MIAMI-DADE & BROWARD COUNTIES RESIDENTIAL MARKETS

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President & CEO, EWM Realty International | Ron Shuffield Senior Vice President & General Sales Manager, EWM Realty International | Sherrie Porter Senior Vice President, Business Development, EWM Realty International | Patrick O’Connell

EDITORIAL Kreps DeMaria PR & Marketing | Israel Kreps Kreps DeMaria PR & Marketing | Caroline Underwood

RESEARCH Chief Financial Officer, EWM Realty International | Hena M. Aguirre, CPA Financial Analyst, EWM Realty International | Sanja Shank, MBA TrendGraphix, Inc.

DESIGN Director of Marketing, EWM Realty International | Lee S. Casey, MBA

SPECIAL CONTRIBUTORS Director, Transportation & Public Works, Miami-Dade County | Alice N. Bravo, P.E. Founder & Principal, Washington Economics Group | Dr. J. Antonio Villamil SOUTH FLORIDA SETTING THE GLOBAL PACE

EWM Realty International’s 2017 South Florida Real Another key factor to consider is Florida’s booming Estate Market Outlook provides a snapshot of 2016 population growth, which pushed Florida to be results and trends expected to influence the 2017 recognized as the third largest state in the country in residential real estate markets in Miami-Dade and 2014, bypassing New York. Our State is growing by just Broward counties. over 1,000 “net” new residents per day! The latest U.S. Census Bureau data shows that the tri-county area of The proprietary platform from which this information is Miami-Dade, Broward and Palm Beach is now the eighth- gleaned, coupled with insights provided by our internal most populated metropolitan statistical area (MSA) in the research team, affords our readers a one-of-a-kind nation, with the three counties comprising just over six perspective on South Florida’s dynamic residential real million permanent residents, or 30% of the State’s total estate market. population of 20,612,000 residents. Of the 1,000 net new residents establishing homes in Florida each day, 200 During 2016, we saw a confluence of factors impacting to 300 of them are moving to the tri-county area every residential real estate: continued downward pressure on twenty-four hours! the foreign currencies associated with buyers in South Florida, a contentious presidential election season, and We are also seeing tremendous growth in each County’s growing inventory (particularly in the $1 million-plus urban areas. While Miami-Dade’s Downtown/Midtown/ condominium market). As we enter 2017, these matters Brickell population boom is clearly in the lead, downtown will continue to have an influence on segments of our Fort Lauderdale is experiencing its own renaissance, Greater South Florida market. and Palm Beach County’s downtown areas are also experiencing dramatic growth. We will also need to further the efforts to find viable solutions for our workforce housing affordability. The As the new Rail system opens service to its inventory levels for starter homes, particularly single- downtown stations in Miami, Fort Lauderdale and West family residences, continue to be low, creating a lack of Palm Beach in the summer of 2017—making commuting affordability for many first-time buyers. While banks are more feasible—we will see a continued increase in the now helping to address these issues with less onerous ‘inter-connectedness’ of the tri-county neighborhoods. credit standards and lower down payments, there will continue to be pressure on this particular buying group Lastly, we will continue to expand as a true international due to the shrinking availability of product. destination, with the eyes of the world still longing to have a stake in South Florida and to own property here. So.... is there a bright spot as we enter the New Year? Absolutely! There are several. Unlike the Great These elements are the reality of a vibrant, growing area. Recession, which recorded high levels of inventory and Our EWM team looks forward to continuously serving as few viable buyers, both factual and anecdotal data from positive ambassadors of South Florida’s residential real our 850 real estate professionals reveal that there is a estate market. significant pent-up demand of buyers on the sidelines, especially luxury buyers -- simply waiting for today’s Sincerely, pricing to more closely align with their expectations of market value.

Therefore, the issue-at-hand for 2017 will be Ron Shuffield appropriate pricing. You will read much more President & CEO throughout this report on the importance of taking early EWM Realty International action in this new year to re-position the pricing of our expanding inventories, especially in the luxury markets. 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK KEY FACTS & FIGURES This report provides an analysis of a number of key topics and market influencers impacting Miami-Dade and Broward Counties. While the report addresses the topics in detail, one of the key factors of rising inventory is the need to look at a two-year window in the million-dollar-plus market to fully appreciate the situation of inventory and sales. To that end, we have outlined the following key factors for each County, respectively:

MIAMI-DADE COUNTY Miami-Dade currently has the largest supply of million dollar-plus condominiums in history, with 2,549 available as of 12/31/16. The last time we saw such high levels of inventory was on 12/31/06 with 1,849 condos for sale – and at the very cusp of the Great Recession.

A two-year snapshot of million dollar condominiums in Miami-Dade reveals a 75% increase in inventory from December 2014 to December 2016, while single-family home inventory in excess of $1 million spiked 55% during this same period.

For all price categories market-wide, combined single-family and condominium inventory in Miami-Dade from December 2015 to December 2016 was up 14% year-over-year, while sales market-wide were down 11%.

