The Pohrer Report - Q4 2022

THE POHRER REPORT Q4 2022

Inside South Florida’s most exclusive real estate market.

Photographed home: 200 W Coconut Palm Road. Listed by Gary Pohrer of Douglas Elliman Palm Beach.

Featured Property 200 W Coconut Palm Road Royal Palm Yacht and Country Club, 25-Room estate on approx. one acre, with approx. 300ft water frontage.

CONTENTS 3 4 12 16 20 24 31

Let te r f ro m Gar y Po hrer Si n g l e Family Ho mes: A ll Neighborhoods Si n g l e Family Ho mes: No r th End Si n g l e Family Ho mes: In-Town Si n g l e Family Ho mes: Estate Se ction C on d os & Townho mes: A ll Neighborhoods In C l os i n g

GARY POHRER | GARYPOHRER.COM | 2

Letter From Gary It’s crazy to believe that this is our sixth edition of The Pohrer Report. Thank you for taking the time to read our report each quarter and for sharing the thoughtful feedback which helps us make it better each time.

Our Q4 2022 report is more dense than usual, as we have added in-depth, year-end summaries of annual KPIs across both the single family home and condo and townhome asset classes. I found it very interesting to zoom out from the quarterly performance to capture a high level view on how the Palm Beach market performed compared to other years over the last decade. The biggest take away for me was that YES, transactions and activity has slowed down in comparison to 2020 and 2021 BUT, when you compare the core KPIs to pre2020 activities, it appears that 2022 was on par with (and in some cases stronger than) some of the typical years we’ve had in Palm Beach real estate.

As we close out the year, I would like to take a moment to express my gratitude for clients, prospective clients, and the incredible professionals I get to work with. I feel so fortunate to be a leader in this business, collaborating with outstanding colleagues and advising some of the most interesting and influential people with their Palm Beach real estate needs.

I hope you enjoy the read and as always, please don’t hesitate to reach out with any questions or if I can be of assistance to you in 2023 and beyond.

Best regards,

Gary Pohrer Executive Director of Luxury Sales Douglas Elliman 340 Royal Poinciana Way M302 Palm Beach, FL 33480 O: 561.655.8600 M: 561.262.0856 gary.pohrer@elliman.com garypohrer.com

$1B+

#1

In Sales Since 2020*

Douglas Elliman Palm Beach Realtor for Sales Volume From 2017-2021**

#15

18

Ranked Nationwide 2022 REALTrends + Tom Ferry The Thousand***

Years Selling Real Estate in Florida

REPORT CONTRIBUTORS

Tammy Bernstein

Sales Associate

Beth Johnson

Elizabeth Tristan

Sales Associate Sales Associate Market Insights Advisor

*PER DOUGLAS ELLIMAN INTERNAL RECORDS. **AS RECOGNIZED BY THE DOUGLAS ELLIMAN ELLIE AWARDS FROM 2017-2021. *** RANKED IN 2022 INDIVIDUAL BY SALES VOLUME 2022 REALTRENDS + TOM FERRY THE THOUSAND.

GARY POHRER | GARYPOHRER.COM | 3

SINGLE FAMILY HOMES ALL NEIGHBORHOODS

Q4 Summary: Single Family Homes: All Neighborhoods Transaction volume was down -67% year-over-year (YOY)* in Q4, largely driven by decline across both waterfront and non-waterfront properties.

Total sales value* was down -56% YOY, driven by a -50% decrease in non-waterfront sales and a -66% decrease in waterfront sales value.

Price per square foot (PPSF)* across home size* (PPSF: Home Size) continued to grow YOY, and was up +34%.

Price per square foot lot size (PPSF: Lot Size) was up similarly, growing YOY at a rate of +35%.

