The Coastal Quarterly | Q2 2017 by CSIR

Q2: April - June 2017

Table of Contents Coastal SIR Q2 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 Second Quarter Report: April - June 2017 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 largest competitors in Palm Beach and Martin Counties.

SIGNIFICANT SALES

11 Via Vizcaya | Palm Beach $12,900,000

103 W Bear’s Club Drive | The Bear’s Club $8,300,000

191 Bear’s Club Drive | The Bear’s Club $7,550,000

7014 SE Harbor Circle | Sailfish Point $6,500,000

12220 Tillinghast Circle | Old Palm Golf Club $6,350,000

11758 Elina Court | Old Palm Golf Club $6,153,000

Market Update

2nd Quarter of 2017

Pending home sales continued to slide nationally. One likely cause of the slide is the shortage of inventory. Buyers are still interested in purchasing homes, but there is not enough supply to satisfy their demand. First time buyers are still getting pushed out of the market as the prices drift out of their reach and options are slim. Investors and repeat buyers are winning the bidding wars as their cash or large down payments are more enticing than offers with financing contingencies. Mortgage rates remain at enticing levels but consumer confidence took a slight dip in the 2nd quarter of 2017. Statewide, Florida saw increases in the number of sales, average sale prices, inventory levels and pending sales. This is great news at it shows that the Florida housing market is still very strong and steady. Median sales prices increased 8% compared to one year ago. This is higher than the 6% increase in the national median sales price. There is currently only a 4 month supply of single family homes and a 6 month supply of townhomes and condos. Because the market is so competitive, buyers are submitting offers with more thorough pre-qualifications so that their offers are not passed up for cash offers. Canadian purchasers are flocking to Florida as the prices of their Canadian homes have gone up significantly in value. This affords them more purchasing power in the United States. The second quarter of 2017 in the Northern Palm Beach County and Martin County markets continued to show signs of improvement from 2016. Riding on the wave of the exciting 1st quarter, the 2nd quarter leaves the 2016 doldrums in the dust. Again, this is still too soon to call it a comeback, but it is a refreshing trend that could continue through the second half of the year. Many of the communities reported large increases in the number of transactions. Even more impressive, however, is that most of the communities reported higher average sales prices and higher average price per square foot numbers. In Palm Beach County, average sales prices of condominiums and homes saw increases of 5% and 3%, respectively, compared to the same quarter last year. Martin County reported 13% increases in condominiums and 5% for homes year over year. The one concerning statistic of the quarter that could give a glimpse of change is that at the end of the 2nd quarter the number of pending sales was down 17% from the same time last year. This is a statistic to keep an eye on as the 3rd quarter begins. 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

Price Range

Q2 2016 vs. Q2 2017 Sale Price Analysis $10M+ $5M-$10M $3M-$5M $1M-$3M $500K-$1M

Q2 2017 Q2 2016 0

500

1000

1500

Number of Closed Homes, Condos, Townhomes

2nd Quarter Sales Price and Inventory Analysis The number of sales increased in most of the price points for Palm Beach and Martin Counties as a whole in the 2nd quarter of 2017 compared to the 2nd quarter of 2016 for single family homes, condos and townhomes. The number of active listings decreased by 2.5% and pending listings decreased by 17% in Northern Palm Beach County.

Active and Pending Inventory in Northern Palm Beach County 2500

Number of Listings

2000

1500

Active Listings 1000

Pending Listings Closed Listings

500

Source: JTHS MLS

5 Source : FLEX MLS

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

Single Family Homes The number of transactions decreased by 2% in Palm Beach County and decreased by 4% in Martin County for single family homes in the second quarter of 2017 compared to the second quarter of 2016. Despite the reduction in the number of transactions, the average sales prices and average price per square foot increased in both counties overall. The change in average sales prices increased in all of the Northern Palm Beach and Martin communities except for Tequesta and Wellington.

Total Sales 1st Quarter 2016 vs. 1st Quarter 2017 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 Q2:2016 4,854 865 11 307 41 393 5 7 60 671 329 122 3

Total # of Sales Q2:2017 4,735 830 17 356 51 389 8 4 55 646 309 102 7

% change -2.45% -4.05% 54.55% 15.96% 24.39% -1.02% 60.00% -42.86% -8.33% -3.73% -6.08% -16.39% 133.33%

Avg. Sales Price Q2:2016 $532,524 $490,464 $650,864 $615,698 $726,498 $543,772 $547,100 $1,695,714 $792,278 $300,040 $842,651 $468,920 $4,333,333

Avg. Sales Price Q2:2017 $549,325 $514,056 $1,063,706 $724,650 $979,407 $623,909 $1,176,125 $2,977,500 $673,517 $343,488 $609,504 $916,601 $7,289,286

% change 3.15% 4.81% 63.43% 17.70% 34.81% 14.74% 114.97% 75.59% -14.99% 14.48% -27.67% 95.47% 68.21%

Avg. Price Per SF Q2:2016 $197.54 $178.45 $302.24 $219.43 $278.36 $223.26 $286.61 $620.94 $274.48 $154.89 $243.36 $188.70 $855.07