Months of available inventory in the overall single-family home market were at 6 months as of December 2016, and 14 months in the overall condominium market.

A preferable range of available inventory for a market is 6 to 9 months; therefore, single-family homes are within that range, but condominiums are much higher—a number that becomes increasingly disparate at the higher-end segment of the condominium market.

In the $1 million and under single-family home market, 2016 saw a 6% increase in inventory over 2015, while sales decreased 6%.

In the $1 million and under condominium market, inventory increased 16%, while sales decreased 16%.

The $1 million-and-over single-family home market, inventory grew 15% throughout the year, while sales were down 10%.

Months of available single-family inventory priced in excess of $1 million consistently grew throughout the year, and ended at 26 months. Noting that the ‘window’ for total optimum months of inventory traditionally grows as prices increase above $1 million (12-18 months vs. 6-9 months), the year-end 2016 numbers are obviously still quite high.

It’s the $1 million-and-over condominium market that is experiencing the biggest challenges, with year-over-year inventory up 19% and, more importantly, sales down 22%. This is on top of the large increases from 2014 to 2015, a pattern that continued from 2015 to 2016.

2016 inventory numbers sharply increased throughout the year, with months of available inventory now hovering at 55 months for condominiums priced above $1 million.

No doubt, the most compelling factor of declining sales at this price point is the exchange rate pressures from key countries, such as Brazil, Argentina, Russia and Venezuela, among others, all of which have experienced significant downward currency valuations. However, over the past few months, we have seen some encouraging news in the form of positive currency rate movement, with an increase in the value of many currencies against the U.S. dollar.

4 2017 REAL ESTATE OUTLOOK BROWARD COUNTY

In Broward County, the growth in inventory and decrease in sales were less pronounced than in Miami-Dade, with overall inventory down 3% for the year, while overall 2016 sales were relatively flat, down 1% from 2015.

Prior to 2016, Broward sales had been experiencing single-digit growth over the past few years.

In the million-dollar-plus condominium market, though, while the inventory of these units is not nearly as pronounced in volume (Broward has about one-sixth the number of million-dollar-plus condominiums for sale as Miami-Dade), the percentage growth is actually greater, with a 23% increase in inventory from December 2015 to December 2016.

The months of available inventory in the overall single-family home market was at 4 months as of December 2016, and 6 months in the overall condominium market in that same time period.

During 2016, the median price of a single-family home leveled off at $320,000-$325,000, after five years of steady increases.

The median price of a condominium also leveled off in the second half of 2016, settling between $145,000 and $147,000.

In the $1 million and under single-family home market, 2016 noted a 13% decrease in inventory over 2015, while sales increased 1%.

In the $1 million and under condominium market, inventory remained flat, while sales decreased 3%.

In the $1 million and over single-family home market, inventory grew 13% throughout the year, while sales were down 7%.

Single-family home available months of supply was 22 months as of 12/31/16.

In the $1 million-and-over condominium market, inventory increased 23%, while sales decreased 28%.

Condo available months of supply was 29 months as of 12/31/16.

EWM REALTY INTERNATIONAL 5 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK SOUTH FLORIDA ECONOMIC PERSPECTIVES FOR 2017 PRESENTED BY WASHINGTON ECONOMICS GROUP, INC.

The South Florida economy is expected to expand at a moderate pace this year, driven by a growing U.S. economy and the “Global Brand” of Miami as a preferred business and visitor region for the Americas. However, there are a number of key factors that suggest a slower pace of economic activity this year, especially in construction, real estate-related industries and international trade:

U.S. interest rates, as measured by the Fed Funds rate, are likely to increase 75-100 basis points by end-of-year since U.S. inflation started to increase in late 2016. FED BRAZIL 1 monetary policy will tighten modestly.

Brazil, South Florida’s top trade partner, has been in recession for the past two years. A slow economic 2 recovery is likely in 2017, accelerating in 2018.

Global economic growth remains sluggish, with BREXIT providing concerns about the U.K. and E.U. economic 3 outlook.

A strong U.S. dollar exchange rate will continue to impact negatively exports and the purchasing power of 4 international visitors to Miami-Dade and the State.

Once Brazil and the global economy recover from slow economic growth, Miami-Dade and the South Florida Region will resume its previously strong pace of economic growth as the fundamental attributes of the County and region are positive for long-term expansion. If the New Administration and Congress significantly lower the corporate tax rate as promised, and decrease regulations on the financial industry and others, the policy changes would be beneficial to Miami-Dade and South Florida starting late this year and into 2018.

Dr. J. Antonio Villamil Founder & Principal Washington Economics Group, Inc.