% CHANGE

Q4 2022

Q4 2021

TRANSACTIONS

13

39

-67%

WATERFRONT

1

7

-86%

NON-WATERFRONT

12

32

-63%

TOTAL SALES VALUE

$245,976,256

$553,184,409

-56%

WATERFRONT

$66,000,000

$194,608,000

-66%

NON-WATERFRONT

$179,976,256

$358,576,409

-50%

AVERAGE SALES PRICE

$18,921,250

$14,184,216

33%

$66,000,000

$27,801,143

137%

$14,998,021

$11,205,513

34%

AVERAGE PPSF: HOME SIZE

$4,335

$3,224

34%

WATERFRONT

$7,752

$5,212

49%

NON-WATERFRONT

$3,731

$2,671

40%

AVERAGE PPSF: LOT SIZE

$1,195

$885

35%

WATERFRONT

$2,407

$1,116

116%

NON-WATERFRONT

$1,008

$796

27%

WATERFRONT NON-WATERFRONT

YEAR OVER YEAR

FOOTER: Glossary Year-over-year (YOY): A method of evaluating two or more measured events, comparing the results of one period with those of a comparable period on an annualized basis.

Total sales value: The sum of all sales during a period of time.

Price per square foot (PPSF): A calculation of the value of each square foot of area of a house, condo or any building. It is calculated by dividing the price by the square footage.

PPSF: Home Size: Home size is based on the current under air square footage.

PPSF: Lot Size: This is based on the PPSF of the total lot.

GARY POHRER | GARYPOHRER.COM | 5

Inventory: Active Listings Though the number of active listings still sits in the double digits, we have seen an increase of +26% YOY from an average of 41 active listings in Q4 2021 to an average of 52 active listings in Q4 2022.

ACTIVE LISTINGS

194

190

200

172

150 137

130

122

100

105 60

58

50 39

31

40

OCT-22

JULY-22

APR-22

JAN-22

OCT-21

JULY-21

APR-21

JAN-21

OCT-20

JULY-20

APR-20

JAN-20

OCT-19

JULY-19

APR-19

JAN-19

OCT-18

JULY-18

APR-18

JAN-18

OCT-17

JULY-17

JAN-17

APR-17

0%

Days On Market Homes continue to sell at an improved rate in Q4 2022. Single family homes stayed on the market for an average of 125 days, which was a YOY improvement of -15% compared to Q4 2021, when homes took an average of 146 days to sell.

125 DAYS

590

600

571

400 357 322

300 215 193

200 145

120 138

100 73

125 108

0

95

GARY POHRER | GARYPOHRER.COM | 6

OCT-22

JULY-22

JAN-22

OCT-21

JULY-21

APR-21

JAN-21

OCT-20

JULY-20

APR-20

JAN-20

OCT-19

JULY-19

APR-19

JAN-19

OCT-18

JULY-18

APR-18

JAN-18

OCT-17

JULY-17

APR-17

JAN-17

39 APR-22

DAYS ON MARKET

500

Sale to List Ratio* In Q4 2022, single family homes sold on average -7% below the asking price.

105

105

100 97

SALE TO LIST RATIO

98

95

96

93

90

91 86

87

85

85

80

79 78 76

75

DEC-22

SEP-22

JUN-22

MAR-22

DEC-21

SEP-21

JUN-21

MAR-21

DEC-20

SEP-20

JUN-20

MAR-20

DEC-19

SEP-19

JUN-19

MAR-19

DEC-18

SEP-18

JUN-18

MAR-18

DEC-17

SEP-17

JUN-17

MAR-17

70

FOOTER: Glossary Sale to List Ratio: The ratio of the final sale price of a home to its list, or asking, price expressed as a percentage.

If the sale to list ratio is above 100%, the home sold for more than the list price. If it’s less than 100%, the home sold for less than the list price.

GARY POHRER | GARYPOHRER.COM | 7

Single Family Homes Transactions 2022 closed out the year with a total of 106 single family home transactions. This was on par or in some cases above what we’ve seen in the years prior to 2020.

250

233

185

200

TRANSACTIONS

219

162

152 131

150

120 139 118

100

111

97

106 95

50

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

0

Single Family Homes Total Sales Value Total sales value for single family homes was just shy of $2B in 2022, closing out the year at $1.98B. The breakdown was split fairly evenly between waterfront ($870M) and non-waterfront ($1.1B) single family home sales.

Total sales value on single family homes was down -58% in 2022 compared to 2021, flat compared to 2020, and up significantly compared to a typical year pre-2020.

