

# of Transactions

Average Sales Price

Median Sales Price

2010

1,158

$160,468

$125

35%

2011

1,103

$161,774

$128,000

28%

Change

-5%

1%

2%

2010

% of REO Sales

Fort Lauderdale’s waterfront homes saw favorable numbers in 2011, with total number of solds up 16% from 2010 despite increases in both average and median sales prices. The waterfront condo market remained relatively the same this year, with minimal changes across the board.

% of REO Sales 625 Poinciana Drive, Fort Lauderdale Offered at $2,800,000

OVERVIEW

Fort Lauderdale Non-waterfront property in Fort Lauderdale did not fare as well in 2011 as in 2010. Despite a slight decrease in sales prices for $1 Million+ condos, only one sale took place this year. Non-waterfront homes also did not see much change in 2011, with prices staying relatively the same as this sector continues to be plagued by bank owned properties.

Non-Waterfront Properties

Single Family Homes

2410 Southwest 29 Way, Fort Lauderdale Offered at $675,000 O N E S O T H E B Y S R E A L T Y. C O M

Condos (1M+)

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

1,309

$180,207

$110,000

39%

2011

1,309

$190,258

$111,000

35%

0%

6%

1%

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

2

$1,112,500

$1,112,500

-

2011

1

$1,040,000

$1,040,000

-

-50%

-6.5%

-6.5%

Change

Change

TRENDS I

29


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Las Olas Isles

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

52

$1,988,804

$1,475,00

8%

68

$1,963,524

$1,562,814

10%

30%

-1%

6%

2010 2011 Change

Las Olas Isles are located directly off Las Olas Boulevard and include Coral Isles, Idlewyld, Riviera Isles, Navarro Isle, Nurmi Isles, Hendricks Isle, Isle of Venice, Isle of Capri, Coconut Isle, and Las Olas Seven Isles. Most waterfront homes offer dockage. Canal depth varies from 4-12’ around the area. This exclusive community saw an increase in median sale price compared to 2010. Number of transactions increased significantly in both wagterfront and non-waterfront homes, and average sales price has stabilized.

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

4

$801,925

$637,500

-

2011

5

$818,000

$725,000

-

25%

2%

14%

Change

1 Pelican Drive, Fort Lauderdale Offered at $6,700,000

FORT LAUDERDALE

Harbor Beach Harbor Beach continues to be one of the most sought after neighborhoods in Fort Lauderdale. Sales of waterfront homes jumped 19% while prices remained about the same. The foreclosures are no longer a factor.

Waterfront WaterfrontProperties Properties

Single SingleFamily Family Homes Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

16

$2,044,281

$1,412,500

6%

2011

19

$2,025,000

$1,800,000

-

19%

-1%

27%

Change

Non-Waterfront Properties

2536 Lucille Drive, Fort Lauderdale Offered at $5,500,000 30

I TRENDS

Single SingleFamily Family Homes Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

11

$619,336

$585,000

-

2011

10

$761,400

$600,000

-

-9%

23%

3%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Lauderdale by the Sea Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

7

$996,786

$760,000

-

8

$997,862

$812,500

13%

14%

0.1%

7%

2010 2011 Change

Lauderdale-by-the-Sea is a charming seaside oasis on the northeastern edge of Broward county. As the number of transactions increased in both sectors we see a major 93% drop in median sales price for non-waterfront homes. This downward pricing trend can be attributed to a large amount of REO sales in 2011 - 20% of non-waterfront transactions were bank-owned properties.

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

7

$719,714

$775,000

-

2011

15

$420,760

$350,000

20%

114%

-41%

-93%

Change

1460 S Ocean Blvd #1601, Fort Lauderdale Offered at $2,395,000

FORT LAUDERDALE

Lighthouse Point Just minutes away to the Hillsboro inlet, Lighthouse Point is a luxury neighborhood and paradise for boat enthusiasts. Waterfront properties saw a substantial increase in number of sales and slight increase in both average and median sales prices. Non-waterfront properties did not far as well, with a 23% decrease in number of transactions from 2010 to 2011.

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

43

$995,495

$765,000

5%

2011

60

$1,045,678

$837,500

7%

40%

5%

9%

Change

Non-Waterfront Properties

3930 NE 31 Avenue, Fort Lauderdale Offered at $1,299,000 O N E S O T H E B Y S R E A L T Y. C O M

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

60

$323,143

$255,500

9%

2011

46

$296,573

$280,900

13%

-23%

-8%

10%

Change

TRENDS I

31


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Rio Vista

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

11

$1,724,286

$1,475,000

9%

2011

14

$1,424,600

$1,375,750

-

27%

-17%

-7%

Change

An exclusive community close to downtown Fort Lauderdale, Rio Vista boasts no bridge access to the ocean - a boater’s dream come true. Between 2010 and 2011, total number of sales for both waterfront and non-waterfront homes in this neighborhood increased. Waterfront properties saw the biggest drop in average sales price with a 17% decrease.

Non-Waterfront Properties # of Transactions Single Family Homes

Average Sales Price

Median Sales Price

% of REO Sales

2010

21

$578,095

$415,000

-

2011

27

$560,889

$500,000

7%

29%

-3%

20%

Change

1021 Southeast 8 Street, Fort Lauderdale Sold for $1,200,000

FORT LAUDERDALE

Hillsboro Beach This enclave of waterfront homes has seen a slow down in the total number of sales from 2010 to 2011 along with a slight decline in both the average and median sales prices.