6 2017 REAL ESTATE OUTLOOK INTEREST RATES BREXIT

EXCHANGE RATES

EWM REALTY INTERNATIONAL 7

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK THE SMART PLAN MIAMI-DADE’S TRANSPORTATION FUTURE PRESENTED BY MIAMI-DADE COUNTY DEPARTMENT OF TRANSPORTATION & PUBLIC WORKS

Improving transit and mobility for all of our 2.7 million residents Metrorail North Station and run west down Kendall is one of Miami-Dade County’s top priorities because they affect Drive to SW 162nd Avenue. our quality of life and our economy. Our community has and continues to prosper because people from all over the world · The system’s North Corridor would extend the existing Metrorail would like to move to, and do business here. And as Miami-Dade at Dr. Martin Luther King, Jr. Metrorail station and run along NW continues to grow, we need to ensure that our current and 27th Avenue to NW 215th Street. future residents can get to where they are going faster and safer as well as that our transportation system keeps pace · The Northeast Corridor would run commuter trains from with increased demand. Miami-Dade County Mayor Carlos A. downtown Miami to Aventura, utilizing existing Florida East Coast Gimenez and the Board of County Commissioners are focused on Railway tracks. addressing the area’s traffic issues by expanding the existing 25- mile Metrorail system along six corridors with the SMART · The South Dade Transitway Corridor component would convert Plan. The SMART Plan, an acronym which stands for “Strategic the existing busway along U.S. 1 in South Dade into an upgrade Miami Area ,” is acomprehensive plan to expand rail system. mass transit throughout Miami- Dade. The goal of these corridors is to connect to the areas currently Six rapid transit corridors have been identified in the SMART not covered by the existing Metrorail lines through a much more Plan, including: a Beach Corridor, East-West Corridor, Kendall affordable and rapid-to-construct light-rail or at-grade system. Corridor, North Corridor, Northeast Corridor and the South Dade Transitway. The new transit lines are designed to directly support But, rapid transit will not be the only component of the SMART both the mobility and growth of our current plan. The plan will include a Bus Express Road Transit (BERT) and future population. network that will also link the SMART corridors with existing Metrorail routes. The SMART plan was originally developed by Miami-Dade County and later adopted by the Metropolitan Planning Development of a Funding for this is underway. In order to Organization with the goal of addressing congestion by providing ensure the success of the SMART plan, the MPO Fiscal Priorities alternate routes for commuters. Committee and transportation partners are meeting routinely to discuss both the financial framework and policies necessary to With the evolution of the new transit plan, real solutions to further advance the plan. our traffic challenges will occur. A summary of the SMART Plan Rapid Transit Corridors is as follows: The county categorizes all six transit lines as top priority and Miami-Dade Mayor Carlos A. Gimenez has given his commitment · The Beach Corridor, is a proposed light rail or to developing a funding plan in order to make this a reality. extension that would connect Miami Beach to the mainland along the MacArthur Causeway. The line would extend into South We are very proud of numerous individuals and agencies working Beach from the Miami Beach side, and into the Midtown area and in unison and diligently to provide Miami-Dade County viable Design District on the mainland side. solutions to its traffic challenges, and the SMART Plan is clearly a key component. Our goal is to make Miami-Dade a car · The East-West Corridor would be placed along the Dolphin optional community. Expressway, with the railsystem connecting downtown Miami to our western suburbs. Alice N. Bravo, P.E. Director, Transportation & Public Works · The Kendall Corridor rail system would operate from the Miami-Dade County

EWM REALTY INTERNATIONAL 9 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK PRESSURE TO ADJUST ASKING PRICES CANNOT BE IGNORED The film, Field of Dreams introduced us to the phrase, “If you build it, they will come.” At EWM, taking note of that philosophy, we believe the mantra for our market in 2017 will be, “If you price it correctly, buyers will come.”

While appropriate pricing is achieved on a case-by-case basis, our metrics reveal that almost 40% of all sales during 2016 in the $1 million-plus residential real estate market have realized a reduction of almost 14% from original asking prices.

To that end, we have no doubt that a great driver of residential real estate sales in 2017 will be appropriate pricing.

To that point, one of the metrics we utilize in this report is our perspective on the industry’s traditional Pricing Impacts Visibility Pyramid (see graphic). It reveals that in a market where price is the driver – in other words, a buyer’s market – the initial asking price is an absolutely crucial component of the marketing process.

As an example, let’s take a listing with a true market value of approximately $2 million. At that “appropriate” price, we estimate that the residence will have a 60% rate of visibility among buyers who are motivated to purchase that particular type of single-family home or condo. Increase the asking price to $2.5 million (as some sellers might be inclined to do, just to test the waters), and you reduce the percentage of potential buyers viewing the listing to only 30%. Raise the asking price to $3.0 million, and only 10% of motivated buyers will consider

PRICE TOO HIGH the listing.

Conversely, lower the asking price of a properly priced $2 million residence to $1.9 million, and the

ABOVE MARKET VALUE RANGE average percentage of potential buyers viewing the listing increases to 75%. Want to price it to sell quickly? Lower the asking price to $1.7 PRICE NEEDS ADJUSTMENT million and 90% of motivated buyers are estimated to view it.

