Aqualane Shores SFH Annual Report 2015

AQUA L A NE SHOR ES

Single Family Homes annual report 2015

L I V E E XC E P T I O N A L LY ™

1 | AQUALANE SHORES

AQUALANE SHORES SINGLE FAMILY ANNUAL REPORT

2015

Presented by:

The Team at Gulf Coast International Properties Michael A. McCumber, P.A. and Timothy P. Savage, P.A., Principals

Gulf Coast International Properties presents its annual Aqualane Shores Report for 2015. This sought after report continues to be preferred not only by our discerning clientele, but for industry experts as well. World class integrated marketing efforts coupled with exceptional results has earned us the reputation as Naples premier boutique real estate firm. As the proven Aqualane Shores market leader, Gulf Coast International Properties associates strive to exceed our client’s expectations through uncompromising integrity and concierge service. Our award winning locally owned and operated multi-generational firm exemplifies the Naples reputation for luxury living. Specializing in exclusive one of kind estates, Gulf Coast International Properties invites you to experience the difference to Live Exceptionally™.

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 2

AquAlAne ShoreS - By

the

numBerS - yeSterdAy

And

todAy

$308 Million Total MLS Closed Sales in Aqualane Shores from 2006-2010 $448 Million Total MLS Closed Sales in Aqualane Shores from 2011-2015 45%

Increase in Total Sales for a 5 Year Period between 2006-2010 to 2011-2015

$54 Million

Total MLS Closed Sales in Aqualane Shores in 2010

$119 Million Total MLS Closed Sales in Aqualane Shores in 2015 120%

5 Year Increase in MLS Closed Sales in Aqualane Shores from 2010 to 2015

23

Total MLS Closed Sales in Aqualane Shores in 2010

28

Total MLS Closed Sales In Aqualane Shores in 2015

22%

5 Year Increase in Total MLS Closed Sales in Aqualane Shores from 2010 to 2015

339

Average Days on Market for Sold Aqualane Shores Properties in 2010

122

Average Days on Market for Sold Aqualane Shores Properties in 2015

(64%)

Decrease in Days on Market for Sold Aqualane Shores Properties from 2010 to 2015

$2.36 Million Average Closed Sale Price for an Aqualane Shores Property in 2010 $4.25 Million Average Closed Sale Price for an Aqualane Shores Property in 2015 80%

Increase in Average Closed Sale Price for Property in Aqualane Shores from 2010 to 2015

For more information please visit: www.gcipnaples.com

3 | AQUALANE SHORES

MLS Total Closed Sales

18

%

2015 $119m 2014 $101m

MLS Average Closed Sale Price

15

%

2015 $4.3m 2014 $3.75m

Average New Home Sale Price

27

%

2015 $6.1m 2014 $4.8m

*All MLS Sales that included a home sq. footage

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 4

Inventory: End of 2015

31

Homes & Lots for Sale

1 year

Approx. Supply of Properties for Sale

Days on Market For Sale

-15

%

2015 122 2014 143

The Bay!

$10,000,000

Record Sales Price for a Non-Beachfront Home in Aqualane Shores (our firm represented seller)

For more information please visit: www.gcipnaples.com

5 | AQUALANE SHORES

$110,000,000

$5,000,000

$82,500,000

$3,750,000

$55,000,000

$2,500,000

$27,500,000

$1,250,000

$0

Average Closed Sale Price

Total Sales

2006-2015 Aqualane Shores Total Sales and Average Sale Price

$0

2006

2007

2008

2009

Total Sales

2010 YEAR

2011

2012

2013

2014

2015

Average Sale Price

Source: Southwest Florida MLS

As predicted by last year’s Aqualane Shores market report, 2015 met and surpassed many of the impressive numbers realized in 2014. Both average sale price of $4.25m and $119m in total sales were the highest of all time for this waterfront community and comfortably above prior year. The time on market figure of 122 days or about 4 months for time to sell was also a record. At the same time, both total number of sales (28) and current inventory (about 12 months) fall into historical norms, suggesting the market is not necessarily ‘over-heated’ or entering ‘bubble’ territory. If we were to see the conditions of 2005-2007 exuberance, both supply (less than 6 months is unhealthy according to the National Association of Realtors) and ‘flipping’ (selling the same home more than once a year) would exist. Gulf Coast International Properties is not seeing those conditions statistically speaking. Price per sq. ft. for new or livable homes was about $950/ ft. is 2015, which was $90 or about 10% higher than 2014 and also a market record. However, its important to note this included a sensational bayfront estate and several new home sales, all of which were well about the $1000 threshold and raised the average price per sq. ft.