$3.5B $3,0666,242,429

$2.5B $2B $1,601,984,854

$1.5B

$1,464,257,854 $1 464 257 854

$1B $500M

Total Sales Value ($)

GARY POHRER | GARYPOHRER.COM | 8

Sales Value ($) Non-Waterfront Sales

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

TOTAL SALES VALUE ($)

$3B

Sales Value ($) Waterfront Sales

Single Family Homes Price Per Square Foot (PPSF): Home Size

PPSF ($) HOME SIZE

PPSF: Home Size was up +46% YOY. Waterfront PPSF: Home Size was up +31% YOY compared to non-waterfront, which was up +59% YOY.

$6,000 $5,5542

$5,000 $4,077

$4,000

$3,374

$3,000 $2,000 $1,000

Average $/SF

$/SF Non-Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

$0

$/SF Waterfront Sales

Single Family Homes Price Per Square Foot (PPSF): Lot Size PPSF: Lot Size was up +47% YOY. Waterfront PPSF: Lot Size was up +44% YOY and non-waterfront was up +53% YOY.

$1,400

$$1,396 396

$1,200

$1,091 1 091

$1,000

$931

$800 $600 $400 $200

Average $/SF

$/SF Non-Waterfront

2022

2021

2020

2019

$0 2018

PRICE PER SF ($) LOT SIZE

$1,600

$/SF Waterfront Sales

GARY POHRER | GARYPOHRER.COM | 9

Single Family Home Average Sale Price ($) Average sale price was up +33% YOY. Waterfront average sale price was up +25% YOY compared to non-waterfront average sale price, which saw an increase of +42% YOY.

$45,000 $41,666,475

$35,000 $30,000 $25,000 $20,000

$17,248,726

$15,000

$12,365,176

$10,000 $5,000

Average Sale Price ($)

Average Sale Price ($) Non-Waterfront

CAGR for the Palm Beach single family home asset class over the last 40 years sits at 8.97%

18% 15.6%

14%

CAGR

12%

10.5%

10% 8%

8.97% 6.6%

6%

4.5%

4% 2% 0 ‘82-’91

‘92-’01

GARY POHRER | GARYPOHRER.COM | 10

‘02-’11

2022

Average Sale Price ($) Waterfront

Compounding Annual Growth Rate (CAGR)/ Price Appreciation

16%

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

AVERAGE SALE PRICE ($)

$40,000

‘12-’22

‘82-’21

Compounding Annual Growth Rate (CAGR)/ Price Appreciation The 2021 trajectory of record high price appreciation on single family homes continued in 2022. Single family homes appreciated at a rate of +46% YOY.

TOTAL SALES VALUE ($)

60%

+46%

50% 40%

+33%

30%

+21%

20% 10% 0% -10%

-10%

-13%

-20% 1983

1985

1989

-18% 1993

1997

2001

2005

2009

2013

2017

2021

Price Per Square Foot: Comparing Performance Across Neighborhoods Historically, the Estate Section traded at a premium compared to other neighborhoods on the island. In 2022, the other neighborhoods caught up and were no longer considered more of a value purchase.

WATERFRONT 2021

2022

NON-WATERFRONT GROWTH YOY

2021

2022

GROWTH YOY

NORTH END

$5,045

$6,694

33%

$2,103

$3,398

62%

IN-TOWN

$4,161

$5,496

32%

$1,916

$3,267

71%

ESTATE SECTION

$3,810

$4,716

24%

$2,411

$3,492

45%

FOOTER: Glossary Compound Annual Growth Rate (CAGR): A performance metric that provides insight into an investment’s growth rate over a specified period of time longer than one year.

GARY POHRER | GARYPOHRER.COM | 11

NORTH END SINGLE FAMILY HOMES Palm Beach’s North End, located north of Wells Road, is celebrated for quiet seclusion. Thanks to zoning laws that prohibit condos and commercial properties in this area, many residents enjoy private beachfront and lake trail access.

Q4 Summary: Single Family Homes: North End Transaction volume was down -62% YOY for the fourth quarter of 2022.

Total sales value was down -48%, largely driven by a -61% decline in non-waterfront sales value.

PPSF: Home Size was up +42% in Q4 YOY. Additionally, PPSF: Lot Size increased +40% YOY driven by a single large waterfront transaction on the North End.