MARKET VALUE RANGE The message is clear: proper pricing is key. The money is out there…buyers are just waiting for the right price. REASONABLY PRICED Pricing is the most critical marketing tool when selling a home. Setting a realistic market value price on a property on the first day will generate a COMPETITIVELY PRICED faster sale.

Remember, there is BELOW MARKET VALUE RANGE only one chance to make a first impression on the QUICK-SALE PRICED market.

PRICING DIRECTLY IMPACTS HOW MANY BUYERS WILL CONSIDER YOUR PROPERTY

EWM REALTY INTERNATIONAL 11 BRICKELL AREA

THE UNDER $300,000 MARKET GENERAL MARKET OVERVIEW

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK LARGEST AMOUNT OF SALES ARE IN THE LOWER TIER OF THE MARKET

The high-end market generates a great deal of attention inventory, leaving available inventory levels in this price in South Florida, but the reality is that the brunt of the point at 2 months. Noting that a ‘healthy market’ is 6-9 inventory and sales are in the $300,000 and under market. months, this is clearly a challenging situation, particularly As of December 2016, for example, 29% of Miami-Dade for first-time homebuyers. County’s overall inventory of single-family homes and condominiums were within this price range…comprising In Broward County, the situation is even more hampered, 60% of all sales. with available inventory levels for $300,000 and under single-family homes at slightly under 2 months. Broward In Broward County, this indicator is all the more saw a marked decrease in inventory in this price point pronounced, with the $300,000 and under market year-over-year, with inventory shrinking 36%. accounting for 51% of the inventory of single-family homes and condominiums, and a staggering 67% of all sales. In the $300,000 and under condominium market in Miami- Dade, inventory increased 13%, while sales decreased As of December 2016, the overall $300,000 and under 15%. Months of available inventory are 6 months. inventory of single-family homes in Miami-Dade – already In Broward County, condominium inventory decreased quite depleted – shrunk an additional 22%. Total sales 6% in that price point, while sales decreased 4%, leaving were understandably down to match the reduced months of available inventory at 5.

12 2017 REAL ESTATE OUTLOOK THE UNDER $300,000 MARKET GENERAL MARKET OVERVIEW

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

48% 45% OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 506/PER MONTH It’s The #1 Metric in 539/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 1% 12.8% 23% 9% 2.2 MONTHS $222,667 2.0 MONTHS $214,667 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 1,113 UNITS 1,059 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

72% 87% OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 744/PER MONTH 1.045/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 39% 10 % 4% 12.6% 6.6 MONTHS $168,000 4.9 MONTHS $130,667 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 4,914 UNITS 5,120 UNITS

MONTHS OF SUPPLY INDICATOR (UNDER $1 MILLION) BELOW 6 MONTHS · SELLERS’ MARKET 6-9 MONTHS · OPTIMUM SUPPLY OVER 9 MONTHS · BUYERS’ MARKET THE $300,000 TO $999,999 MARKET GENERAL MARKET OVERVIEW

231 SALAMANCA AVE, CORAL GABLES $749,000

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK CONTINUED EQUILIBRIUM THE $300,000 TO $999,999 PRICE POINT

The single-family home segments within the $300,000 to in demand in single-family homes within this price point. $999,999 price range in Miami-Dade and Broward Counties have continued within the optimum 6-9 months of available In Miami-Dade, condominium inventory within this price inventory range, with both inventory levels and sales point increased 18% year-over-year, while sales decreased increasing year-over-year from December 2015 to December 18%, increasing available months of supply to 26 months. 2106. Broward’s supply actually stands at 4 months. In Broward, condominium inventory in this price point increased 19%, and sales increased 2%. Months of available In Miami-Dade, single-family home inventory in that range inventory increased to 14 months. increased 20%, but sales also increased 16%, keeping existing inventory levels at a supply of 7 months. There are a number of new developments at, or near- completion—particularly in Miami-Dade’s Brickell/ A price range in which both inventory and sales grew during downtown corridor, with a significant volume of units 2016 was rare, as most segments saw increases in inventory within this price point—so we anticipate that condominium with decreases in sales. inventory will continue to increase into 2017. This price range just below $1 million has become a “sweet spot” for In Broward’s single-family home market in the $300,000 to single-family home buyers within all South Florida markets, $999,999 price range, inventory increased slightly – by 3%— where a growing number of young professionals and empty while sales increased by 11%. With 4 months of available nesters are finding home sizes and financial costs to be a inventory on the market, Broward is experiencing a shortage good balance.

