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2012 High End Residential Single Family Market Miami

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2012 Single Family Report

Contents

Overview.................................................................................................................................................4 Units Sold By Price in 2011 and 2012......................................................................................................6 Units Sold by City in 2011 and 2012........................................................................................................7 Quarterly Average Selling Price per Square Foot....................................................................................8 Number of Units Sold per Quarter..........................................................................................................8 Units Sold by Living Area.........................................................................................................................9 Comparison of Units Sold by Living Area...............................................................................................11 Units Sold by Lot Size............................................................................................................................12

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2012 Single Family Report

Welcome to the 2012 Nexus International Realty Annual Report for Miami’s High-End Residential Single Family Market. Using market-segment data of transactions with closing prices in excess of $1 million in 2012, this report compares those sales to transactions in 2011. The primary source of data is the Southeast Florida MLS (Multiple Listing System). Available transactions were compared and reviewed to improve statistical data accuracy, and those listings that had missing data fields were amended when county tax record listings were available. A small number of listings were removed from the original sample when deemed unverifiable or misclassified. 2012 saw continued growth in Miami’s high-end residential real estate. All quarters of 2012 had increased sales compared to the same periods of 2011. The full year figures show an overall volume increase of 22% for the year. The average closing price of properties sold during 2012 also increased, in addition to the number of sales. In 2012, the average price for a high-end single-family residence was $2,690,550, which represents an increase of 15% over 2011. The average price per square foot also increased by 9%, from $454 to $498, and the median price increased by 8%, from $371 to $397. The average active market time in 2012 was reduced to 197 days, compared to an average of 229 days in 2011. Sellers received 87% of the final asking prices, a slight decrease from the 88% they received on average last year. With respect to the distressed portion of the market, only 5% of all high-end transactions were either REOs or Short Sales, compared to 9% of transactions last year, which constitutes a significant improvement. Miami’s real estate market has shown one of the strongest recoveries thanks to its magnificent location and weather, which attract foreign buyers and investors. We expect 2013 to be a stronger year than 2012 and to continue the trend that started in 2011 as the economy recovers from the recession that affected the market from 2008 to 2010. We welcome you to download and share this report from our website at: www. nexusinternationalrealty.com

Jose C. Perla, MSF, MIB President Nexus International Realty

©2012 by Nexus Capital Partners LLC DBA Nexus International Realty. All Rights Reserved. Nexus Capital Partners LLC is a licensed real estate broker in the State of Florida. All material presented in this report is intended for informational purposes only and it has been sourced from reported transactions to the local SEF MLS. While information is believed to be correct, it is presented to subject errors, omissions, changes or withdrawals without notice and no guaranty is made of accuracy.

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2012 Single Family Report Overview Data

Inland

Waterfront

All

Average Sales Price

$1,634,144

$4,193,439

$2,690,550

Median Sales Price

$1,400,000

$2,690,000

$1,653,175

Average Sales Price per Sq. Ft

$381

$664

$498

Median Sales Price per Sq. Ft

$332

$535

$397

Number of Sales

377

265

642

Average Days on Market

170

237

197

89%

87%

87%

Sales Price as Percentage of Listing Price

Table 1: Aggregate Data

In 2012, the average price per square foot increased by 9%, from $454 to $498. The median price per square foot increased by 8%, from $371to $397. These gains show that the Miami high-end residential real estate market is experiencing strong and steady growth.

Figure 1: Average Price per Square Foot and Number of Sales per Quarter

Looking at the quarterly numbers, the first and third quarters of the year contained the fewest closed transactions. The second quarter was seasonally high, but the fourth quarter was unusually active, becoming the most active quarter in sales volume in 2012. The uncertainty surrounding the “Fiscal Cliff� negotiations may have influenced the selling of assets and the realizations of capital gains ahead of the increase in taxes on capital gains and healthcare reform-related taxes. 4 www.nexusinternationalrealty.com


2012 Single Family Report

Figure 2: 2012 Number of Units Sold per Month

Reviewing 2012 by month, January, February, and September saw the fewest closings, with May, August, and December providing the highest number of transactions.

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2012 Single Family Report Units Sold By Price in 2011 and 2012

Figure 3: 2011 Units Sold by Price

Figure 4: 2012 Units Sold by Price

The highest number of property sales in 2012 was in the range of $1,000,000 to $2,500,000, decreasing by 5% from last year but increasing by 3% in the next bracket, $2,500,001 to $5,000,000. The final range increased by 1% from last year. The highest-priced property was sold in the Village of Indian Creek: the 2012 transaction closed for $47,000,000, a significant increase over the 2011 record of $25,500,000, and almost triple the 2010 record of $16,000,000. 6 www.nexusinternationalrealty.com


2012 Single Family Report Units Sold by City in 2011 and 2012

Figure 5: 2011 Units Sold by City

Figure 6: 2012 Units Sold by City

High-end residential real estate in the Miami area is dominated by six cities, which comprise 80% of the market activity. Coral Gables, Miami Beach, and Key Biscayne, the three cities with the most waterfront properties, saw their market share increase by 1% from 2011. The City of Pinecrest, where most properties are inland, saw its market share decrease by 1 % from last year.

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2012 Single Family Report Quarterly Average Selling Price per Square Foot

Figure 7: 2011 and 2012 Comparison of Quarterly Average Selling Price per Square Foot

The average selling price per square foot continued to show growth throughout 2012, except for during the third quarter, where it decreased by just 1%.

Number of Units Sold per Quarter

Figure 8: 2011 and 2012 Comparison of Number of Units Sold by Quarter

All quarters of the year showed a positive growth compared to the same periods of 2011. The last quarter, which had the most closed transactions, showed a significant increase of 76% from last year. 8 www.nexusinternationalrealty.com


2012 Single Family Report Units Sold by Living Area

Figure 9: 2011 Units Sold by Living Area

Figure 10: 2012 Units Sold by Living Area

For 2012, the high-end residential market in the Miami area favors properties in the 3001 to 4000 square-foot range, with a slight difference of 4% in the 4001 to 5000 square-foot range. Transactions in this range accounted for 24% of all sales in 2012, and 25% of 2011 sales were properties with square footage between 4001 and 5000.

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2012 Single Family Report Comparison of Units Sold by Living Area

Figure 11: 2011 and 2012 Comparison of Number of Units Sold by Living Area

Properties with a living area between 3,001 and 4,000 square feet became more popular during 2012. The largest property sold during 2012 has 30,000 square feet and was sold for $47 million.

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2012 Single Family Report Units Sold by Lot Size

Figure 12: 2011 and 2012 Comparison of Number of Units Sold by Lot Size

As in previous years, medium-sized lots between ¼ and ½ acre accounted for most closed transactions in 2012, and every segment saw an increase in sales over 2011. The largest increase of 44% was in the 0 to ¼ acre group. Lots ¼ to ½ acre in size increased by 8%, whereas the ½ to ¾ acre properties had the smallest increase at only 5% over 2011. Large lots, over an acre in size, saw a gain of 18% over last year’s transactions. The property with the largest lot sold during 2012 is located in Coral Gables. The property has a 5-acre lot and sold for $8 million in February.

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20012 Miami High End Real Estate Market Report