% CHANGE

Q4 2022

Q4 2021

TRANSACTIONS

8

21

-62%

WATERFRONT

1

3

-67%

NON-WATERFRONT

7

18

-61%

TOTAL SALES VALUE

$142,350,000

$276,049,551

-48%

WATERFRONT

$66,000,000

$82,458,000

-20%

NON-WATERFRONT

$76,350,000

$193,591,551

-61%

AVERAGE SALES PRICE

$17,793,750

$13,145,217

35%

$66,000,000

$27,486,000

140%

$10,907,143

$10,755,086

1%

AVERAGE PPSF: HOME SIZE

$4,527

$3,198

42%

WATERFRONT

$7,752

$5,517

41%

NON-WATERFRONT

$3,330

$2,712

23%

$1,151

$823

40%

$2,407

$915

163%

$793

$789

0%

WATERFRONT NON-WATERFRONT

AVERAGE PPSF: LOT SIZE WATERFRONT NON-WATERFRONT

YEAR OVER YEAR

Most Recent North End Sales SALE PRICE

ADDRESS

WATERFRONT?

$66,000,000

6 Via Los Incas

Yes

SF HOME SIZE APPROX.

8,514

PPSF ($)

SF LOT SIZE

PPSF ($)

$7,752

27,425

$2,407

HOME SIZE

APPROX.

LOT SIZE

$16,300,000

225 W Indies Drive

No

4,393

$3,710

14,623

$1,115

$15,050,000

245 Ridgeview Drive

No

4,250

$3,541

11,500

$1,309

$12,000,000

1150 N Ocean Way

No

3,885

$3,089

24,977

$480

$10,250,000

210 Palmo Way

No

Lot Sale

--------

14,009

$732

$9,550,000

231 El Dorado Lane

No

2,794

$3,418

10,481

$911

$6,700,000

286 Orange Grove Road

No

2,864

$2,339

8,154

$822

$6,500,000

225 El Pueblo Way

No

Lot Sale

--------

12,502

$520

GARY POHRER | GARYPOHRER.COM | 13

Single Family Homes Transactions: North End

120

109

110

100 96

100 90 75

80 68

70 60 50

65

71

70

60

57

56

40 30

40

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

20 2010

ANNUAL CLOSED TRANSACTIONS

2022 closed out the year with a total of 60 single family home transactions. This was -40% to -45% below the transaction volumes from 2020 and 2021, but on par with pre-2020 levels for the North End.

Single Family Homes Total Sales Value

$1.4B $1,262,238,499

$1.2B $1B $800M $665,073,870

$600M

$416,664,750

$400M $200M

Total Sales Value

GARY POHRER | GARYPOHRER.COM | 14

Sales Value Non-Waterfront

Sales Value Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

TOTAL ANNUAL SALES VALUE ($)

Total sales value on the North End was just above $1B in 2022, with $600M generated from non-waterfront sales, and $400M from waterfront sales.

Single Family Homes Price Per Square Foot (PPSF) PPSF: Home Size is up +46% YOY, with waterfront up +33% YOY ($5,045 to $6,694) and non-waterfront up +62% YOY ($2,103 to $3,398).

$8,000 $7,000

$6,694

$6,000

PPSF ($)

$5,000 $4,239

$4,000

$3,398

$3,000 $2,000 $1,000

Average $/SF

$/SF Non-Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

$0

$/SF Waterfront Sales

Single Family Home Average Sale Price ($) Average sale price was up +31% YOY, with waterfront sales increasing +5% YOY, and non-waterfront seeing a big lift, up +51% YOY.

$41,666,475

$40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000

$17,248,726

$15,000,000

$12,365,176

$10,000,000 $5,000,000

Average Sale Price ($)

Average Sale Price ($) Non-Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

AVERAGE SALE PRICE ($)

$45,000,000

Average Sale Price ($) Waterfront

GARY POHRER | GARYPOHRER.COM | 15

\

IN-TOWN SINGLE FAMILY HOMES Nestled between Worth Avenue and Wells Road lies the energetic center of Palm Beach Island, In-Town. Packed with shops, secluded beaches, and five-star restaurants, this hub of culture and leisure lures residents with a flair for cosmopolitan life.