14 2017 REAL ESTATE OUTLOOK THE $300,000 TO $999,999 MARKET GENERAL MARKET OVERVIEW

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

46% 52% OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 491/PER MONTH It’s The #1 Metric in 623/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 2% 0.9 % 1% 2.1% 6.8 MONTHS $393,333 4.1 MONTHS $405,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 3,349 UNITS 2,556 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

24% 12 % OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 250/PER MONTH 140/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 54% 0.4% 22% 4.7% 28.1 MONTHS $420,667 15.2 MONTHS $380,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 7,027 UNITS 2,134 UNITS

MONTHS OF SUPPLY INDICATOR (UNDER $1 MILLION) BELOW 6 MONTHS · SELLERS’ MARKET 6-9 MONTHS · OPTIMUM SUPPLY OVER 9 MONTHS · BUYERS’ MARKET 20 TAHITI BEACH ISLAND $21,990,000

THE LUXURY MARKET PROPERTIES IN EXCESS OF $1 MILLION

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK LUXURY SNAPSHOT

It’s always easier to look back in time to report actual In Broward, 2% of all MLS sales in 2015 were priced past sales activity than to predict future sales. In looking greater than $1 million. These sales represented 14% back over a year ago, it’s clearly evident today that the of the total dollars flowing through the MLS. The luxury market in South Florida began to retreat in August percentages for 2016 were 2% and 13%, respectively. of 2015. Total sales of single-family homes and condos in Miami-Dade priced in excess of $1 million saw a 24% It’s encouraging that many potential luxury buyers decrease in average monthly luxury sales during the last have resumed their searches for properties since the 5 months of 2015 compared with the first 7 months of presidential election, and are currently back in the market 2015. The number of actual unit sales began dropping looking at homes again, after waiting on the sidelines for in the last half of 2015 (from an average of 179 units/mo. these past 16 to 17 months. in the first 7 months of 2015 to an average of 136 units/ mo. over the last 5 months of 2015) and sales remained Another positive sign from 2016 was a growing number at the reduced average monthly level of 136 units/month of sellers making adjustments to their asking prices. throughout 2016. More than one-third of all sales in the million-dollar-plus category over the past six months have reflected price While combined single-family and condo luxury sales in reductions averaging more than 14% from their original Broward also saw a reduction in units sold after August, listing price. 2015, the percentage decrease through 2016 (15%) was less than the 24% decrease seen in Miami-Dade. Lastly, a few South American currencies strengthened against the U.S. Dollar during Q4 2016, which provides a In 2015, 6% of all MLS sales in Miami-Dade were priced little greater buying power for homes in South Florida. in excess of $1 million. This 6% represented 36% of the total dollars sold through the MLS that year. In 2016, 6% of all MLS sales were priced in excess of $1 million, totaling 33% of total MLS dollars.

16 2017 REAL ESTATE OUTLOOK THE LUXURY MARKET PROPERTIES IN EXCESS OF $1 MILLION

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

6.2% 3.5% OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 65/PER MONTH It’s The #1 Metric in 42/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 19% 6.1% 31% 0.5% 25.9 MONTHS $1,588,333 21.8 MONTHS $1,436,333 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 1,673 UNITS 921 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

4.5% 1. 2 % OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 47/PER MONTH 14/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 69% 0.2% 34% 7.6% 54.6 MONTHS $1,546,000 29.7 MONTHS $1,323,333 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 2,549 UNITS 426 UNITS

MONTHS OF SUPPLY INDICATOR (OVER $1 MILLION) BELOW 12 MONTHS · SELLERS’ MARKET 12-18 MONTHS · OPTIMUM SUPPLY OVER 18 MONTHS · BUYERS’ MARKET 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK A DIVERGING MARKET THE $1 MILLION TO $1.999 MILLION MARKET $1 MILLION TO $1.999 MILLION GENERAL MARKET OVERVIEW

5660 COLLINS AVE #9B, MIAMI BEACH $1,680,000

It is within this price range that Miami-Dade and Broward decreased 7%. There are now 20 months of supply within Counties begin to dramatically diverge in the ratio of the single-family home market in this price point. available single-family homes to condominiums. In Broward, which has approximately one-third the In Miami-Dade, condominium supply in this price range is inventory of Miami-Dade in this price point (and single- almost twice that of single-family homes; while in Broward, family homes vastly outnumber condominiums), the it is almost the exact opposite, with many more single- changes have not been as dramatic; but nonetheless, family homes in this price range than condominiums. inventory has increased and sales have decreased. As of December 2016, single-family home inventory in Broward In any case, both Counties have seen an increase in increased 16%, while condominium inventory increased supply and a reduction in sales for both condominiums 22%. and single-family homes. There are now 17 months of single-family home In Miami-Dade, condominium inventory in this price range inventory in this price range, and 24 months of increased 22% year-over-year, while sales dropped 21%, condominium supply. creating a 47-month supply. This is one of the key ranges where sellers will need to address price adjustments in While the number of months’ supply has increased order to increase demand. sharply for single-family homes valued between $1 million and $2 million in Broward County, the distribution of the Single-family homes in this price range have also seen inventory across the County varies, still providing pockets significant increases in supply – 24% – while sales have of balanced supply.