Avg. Price Per SF Q2:2017 $209.20 $189.63 $380.97 $238.67 $324.53 $240.01 $410.73 $941.74 $272.31 $172.03 $205.85 $228.75 $833.41

% change 5.90% 6.27% 26.05% 8.77% 16.59% 7.50% 43.31% 51.66% -0.79% 11.07% -15.41% 21.22% -2.53%

Average Sales Price 1st Quarter 2016 vs. 1st Quarter 2017 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

Average Price Per Square Foot 1st Quarter 2016 vs. 1st Quarter 2017 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

Source : FLEX MLS

Single Family Homes Community Spotlight The Bear’s Club Jupiter, FL

The Bear's Club represents the realization of Jack Nicklaus' vision to create a world class golf club in South Florida that not only bears his name, but that also represents his love, passion and respect for the game. Meandering through 401 acres of pristine Florida oak hammocks and pine forests, The Bear's Club features a 35,000 square foot clubhouse and is also home to 74 private estate homes, 14 club cottages and 17 golf villas.

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

Q2:2016 65 81 136 78 77 67 59 106 74 54 75 102 260

Q2:2017 68 78 85 91 65 68 102 104 55 65 87 80 190

% change 4.62% -3.70% -37.50% 16.67% -15.58% 1.49% 72.88% -1.89% -25.68% 20.37% 16.00% -21.57% -26.92%

Key Observations     

Number of transactions increased in most of the Northern Palm Beach County communities. Despite the overall county reporting a slight decrease in the number of transactions. Palm Beach County reported a 3% increase in average sales price and a Martin County reported a 4% increase. Jupiter Inlet Colony saw a large decrease in the number of transactions but huge increases in the average sales prices and average price per square foot. Juno Beach and Singer Island reported very substantial increases in number of transactions, average sales price and average price per square foot. Days on market decreased in about half of the reported markets.

7 Coastal Sotheby’s International Realty

Condominiums & Townhomes The number of transactions decreased by 2% in Palm Beach County and increased by 5% in Martin County for condos and townhomes in the second quarter of 2017 compared to the second quarter of 2016. Palm Beach County saw an increase of 5% in the average sales prices while Martin County increased by nearly 13% compared to the same quarter of 2016. During the 2nd quarter, days on market decreased in about half of the communities.

Total # of Sales Q2:2016 4,677 461

Total # of Sales Q2:2017 4,586 482

% change -1.95% 4.56% -18.99% 4.13% -10.11% 4.42% 13.51%

79 242 89 294 37 0 52 781 69 36 14

64 252 80 307 42 0 64 755 80 54 12

Avg. Sales Price Q2:2016 $235,234 $177,088 $578,026 $243,378 $218,395 $331,045 $463,906 $0 $268,080 $149,811 $288,603 $206,810 $1,058,562

Avg. Sales Price Q2:2017 $247,765 $200,098 $609,431 $262,688 $319,850 $319,380 $473,442 $0 $257,145 $149,536 $268,744 $212,641 $814,633

% change 5.33% 12.99% 5.43% 7.93% 46.45% -3.52% 2.06%

Avg. Price Per SF Q2:2016 $154.17 $126.08 $301.09 $160.97 $165.03 $211.10 $279.44 $0.00 $170.83 $114.48 $172.59 $134.42 $447.66

Avg. Price Per SF Q2:2017 $164.61 $136.84 $334.44 $169.02 $196.80 $208.01 $300.27 $0.00 $183.65 $123.18 $169.25 $140.47 $434.44

% change 6.77% 8.53% 11.08% 5.00% 19.25% -1.46% 7.45%

23.08% -3.33% 15.94% 50.00% -14.29%

-4.08% -0.18% -6.88% 2.82% -23.04%

Average Price Per Square Foot 1st Quarter 2016 vs. 1st Quarter 2017 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

7.50% 7.60% -1.94% 4.50% -2.95% Source : FLEX MLS

Condominiums & Townhomes Community Spotlight Bay Colony Juno Beach, FL

Live the private waterfront lifestyle you've always dreamed in the unspoiled beauty of Juno Beach. The 14 acres of lush, landscaped gardens and Intracoastal views can be enjoyed throughout the entire property, with the ocean just steps from your door. Bay Colony offers first-class amenities including a state-of-the-art fitness center, social room, tennis courts, resort style pool and spa.

Q2:2016 67 72 131 49 82 64 93 0 64 66 72 80 143

Q2:2017 73 67 121 61 93 61 72 0 76 69 90 48 133

% change 8.96% -6.94% -7.63% 24.49% 13.41% -4.69% -22.58% 18.75% 4.55% 25.00% -40.00% -6.99%

Key Observations      

The number of transactions increased (4%-50%) in all of the communities reported except Singer Island, North Palm Beach and Jupiter Island. Average sales prices and price per square foot increased in most of the communities in the Northern Palm Beach markets. Singer Island condos reported the largest decrease (19%) in number of transactions. The average sales prices and average price per square foot, however, increased 5% and 11%, respectively. Hobe Sound condos reported the largest increases in the number of transactions. Despite a 10% decrease in the number of sales, North Palm Beach saw an 11% increase in average price per square foot. Days on market decreased in about half of the markets. 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

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