Q4 Summary: Single Family Homes: In-Town In-Town transaction volume was down -70% YOY in Q4 2022, the sixth consecutive quarter that saw a decline in transaction volume.

Total sales value was also down -44% YOY at $48M in Q4 2022, compared to $87M in Q4 2021. Total sales value was up $10M QOQ from Q3 2022.

In-Town PPSF: Home Size was up +82% YOY, and PPSF: Lot Size was up +51%.

% CHANGE

Q4 2022

Q4 2021

3

10

-70%

TOTAL SALES VALUE

$48,539,137

$86,866,100

-44%

AVERAGE SALES PRICE

$16,179,712

$8,686,610

86%

AVERAGE PPSF: HOME SIZE

$3,913

$2,153

82%

AVERAGE PPSF: LOT SIZE

$1,272

$845

51%

TRANSACTIONS

YEAR OVER YEAR

Most Recent In-Town Sales SF HOME SIZE

PPSF ($)

SF LOT SIZE

PPSF ($)

$4,224

17,119

$1,402

5,962

$3,579

19,502

$1,094

760

$4,211

1,542

$2,075

SALE PRICE

ADDRESS

WATERFRONT?

$24,000,000

124 Brazilian Avenue

No

5,682

$21,339,137

211 Dunbar Road

No

$3,200,000

151 Root Trail

No

APPROX.

HOME SIZE

APPROX.

LOT SIZE

Sold | 124 Brazilian Avenue | Palm Beach | $24,000,000 NOTE: Reporting in this section does not break out waterfront versus non-waterfront properties, as there are limited waterfront sales in this area. In most years, zero waterfront homes sold.

GARY POHRER | GARYPOHRER.COM | 17

Single Family Homes Transactions: In-Town

95

87

85 75 62

65

55

55

55 45 35

36

34

26

25

28

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

15 2010

ANNUAL CLOSED TRANSACTIONS

2022 closed out the year with a total of 28 single family home transactions. This was -55% to -68% below the transaction volume we saw in 2020 and 2021 respectively, but flat-to-below pre-2020 levels of In-Town transactions.

HED: Single Family Homes Total Sales Value

$600K

$558,634,298

$500K $400K $358,549,842

$300K

$246,146,613

$200K $167,807,274

$100K

$158,463,953

$89,497,284

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

TOTAL ANNUAL SALES VALUE ($)

Total sales value on In-Town sales was just above $358M in 2022. This represented a -24% decline from 2021 total sales value.

Total Sales Value ($)

GARY POHRER | GARYPOHRER.COM | 18

Single Family Homes Price Per Square Foot PPSF: Home Size was up +71% YOY, with waterfront increasing +32% YOY ($4,161 to $5,496), and non-waterfront growing +71% YOY ($1,916 to $3,267).

$3,500

$3,267

$3,000 $2,500

PPSF ($)

$2,000 $1,916

$1,500

$ 328 $1,328 $1,118

$1,000 $500

$644

$788

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2010

2011

$0

Single Family Home Average Sale Price ($) Average sale price was up +68% YOY from $7.6M (2021) to $12.8M (2022).

$11,560,489

$12,000 $10,000 $8,000

$4,437,351

$4,310,122

$4,000

$7,388,470

$3,442,203 $3,091,846

$2,000

$2,237,149

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

AVERAGE SALE PRICE ($)

$14,000

GARY POHRER | GARYPOHRER.COM | 19

ESTATE SECTION SINGLE FAMILY HOMES The Estate Section comprises all residences south of Worth Avenue to Sloans Curve.

It is renowned for its opulent residencies and exclusive social clubs including The Everglades Club, Bath and Tennis Club, and Mar-a-Lago.

Q4 Summary: Single Family Homes: Estate Section The Estate Section had another slow quarter of transactions, selling just two properties in Q4 2022. This was down -75% compared to Q4 of 2021.

In Q4 2022, PPSF was up +23% YOY for non-waterfront sales. There were no waterfront sales in the Estate Section during this period.