18 2017 REAL ESTATE OUTLOOK THE $1 MILLION TO $1.999 MILLION MARKET GENERAL MARKET OVERVIEW

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

3.8 % 2.5% OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 40/PER MONTH It’s The #1 Metric in 30/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 28% 2.5 % 45% 4.6% 19.8 MONTHS $1,266,667 16.6 MONTHS $1,295,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 791 UNITS 492 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

2.8% 1.1% OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 29/PER MONTH 13/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 80% 0.2 % 13% 0.8% 46.9 MONTHS $1,300,333 23.5 MONTHS $1,315,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 1,376 UNITS 306 UNITS

MONTHS OF SUPPLY INDICATOR (OVER $1 MILLION) BELOW 12 MONTHS · SELLERS’ MARKET 12-18 MONTHS · OPTIMUM SUPPLY OVER 18 MONTHS · BUYERS’ MARKET 12351 ROCK GARDEN LANE, PINECREST $3,599,000 THE $2 MILLION TO $4.999 MILLION MARKET GENERAL MARKET OVERVIEW

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK INVENTORY CONTINUES TO CLIMB $2 MILLION TO $4.999 MILLION

At the $2 million and higher price point, in both Miami- particularly among condominiums. Miami-Dade 2016 Dade and Broward Counties, inventories have continued single-family and condo sales in this price range declined to see increases. 14% and 24%, respectively, compared to 2015.

Miami-Dade—which has almost four times the total In Broward, there is a 32-month supply of single-family inventory of Broward in this price point—has 27 months homes – which is even harder to gauge in the condominium of supply of single-family homes, and 58 months of market, as there were only 4 condo sales in the last quarter condominium supply. While available months of supply at of 2016 compared to 11 sales in the last quarter of 2015. this price point are expected to be higher than the overall The slowdown in the over $2 million condo sales has real estate market, these are still very high numbers— resulted in a current inventory supply of 76 months.

20 2017 REAL ESTATE OUTLOOK THE $2 MILLION TO $4.999 MILLION MARKET GENERAL MARKET OVERVIEW

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

2.1% 0.9 % OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 22/PER MONTH It’s The #1 Metric in 10/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 1% 0.5 % 1% 0.7% 27.1 MONTHS $2,795,000 32.2 MONTHS $2,525,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 587 UNITS 333 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

1. 4 % 0.1% OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 15/PER MONTH 1/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 33% 10.5% 239% 11.6% 58.3 MONTHS $2,558,333 75.8 MONTHS $2,575,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 855 UNITS 101 UNITS

MONTHS OF SUPPLY INDICATOR (OVER $1 MILLION) BELOW 12 MONTHS · SELLERS’ MARKET 12-18 MONTHS · OPTIMUM SUPPLY OVER 18 MONTHS · BUYERS’ MARKET 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK THE IMPACT ON THE ULTRA HIGH-END THE $5 MILLION & HIGHER MARKET $5 MILLION AND HIGHER GENERAL MARKET OVERVIEW

6466 N BAY ROAD, MIAMI BEACH $25,500,000

The ultra-high-end market of properties priced in excess County priced in the $5 million+ range fared better than of $5 million has been dramatically impacted by the steep homes of that value in Miami-Dade County. Condo sales increase in inventories and decrease in sales over the past in Broward were virtually non-existent, where there was 2 years, leading up to the start of 2017. only one unit sold in 2016 in excess of $5 million. With 19 condos currently available for sale in Broward, there is a In Miami-Dade County, the inventory of single-family 19-year supply! homes priced in excess of $5 million increased 32% over the past 2 years, with the total available number of homes After monitoring the level of activity in both Counties for for sale on December 31, 2016 equaling 295 properties. the past 24 months, it is clearly apparent that the sales Sales for Q4 2016 equaled 8 properties, compared with 15 that have been happening are those properties which sales during the same period in 2015, a decrease in sales are well located and well priced. Again, the theme for year-over-year of 47%. With an average of 2.67 sales per selling in 2017 will be appropriate pricing. There are more month, the remaining months of supply for single-family potential buyers for this uber price range than is realized; homes equaled 9 years. In comparison, condo inventory however, these buyers are often second, third or fourth- in Miami-Dade priced over $5 million averaged 2 sales per home buyers and are motivated more by value than the month during Q4 2016, yielding a supply of 9 years also. need to purchase quickly.

While still over-supplied, the 48 months of available inventory for single-family homes for sale in Broward

22 2017 REAL ESTATE OUTLOOK THE $5 MILLION & HIGHER MARKET GENERAL MARKET OVERVIEW

MIAMI-DADE COUNTY BROWARD COUNTY SINGLE-FAMILY HOMES SINGLE-FAMILY HOMES

0.3% 0.2% OF TOTAL SINGLE OF TOTAL SINGLE FAMILY SALES IN MLS Monitor This Number FAMILY SALES IN MLS 1/1/2016 TO 12/31/2016 Throughout 2017. 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 3/PER MONTH It’s The #1 Metric in 2/PER MONTH Real Estate.

