Q4: October - December 2016
Table of Contents Coastal SIR Q4 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 - December 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
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Market Update
4th Quarter of 2016
Nationally, the 4th quarter of 2016 showed signs of softening compared to the 4th quarter of 2015. Despite the soft 4th quarter, the market for the year still performed better overall than in 2015. In the 4th quarter though, the number of home sales declined slightly and the inventory of homes also decreased to levels that the Nation has not seen since the late 1990s. Because of the short supply, prices increased 4% year over year and increased faster than incomes. This often leads to less affordable housing. Interest rates rose slightly, however most of the activity in the 4th quarter resulted from deals made prior to the increase. Rental rates accelerated because of the tight inventory and less affordable housing. With the new Administration, Dodd-Frank and other regulations will likely be refined which could certainly create more loan products for first time home buyers and spur a positive increase in the number of home sales. 2017 will surely be one to watch as many regulations and changes are made. The South Florida housing market also shows signs of cooling. The Miami condominium market is oversaturated as price cuts are plentiful and listing inventory continues climbing. The Northern Palm Beach County and Martin County markets showed the same signs of cooling. Unlike nationally, the inventory levels increased 10% compared to the same time last year and the number of pending listings decreased 12% compared to the same time one year ago. Despite this softening, prices remained strong and continued to increase in many of the Northern Palm Beach communities but for the first time in years, there are a few that have started to show decreases in prices. An overpricing epidemic is still going on in many of the luxury markets where sellers are pricing homes way ahead of the market. This happens when homes are priced in relation to “Unsold” or “Active” properties instead of actual sales. In these situations, it is often easy to sell a property priced slightly above the real market value if listed at a price close to what the comparable sales indicate. There are so many buyers waiting on the side lines for home prices to adjust that when a properly priced one comes on the market, they pounce. 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.
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4th Quarter Sales Price and Inventory Analysis The number of sales decreased in all price points (except $3M-$5M) for Palm Beach and Martin Counties as a whole in the 4th quarter of 2016 compared to the 4th quarter of 2015 for homes, condos and townhomes. The number of active listings increased by 10% and pending listings decreased by 11% in Northern Palm Beach County.
3000
Active and Pending Inventory in Northern Palm Beach County
Number of Listings
2500
2000 1500 1000
Active Listings Pending Listings Closed Listings
500 0
Source: JTHS MLS 5
Source : FLEX MLS
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Single Family Homes The number of transactions decreased by 8% in Palm Beach County and decreased by 9% in Martin County for single family homes in the fourth quarter of 2016 compared to the fourth quarter of 2015. The change in average sales prices and price per square foot varied throughout the communities; however, Juno Beach and Tequesta 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 4th Quarter 2015 vs. 4th 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 Q4:2015 3,914 629 6 250 44 279 4 2 38 588 264 79 3
Total # of Sales Q4:2016 3,582 567 10 265 41 259 7 1 46 543 234 76 2
% change -8.48% -9.86% 66.67% 6.00% -6.82% -7.17% 75.00% -50.00% 21.05% -7.65% -11.36% -3.80% -33.33%
Avg. Sales Price Q4:2015 $461,549 $463,095 $721,417 $586,582 $1,112,402 $549,647 $485,026 $767,500 $534,822 $274,999 $672,207 $702,750 $7,300,000
Avg. Sales Price Q4:2016 $442,499 $472,332 $739,700 $632,868 $633,582 $612,017 $828,571 $950,000 $575,128 $294,351 $516,698 $577,264 $5,875,000
% change -4.13% 1.99% 2.53% 7.89% -43.04% 11.35% 70.83% 23.78% 7.54% 7.04% -23.13% -17.86% -19.52%
Avg. Price Per SF Q4:2015 $180.00 $173.00 $397.00 $207.00 $366.00 $219.00 $254.00 $408.00 $214.00 $139.00 $197.00 $203.00 $840.00
Avg. Price Per SF Q4:2016 $187.00 $185.00 $324.00 $220.00 $241.00 $243.00 $306.00 $440.00 $246.00 $158.00 $185.00 $207.00 $988.00
% change 3.89% 6.94% -18.39% 6.28% -34.15% 10.96% 20.47% 7.84% 14.95% 13.67% -6.09% 1.97% 17.62%
Average Sales Price 4th Quarter 2015 vs. 4th 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
Average Price Per Square Foot 4th Quarter 2015 vs. 4th 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 Sotheby’s International Realty Jupiter Island Coastal Sotheby’s International Realty
Source : FLEX MLS
Single Family Homes Community Spotlight Sewall’s Point Stuart, FL
Sewall’s Point is known for its natural beauty, shaded by ancient oaks and surrounded on three sides by the St. Lucie River and the Indian River Lagoon. In town, you will find excellent shopping, professional offices and outstanding dining, in addition to the beautiful parks, easy access to offshore fishing and many cultural activities close by. Take the short ride to the St. Lucie Inlet for some of the best fishing in the world, in the bright blue Atlantic Ocean - this is a boater and fisherman’s dream area.