% CHANGE

Q4 2022

Q4 2021

TRANSACTIONS

2

8

-75%

WATERFRONT

0

4

-100%

NON-WATERFRONT

2

4

-50%

TOTAL SALES VALUE

$55,087,119

$190,268,758

-71%

-

$112,150,000

-

$55,087,119

$78,118,758

-29%

$27,543,560

$23,783,595

16%

-

$28,037,500

-

$27,543,560

$19,529,690

41%

$4,271

$4,234

1%

-

$5,008

-

NON-WATERFRONT

$4,271

$3,465

23%

AVERAGE PPSF: LOT SIZE

$1,251

$1,019

23%

-

$1,331

-

$1,251

$763

64%

WATERFRONT NON-WATERFRONT AVERAGE SALES PRICE WATERFRONT NON-WATERFRONT AVERAGE PPSF: HOME SIZE WATERFRONT

WATERFRONT NON-WATERFRONT

YEAR OVER YEAR

Most Recent Estate Section Sales SALE PRICE

ADDRESS

WATERFRONT?

SF HOME SIZE APPROX.

PPSF ($) HOME SIZE

SF LOT SIZE

PPSF ($)

APPROX.

LOT SIZE

$32,087,119

220 Jungle Road

No

7,738

$4,147

19,201

$1,671

$23,000,000

150 El Vedado Road

No

5,161

$4,457

24,851

$926

GARY POHRER | GARYPOHRER.COM | 21

Single Family Homes Transactions: Estate Section

70 61

60 50 36

40 30

22

25

20

18

21

10

14

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

0 2010

ANNUAL CLOSED TRANSACTIONS

2022 closed out the year with a total of 18 single family home transactions. This was -50% to -70% below the transaction volume we saw in 2020 and 2021, but on par with pre-2020 levels of Estate Section transaction volume.

Single Family Homes Total Sales Value: Estate Section

$1.4B $1,332,307,283

$1.2B $1B $846,093,225

$800M $600M

$486,214,058

$400M $200M

Total Sales Value

GARY POHRER | GARYPOHRER.COM | 22

Sales Value Non-Waterfront

Sales Value Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

TOTAL ANNUAL SALES VALUE ($)

Total annual sales value on estate section properties was just above $580M in 2022. This was a -56% decline from 2021 total sales value.

Single Family Homes Price Per SF: Estate Section PPSF: Home Size was up +36% YOY. Waterfront PPSF: Home Size was up +24% YOY ($3,810 to $4,716), compared to non-waterfront PPSF: Home Size, which was up +45% YOY ($2,411 to $3,492).

$5,000

$4,716

$4,500

$4,267

$4,000

PPSF ($)

$3,500

$3,492 3 492

$3,000 $2,500 $2,000 $1,500 $1,000 $500

Average $/SF

$/SF Non-Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2010

2011

$0

$/SF Waterfront Sales

Single Family Home Average Sale Price: Estate Section Average sale price was up +48% YOY from $21.8M (2021) to $32.3M (2022).

$40,723,000

$40,000 $35,000

$22,319,747

$30,000 $25,000

$21,815,680

$20,000 $15,000 $10,000 $5,000

Average Sale Price ($)

Average Sale Price ($) Non-Waterfront

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

AVERAGE SALE PRICE ($)

$45,000

Average Sale Price ($) Waterfront

GARY POHRER | GARYPOHRER.COM | 23

CONDOS & TOWNHOMES ALL NEIGHBORHOODS Whether you seek a large building with resort-style amenities or the boutique elegance of a small, full-service site, Palm Beach Island offers an expansive range of options just steps from shorelines, shops, restaurants and more. Palm Beach townhomes are ideal for those who seek the convenience of a condo but crave the spaciousness of a house.

Q4 Summary: Condominiums and Townhomes Transaction volume in Q4 was down -60% YOY, due to a -53% decline in In-Town transactions and a -65% decline in South End transactions.