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 107% 2 7.9 % 32% 15.6% 110.6 MONTHS $5,883,333 48 MONTHS $7,765,000 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015

INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES INVENTORY ON 12/31/2016 SINGLE-FAMILY HOMES 295 UNITS 96 UNITS

MIAMI-DADE COUNTY BROWARD COUNTY CONDOMINIUMS CONDOMINIUMS

0.3% 0.0% OF TOTAL CONDO OF TOTAL CONDO SALES IN MLS SALES IN MLS 1/1/2016 TO 12/31/2016 1/1/2016 TO 12/31/2016 Q4 2016 AVERAGE # SALES Q4 2016 AVERAGE # SALES 3/PER MONTH 0/PER MONTH

SUPPLY MEDIAN PRICE SUPPLY MEDIAN PRICE 124% 9.9 % 36% 0% 106 MONTHS $4,441,667 228 MONTHS NO SALES Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 Q4 2016 VS. Q4 2015 REPORTED Q4 2016

INVENTORY ON 12/31/2016 CONDOMINIUMS INVENTORY ON 12/31/2016 CONDOMINIUMS 318 UNITS 19 UNITS

MONTHS OF SUPPLY INDICATOR (OVER $1 MILLION) BELOW 12 MONTHS · SELLERS’ MARKET 12-18 MONTHS · OPTIMUM SUPPLY OVER 18 MONTHS · BUYERS’ MARKET MONTE CARLO, MONACO

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK THE FOREIGN BUYER ON THE SIDELINES

While we have noted within this report that there have Argentina and Venezuela – key buyers – have been been positive signs over these past few months relataing affected the most. For example, a South Florida to the strengthening of some foreign currencies—hopefully home or condo an Argentinian could have purchased bringing additional international buyers to South Florida in in 2007 for $1 million would cost more than $4.5 2017 and 2018—the reality is that it will take time to resolve million in equivalent Argentine pesos today. the complexities of these currency issues. Following that example, when comparing a home or As in previous reports, EWM’s research team has compared condo purchase in 2007 or 2016 to a purchase in 2017, how the currency rates have impacted foreign buyers the exchange rate differences can cast a very different from 12 global markets that are key to South Florida. The light on each transaction. study has revealed that, when comparing December 2007 to December 2016, 10 of the 12 currencies have been moderately to severely impacted.

24 2017 REAL ESTATE OUTLOOK % MOREEXPENSIVE % MOREEXPENSIVE % LESSEXPENSIVE % LESSEXPENSIVE EFFECT OFCURRENCYEXCHANGERATES ONFOREIGNBUYERSINSOUTHFLORIDA HOW MUCHMOREORLESSEXPENSIVESOUTHFLORIDAREALESTATE ISBASEDONTHEIRHOMECOUNTRY CURRENCY

ARGENTINA ARGENTINA 23.9% 403.4%

CANADA CANADA 3.1% 36.9%

COLOMBIA DECEMBER 2007VS.2016 COLOMBIA DECEMBER 2015VS.2016 4.8% 49.6%

EUROPEAN UNION EUROPEAN UNION 3.7% 39.8%

MEXICO MEXICO 90.0%

19.6% (PAST YEAR) (9 YEARS)

PERÚ PERÚ 0.3% 13.9%

BRAZIL BRAZIL 17.8% 79.5%

CHINA CHINA 7.0% 5%

GREAT BRITAIN GREAT BRITAIN 20.0% 45.7%

JAPAN JAPAN 2.8% 4.5%

RUSSIA RUSSIA 16.4% 149.5%

VENEZUELA VENEZUELA 58.1% 365.4% 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK THE VALUE OF LUXURY HOW SOUTH FLORIDA COMPARES

521 T $ /SF /SF UR 348 F 2, K $ N N $515/SF A O R O D T F N N O O R L O

T

0 $2, 89/S RK F O Y W E N 7/SF 14 1, $ IS R

A

P

LE $ DA 41 I BEA R 0 AM C E / I H S M D F $ 7 U

6

A

0

L

/

.

S

T F

F ,349/SF $4 LO R A 75/SF C $4 E I T

M N

A O I

M M

VALUE OF A 1,291 SF URBAN CONDO IN USD Monte Carlo $5,615,148 Hong Kong $3,064,534 $405/S LO F U London $3,031,088 A P New York $2,696,444 O Singapore $1,731,064 A S Tokyo $1,658,142 Moscow $1,496,548 Paris $1,480,531 Geneva $1,263,729 Sydney $1,225,166 Beijing $1,028,549 Stockholm $1,027,525 Miami Beach $981,160 Rome $800,992 Frankfurt $672,097 Toronto $664,935 Miami $613,225 Fort Lauderdale $529,310 Sao Paulo $522,855

26 2017 REAL ESTATE OUTLOOK WORLDWIDE AVERAGE SQUARE FOOT PRICES IN US DOLLARS Urban Apartment: 120 m2 (1,291 SF) Based On Currency Exchange Rates As of December 31, 2016