Taking a big picture perspective, financing (still at historically low rates), equity market uncertainty (investors moving cash into hard assets) and the lifestyle Aqualane Shores provides combine to make 2016 another potentially strong and record-breaking year. We will now break down the Aqualane Shores real estate market into segments, taking a look at how new home, lot/ land and re-sales performed. *Gulf Coast International Properties represented the seller for both of these record closings

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 6

2014 vs. 2015 Performance by Property Type Homes Re-Sales

New Construction Sales

Land/Tear Down Sales

2014

2015

% Change

2014

2015

% Change

2014

2015

% Change

# Sales

12

10

-17%

7

3

-57%

7

12

71%

$ Sales ($MM)

$51.5m

$57.4m

11%

$33.4m

$16.3m

-51%

$16.4m

$35.5m

116%

Avg. Sale Price

$4.3m

$5.7m

33%

$4.8m

$5.4m

13%

$2.3m

$3m

23%

Source: Southwest Florida MLS

AquAlAne ShoreS - 2015

vS.

2014

Home Re-Sales - Defined as any livable but non-new home, total re-sales dropped in 2015 to 10 sales from 12 sales in 2014, yet the average sale price of $5.7m was an impressive 33% higher than the prior year. This figure was hugely impacted by two specific sales, one on Naples Bay for $10m and one on 5th St S for $8m (both GCIP sales), both sales records. Traditionally, both the lack of supply and price premium explain the buyer preference for re-sale. However, in these cases, both buyers chose to pay a new-home like premium for re-sales because of the combination of location, views, and quality of home built.

New Construction Sales - While media reports suggest otherwise, the number of new homes sold in Aqualane Shores have been sluggish over the last few years. The low number of sales, with only 3 in 2015, can in part be explained by the 18 month sales cycle, barriers to entry from high investment requirement and lack of quality lot supply to developers. However, the average of $5.4m and over $1000 price per sq. ft. set new records, both of which we believe in 2016 will be broken as the market continues to climb and prices for lots push buyers into buying something already built. Plus, the quality of the homes being constructed and sold continues to rise.

Land Sales - No other area of the luxury residential real estate market in Naples has appreciated more than lots and tear downs in the last several years. As overall market demand has returned in the last 3 to 4 years, both end users and developers have been aggressive in buying land. For Aqualane Shores specifically, just in two years from 2013 to 2015 the average sale price has increased from $1.9m to $3m, or 53%. A lot/ tear down on the ‘teen’ streets that sold for $1.4m-$1.5m range now sells for $2.4m range.

Lots/ tear downs on the fingers streets that sold for $2.2-$2.3m are now around that $3m-$3.2m range.

There was also a bayfront lot sale for $4.35m that was the highest single lot sale of all time in Aqualane.

GCIP represented the Buyer in the transaction. We anticipate both the number and average sale price to only rise slightly as lack of inventory and prices slow momentum.

2016 Unquestionably one of Florida’s finest luxury waterfront communities with quick access to 3rd. St. S. and the Gulf of Mexico, Aqualane Shores will always find appeal regardless of the current market conditions. Given that background, Gulf Coast International Properties believes that we will see numerous sales records be eclipsed in 2016. Between favorable macro level factors (financing rates, real estate as investment, lifestyle) and current momentum built over the last few years, it would not be surprising to see total sales $, average sale price and new home sales exceed any previous year. We do also believe however that prices can and must level across categories (lots, re-sales, new homes) as the market simply can’t sustain the impressive year over year increases. As the leader in Aqualane Shores sales, we still encourage buyers to contact us despite these statistics, because there are still opportunities. Finally, keep in mind that real estate is one of the only investments that appreciate while simultaneously enjoyed by its owner. This is especially true for Aqualane Shores, where its’ residents get to enjoy an ideal location minutes to Naples Bay, and walk to the historic 3rd. St. S. shopping/dining district as well as the sugar sand beaches of the Gulf of Mexico.

For more information please visit: www.gcipnaples.com

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All information herein is subject to change and no representation is made to its accuracy. © 2015 by Gulf Coast International Properties An equal opportunity company. Equal housing opportunity. This is not intended to solicit already listed homes.