Total sales value was down -49% YOY. This was the first quarter where we saw a decline in PPSF, which was down-7% YOY for In-Town condos and townhomes and -3% decline for South End condos and townhomes. % CHANGE

Q4 2022

Q4 2021

TRANSACTIONS

52

130

-60%

IN-TOWN

18

38

-53%

SOUTH END

32

92

-65%

TOTAL SALES VALUE

$85,499,157

$168,045,415

-49%

IN-TOWN

$38,236,500

$101,183,225

-62%

SOUTH END

$19,012,657

$66,862,190

-72%

AVERAGE SALES PRICE

$1,644,215

$1,292,657

27%

IN-TOWN

$2,124,250

$2,662,716

-20%

SOUTH END

$ 594,146

$726,763

-18%

$1,264

$889

42%

IN-TOWN

$1,711

$1,834

-7%

SOUTH END

$487

$499

-3%

AVERAGE PPSF: HOME

YEAR OVER YEAR

Most Recent Condo and Townhome Sales SALE PRICE

ADDRESS

SF UNIT SIZE

PPSF ($)

$23,750,000

110 Sunset Avenue E, 4b

4,668

$5,088

APPROX.

UNIT SIZE

$4,500,000

100 Sunrise Avenue, 515

1,547

$2,909

$4,150,000

100 Royal Palm Way, G-3

2,535

$1,637

$3,750,000

400 S Ocean Boulevard, 4060

1,716

$2,185

$3,664,000

150 Bradley Place, 0205

1,815

$2,019

$3,604,500

350 S Ocean Boulevard, 2020

1,234

$2,921

$3,400,000

429 Australian Avenue, 80

1,914

$1,776

$3,275,000

100 Sunrise Avenue, 505

1,673

$1,958

$2,925,000

400 S Ocean Boulevard, 2020

1,716

$1,705

$2,200,000

300 S Ocean Boulevard, 3e

1,257

$1,750

$1,950,000

226 Brazilian Avenue, 0080

1,317

$1,481

$1,950,000

44 Cocoanut Row, 321a

1,272

$1,533

$1,750,000

44 Cocoanut Row, 507a

900

$1,944

$1,650,000

315 S Lake Drive,4a

1,816

$909

$1,280,000

389 S Lake Drive, 4f

1,194

$1,072

$1,000,000

44 Cocoanut Row, 306b

900

$1,111

GARY POHRER | GARYPOHRER.COM | 25

Inventory: Active Listings In Q4 2022, inventory was up +37% YOY. The same period in 2021 averaged 73 active listings per month, whereas Q4 2022 averaged 100 active listings per month.

332

350

323

322

ACTIVE LISTINGS

300 276

250

250

265 240

200

236

150

114 74

100 75

50

53

OCT-22

JULY-22

APR-22

JAN-22

OCT-21

JULY-21

APR-21

JAN-21

OCT-20

JULY-20

APR-20

JAN-20

OCT-19

JULY-19

APR-19

JAN-19

OCT-18

JULY-18

APR-18

JAN-18

OCT-17

JULY-17

APR-17

JAN-17

OCT-17

0

Days on Market

136 DAYS

The number of days on market was up +14% compared to the same period last year. During Q4 2022, condos and townhomes took an average of 136 days to sell.

350

DAYS ON MARKET

300

305

325

300 232

250

228

246

229 193

200

147

150

151

199

185 151

176

175

100

106

150

148

91

50

82

GARY POHRER | GARYPOHRER.COM | 26

OCT-22

JULY-22

APR-22

JAN-22

OCT-21

JULY-21

APR-21

JAN-21

OCT-20

JULY-20

APR-20

JAN-20

OCT-19

JULY-19

APR-19

JAN-19

OCT-18

JULY-18

APR-18

JAN-18

OCT-17

JULY-17

APR-17

JAN-17

OCT-17

0

Sale to List Ratio

90%

The sale to list ratio for condos and townhomes hovered right around 90% for Q4 2022.

This was down -5% compared to last quarter and the previous three quarters.

SALES TO LIST RATIO

100 93

95

90

90

95

89

93.1

93

87

89 88

87

85

96

94

93

88

98

97

96

85

85

85

83

80 75

OCT-22

JULY-22

APR-22

JAN-22

OCT-21

JULY-21

APR-21

JAN-21

OCT-20

JULY-20

APR-20

JAN-20

OCT-19

JULY-19

APR-19

JAN-19

OCT-18

JULY-18

APR-18

JAN-18

OCT-17

JULY-17

APR-17

JAN-17

OCT-17

70

Condominiums & Townhomes Transactions

900 829

800 700 600

586

500 400 300

243

200 100

All Transactions

Transactions (#) South End

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

0 2010

ANNUAL CLOSED TRANSACTIONS

2022 closed out the year with a total of 513 condo and townhome transactions. This represented a -38% decline, compared to 2021. As we saw with the single family home asset class, the downward trend with condos and townhomes was only in comparison to 2021 behavior; it was still above or of similar volume to pre-2020 levels.