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
Q4:2015 63 73 64 74 71 60 130 151 75 61 75 90 539
Q4:2016 64 75 87 71 86 71 134 19 51 56 64 64 129
% change 1.59% 2.74% 35.94% -4.05% 21.13% 18.33% 3.08% -87.42% -32.00% -8.20% -14.67% -28.89% -76.07%
Key Observations
Number of transactions decreased in about half of the Northern Palm Beach County and Martin County markets. Palm Beach County reported a 4% decrease in average sales price. This is the first time in several years that the average decreased. This coupled with the increase in average price per square foot suggests that the properties that sold were a lower price point than in past quarters. North Palm Beach saw major decreases in the number of transactions, average sales price and average price per square foot. Juno Beach reported increases in number of transactions, average sales price and average price per square foot. Jupiter Island saw a 33% decrease in the number of sales, a 19% decrease in the average sales price - but also showed a 17% increase in average price per square foot. 7 Days on market decreased in about half of the reported markets. Coastal Sotheby’s International Realty
Condominiums & Townhomes The number of transactions decreased by 13% in Palm Beach County and decreased by 18% in Martin County for condos and townhomes in the fourth quarter of 2016 compared to the fourth quarter of 2015. Palm Beach County saw an increase of 8% in the average sales prices while Martin County’s remained flat from the same quarter of 2015. During the 4th quarter, days on market decreased in about half of the communities.
Total Sales 4th Quarter 2015 vs. 4th 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 Q4:2015 3,869 336
Total # of Sales Q4:2016 3,341 274
63 211 59 232 28
46 182 55 204 22
% change -13.65% -18.45% -26.98% -13.74% -6.78% -12.07% -21.43%
33 754 104 31 3
31 602 94 22 5
-6.06% -20.16% -9.62% -29.03% 66.67%
Avg. Sales Price Q4:2015 $203,045 $169,646 $653,049 $230,309 $252,148 $270,673 $612,201
Avg. Sales Price Q4:2016 $219,470 $169,594 $437,578 $250,762 $315,018 $308,755 $465,588
% change 8.09% -0.03% -32.99% 8.88% 24.93% 14.07% -23.95%
$157,900 $127,854 $232,227 $180,442 $538,333
$278,953 $142,924 $245,877 $165,409 $660,000
76.66% 11.79% 5.88% -8.33% 22.60%
Avg. Price Per SF Q4:2015 $163.00 $118.00 $307.00 $150.00 $176.00 $183.00 $326.00
Avg. Price Per SF Q4:2016 $148.00 $122.00 $290.00 $168.00 $189.00 $205.00 $270.00
% change -9.20% 3.39% -5.54% 12.00% 7.39% 12.02% -17.18%
$125.00 $102.00 $145.00 $127.00 $354.00
$189.00 $117.00 $158.00 $119.00 $390.00
51.20% 14.71% 8.97% -6.30% 10.17%
Average Sales Price 4th Quarter 2015 vs. 4th 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
Average Price Per Square Foot 4th Quarter 2015 vs. 4th 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 Sotheby’s International Realty
Source : FLEX MLS
Condominiums & Townhomes Community Spotlight Mariner Bay Hutchinson Island, FL
Mariner Bay is located in the beautiful area of Hutchinson Island. Providing local residence a tropical paradise lifestyle. The scenic waterfront views in the Treasure Coast, you’ll have outdoor activities, beautiful beaches, top notch shopping and an entertaining nightlife at your fingertips. A gated community across the street from the ocean and has a view of Jaycee Park. Community amenities include a pool, workout room, clubhouse and dock. You are walking distance to public tennis courts, basketball courts, river beach and playground.
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
Q4:2015 68 66 147 62 57 55 92
Q4:2016 67 48 115 60 90 60 115
% change -1.47% -27.27% -21.77% -3.23% 57.89% 9.09% 25.00%
64 69 71 38 138
61 64 98 33 250
-4.69% -7.25% 38.03% -13.16% 81.16%
Key Observations
The number of transactions decreased (6%-29%) in all of the communities reported except Jupiter Island which saw a 66% increase. Average sales prices and price per square foot increased in most of the Northern Palm Beach markets. However the entire county of Palm Beach reported a 9% decrease in average price per square foot. Juno Beach and Hobe Sound condos reported decreases in number of transactions, average sales price and average price per square foot. Jupiter Island condos reported increases in number of transactions, average sales price and average price per square foot. Despite a 6% decrease in the number of sales, North Palm Beach saw a 24% increase in average sales prices. 9 Days on market decreased in about half of the markets
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