SingleFamily Family Single Homes Homes Waterfront Properties

Single SingleFamily Family Homes Homes 32

I TRENDS

# of Transactions

Average Sales Price

Median Sales Price

% of REO

2010

5

$6,430,000

$6,300,000

-

2011

2

$5,950,000

$5,950,000

-

-60%

-7%

-6%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Fort Lauderdale Beach The total number of waterfront homes sold in Fort Lauderdale Beach in 2011 has doubled. A nearly 50% decrease in average sales price for waterfront homes could be attributed to the number of REOs being relatively high at 12.5%, compared to no REO waterfront sales in 2010. Non-waterfront homes in this sector have performed particularly well this year, with the number of transactions up 40% and average sales price up 28%.

Waterfront WaterfrontProperties Properties

Single SingleFamily Family Homes Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

4

$3,187,475

$3,137,450

-

8

$1,711,750

$950,000

12.5%

100%

-46%

-70%

2010 2011 Change

Non-Waterfront Properties

1200 Holiday Drive #603, Fort Lauderdale Offered at $1,750,000

SingleFamily Family Single Homes Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

10

$559,790

$533,450

30%

2011

14

$721,879

$597,500

14%

40%

28%

12%

Change

FORT LAUDERDALE

Victoria Park, Sunrise Key Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

4

$1,507,725

$1,387,950

-

2011

5

$998,000

$1,045,000

20%

25%

-33%

-24%

Change

A cozy residential neighborhood nestled in the heart of downtown Fort Lauderdale, Victoria Park is a vibrant community that retains its Old Florida charm. This area saw a slight decrease in the number of transactions in 2011 despite a lower number of REO sales for the year. Waterfront properties in Sunrise Key have fared particularly well in 2011 with a 25% increase in total number of solds.

Non-Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

58

$396,257

$335,000

17%

2011

50

$385,080

$337,500

8%

-13%

3%

0.7%

Change

O N E S O T H E B Y S R E A L T Y. C O M

431 N Victoria Park Road, Fort Lauderdale Offered at $895,000 TRENDS I

33


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Hollywood Beach, Hallandale Beach

Waterfront Properties

Single Family Homes

Condos

# of Transactions

Average Sales Price

2010

32

$1,072,091

$1,012,500

-

2011

23

$1,215,685

$1,170,000

-

-28%

13%

16%

# of Transactions

Average Sales Price

Median Sales Price

2010

1,202

$240,120

$170,000

-

2011

1,418

$229,898

$162,350

-

Change

18%

-4%

-5%

Change

Median Sales Price

% of REO Sales

A gated community of waterfront homes with oversize docks on deepwater canals and no fixed bridges, Golden Isles in Hallandale is considered a hidden gem among avid boaters. The condo market in this area continues to be very active with an almost 20% increase in the number of sales. Waterfront properties saw a 28% decline in number of transactions this year, most probably because of an increase in both average and median sales prices.

% of REO Sales 207 Holiday Drive, Hallandale Offered at $1,540,000

FORT LAUDERDALE

Hollywood Beach, Hallandale Beach The Hollywood-Hallandale beach market is benefiting from the influx of investors chasing deeply-discounted condo resales. With the increasing number of transactions in this very active condo market, we see a slight decrease in the number of transactions involving bank owned properties, which might be evidence of market improvement. A decrease in available inventory contributed to an overall decrease in sales of non waterfront homes with a marginal increase in pricing.

1800 S Ocean Drive #704, Hallandale Offered at $779,000 34

I TRENDS

Non-Waterfront Properties

Single Family Homes

Condos

2010 2011

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

50

$420,654

$382,500

-

43

$437,730

$415,000

-14%

4%

8%

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

174

$140,154

$108,500

30%

2011

203

$151,595

$127,000

27%

Change

17%

8%

17%

Change

O N E S O T H E B Y S R E A L T Y. C O M


IN DEPTH COMMUNITY PROFILES

FORT LAUDERDALE

Coral Ridge, The Landings Coral Ridge and The Landings fared well in 2011 with the sales of non-waterfront homes increasing 35% as prices of the homes dropped to meet demand. Waterfront homes experienced upward movement in number of transactions as well, despite only a small 5% decrease in average sales price.

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

45

$1,050,176

$749,000

8%

2011

48

$995,753

$775,000

13%

Change

7%

-5%

3%

2010

Non-Waterfront Properties

5431 Northeast 31 Avenue, Fort Lauderdale Offered at $1,595,000

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

26

$718,877

$608,000

-

2011

35

$556,157

$525,000

3%

35%

-23%

-14%

Change

FORT LAUDERDALE

Bay Colony

Waterfront Properties

Single Family Homes

# of Transactions

Average Sales Price

Median Sales Price

% of REO Sales

2010

5

$2,685,500

$3,000,000

-

2011

4

$1,112,500

$1,112,500

-

-20%

-59%

-63%

Change

O N E S O T H E B Y S R E A L T Y. C O M

One of the most exclusive addresses in the area, Bay Colony is one of only two guard gated waterfront communities in Fort Lauderdale. This luxury enclave features wide, deep protected interior canals with no fixed bridges, lush landscaping along its streets, and estate style homes boasting deepwater dockage for avid boaters. Decrease of the total number of homes available for sale affected both average sales and median prices. A mere seven residences in Bay Colony were on the market at time of publication.

230 N Compass Drive, Fort Lauderdale Offered at $2,599,000 TRENDS I

35


Everything about Bellini is the best there is.

Bellini at Williams Island, Aventura From $1,000,000 to $4,000,000

A Martin Z. Margulies Development

NOW UNDER CONSTRUCTION

onesothebysrealty.com

COVER PROPERTY: 34 W Dilido Drive, Miami Beach I offered at $11,900,000 This material is based upon information that we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions, changes, including price, or withdrawal without notice. ŠMMXII Sotheby’s International Realty Affiliates LLC. All Rights Reserved. An Equal Opportunity Company. Equal Housing Opportunity.


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