Transactions (#) In-Town

GARY POHRER | GARYPOHRER.COM | 27

Condominiums & Townhomes Total Sales Value

$1,200,000,000 $1,000,000,000

$967,663,135

$800,000,000 $600,000,000

$456,287,625 $407,801,437

$400,000,000 $200,000,000

All Transactions

Transactions (#) South End

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

TOTAL ANNUAL SALES VALUE ($)

Total sales value in 2022 for condos and townhomes was down -14%, closing out the year at $831M. The breakdown was split fairly evenly between In-Town ($395M) and South End sales ($408M).

Transactions (#) In-Town

Condominiums & Townhomes Price Per SF PPSF grew YOY across both In-Town and South End condos. In-Town grew +59% YOY to $2,169 PPSF and South End grew +30% to $698 PPSF. Note, Q4 was the first quarter we saw a decrease in PPSF across both In-Towns and South End condos, which is something to watch as we enter 2023.

$2,169

$2,500

PPSF ($)

$2,000 $1,500 $1,000

$698

$500

$/SF In-Town

GARY POHRER | GARYPOHRER.COM | 28

$/SF South End

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

$0

Condominiums & Townhomes Average Sale Price ($) Average sale price was up +39% YOY, with In-Town average sale price was up +58% YOY and South End average sale price up +24% YOY.

$3,000,000

$2,969,510

$2,500,000 $2,000,000 $1,619,876

$1,500,000

$1,078,840 1,078 840

$1,000,000 $500,000

Average Sale Price

Average Sale Price In-Town

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$0 2010

AVERAGE SALE PRICE ($)

$3,500,000

Average Sale Price South End

Compounding Annual Growth Rate (CAGR)/ Price Appreciation CAGR for the Palm Beach In-Town condo and townhome asset class over the last 40 years sits at 6.5%, largely impacted by stellar growth in the last several years.

12% 10%

10% 7.7%

8%

CAGR

6.5%

6% 4%

3.5%

1.3%

2% 0 ‘82-’91

‘92-’01

‘02-’11

‘12-’22

‘82-’21

GARY POHRER | GARYPOHRER.COM | 29

Compounding Annual Growth Rate (CAGR)/ Price Appreciation

ANNUAL % RETURN (+/-)

2022 continued on the 2021 trajectory of record high price appreciation on In-Town condos and townhomes.

Price appreciation for In-Town condos and townhomes grew +59% YOY.

60% 55% 45% +31.1%

35% 30% 25%

+21.1%

+22.7% +15.7% +8.4%

15%

17.7%

14.6%

5% 0% -5%

-1%

-15% -25%

-6.4%

1983

1985

1987

1989

1991

1993

GARY POHRER | GARYPOHRER.COM | 30

1995

-13.3%

-11.9%

-12.5% 1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

In Closing We appreciate you taking the time to read our report, and hope you found our insights on the Palm Beach Island market interesting.

I would like to again express my gratitude to my clients, colleagues and prospective clients for taking the time to read our report each quarter and for entrusting us with your business over the years. 2022 was another very busy year for us, culminating in over $350M in total sales value. We look forward to another busy year, and please do not hesitate to reach out if we can be of assistance to you in 2023 and beyond.

Warmest wishes,

Gary Pohrer Sales Associate Executive Director of Luxury Sales M: 561.262.0856 gary.pohrer@elliman.com

Source: Above data is pulled from Palm Beach MLS, The Beaches MLS and the Palm Beach Property Appraisers (PAPA). Specifically, we are only looking at transactions located in the 33480 zip code.

340 ROYAL POINCIANA WAY, M302, PALM BEACH, FL 33480. 561.655.8600 © 2023 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.

GARY POHRER | GARYPOHRER.COM | 31