OCKHO ST LM $ 7 9 6 / S

F

OSCO M W $1 ,1 5 9 / S

F

97/SF $7 TOKYO G $ IN 1 J ,2 I 8 E 4 B / S

F NEVA $ E 97 G 9 / S

F

ROME SINGAP $ OR 62 E 0 $ / 1 S , F 3 4 1 / S

F

/SF SY ,374 DNE $2 Y $9 G 4 N 9 / O S K F

G

N

O H

Sources: www.globalpropertyguide.com, Southeast Florida Regional MLS. Data based on: 2014 and 2015 average per square meter (sq. m.) prices in US$ of 120-sq. m. apartments located in the centre of the most important city of each country, either the: Administrative capital and/or Financial capital and/or the centre of the rental market EWM REALTY INTERNATIONAL 27 NEW YORK’S CENTRAL PARK

2017 SOUTH FLORIDA REAL ESTATE OUTLOOK THE DOMESTIC BUYER’S INTEREST IN SOUTH FLORIDA GROWS

In 2016, the balance between the domestic buyer and the The second draw is transportation. The Brightline will international buyer changed due to wavering economic revolutionize regional transit in South and Central Florida, conditions in much of the world. As a result, a greater and our airports and seaports give residents access to portion of the total sales in South Florida has moved to hundreds of destinations across the globe, all within hours. the domestic buyer side of the scale. Lastly, it’s the diversity and stability of South Florida’s So what draws them here? The first and primary reason is people, places, and cultural offerings....such as our our weather. South Florida’s temperatures live in a narrow museums, fine art and performing arts, as well as our zone, with average monthly winter lows in the low 60’s and sports and entertainment venues. An added bonus is average summer highs in the low 90 degrees. This climate South Florida’s palatable housing prices when compared makes for great year-round beach weather, a refreshing to other global cities, and a growing employment center reprieve for northerners. for tech, healthcare, trade and logistics and tourism... making South Florida a place of economic opportunity, as well as a fun place to live and visit!

28 2017 REAL ESTATE OUTLOOK

U.S. “NET” PERSON GAINS (LOSSES) PER DAY BY STATE PER U.S. CENSUS BUREAU ESTIMATES AS OF JULY 1, 2016

ME +6 WA +350

MT +29 ND +3 MN +103

+189 OR NY -5 WI +30 +83 SD +21 ID MI +29 WY -3 PA -21 CT -23 IA +35 +25 DC +30 NE +37 OH +154 +56 +22 NV IL -103 ID DE UT +166 WV -27 MA +75 VA +121 CO +251 MD +59 +2 MO +46 KY +34 CA +702 KS NH +13 NC +306 RI +2

TN +154

-4 SC +182 VT OK +44 AZ +311 AR +28 NM +2 GA +304 +9 AL +26 HI MS -2

TX +1,186 LA +35

AK +11 FL +1,007

NET GAINS (LOSSES) PER DAY IN PERSONS

GAIN OF 1,000+ 250-499

750-999 1-249 NO 2017 STATE INCOME TAX FACT Only 7 U.S. States Do Not Have A State Income Tax. The Remaining 44 500-749 LOSS OF 1-150 States (Including Washington D.C.) Have A Graduated State Income Tax, With The Highest Bracket Ranging From 3.07% To 13.30%. EWM REALTY INTERNATIONAL 29 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK MARKET BREAKDOWN BY CITY MIAMI-DADE COUNTY JANUARY-DECEMBER 2016 VS. JANUARY-DECEMBER 2015

SINGLE-FAMILY HOMES CONDOMINIUMS 2016 % MEDIAN % CURRENT % MONTHS % 2016 % MEDIAN % CURRENT % MONTHS % SALES CHANGE PRICE CHANGE INVENTORY CHANGE OF SUPPLY CHANGE SALES CHANGE PRICE CHANGE INVENTORY CHANGE OF SUPPLY CHANGE Aventura (MC 28) 22 -18.50% $1,000 25.00% 33 26.90% 17.9 64.20% 953 -17.40% $310 1.60% 1,525 14.90% 18.7 50.80% Bal Harbour (MC 12) 37 -26.00% $327 12.80% 28 -9.70% 10.1 48.50% 142 -26.40% $432 -28.00% 257 23.00% 19.6 60.70% Bay Harbor Islands (MC 13) 19 72.70% $1,575 -4.50% 19 -9.50% 14.8 -11.40% 85 -34.10% $285 0.00% 148 42.30% 19.7 140.20% Biscayne Park (MC 17) 40 -25.90% $399 -13.30% 32 113.30% 8.5 150.00% 0 0 0 0 0 -100.00% 0 0 Coral Gables (MC 03) 0 -1.40% $900 5.90% 361 20.30% 9.1 24.70% 266 -2.20% $350 -2.80% 194 17.60% 8.5 14.90% Cutler Bay (MC 36) 553 -1.30% $278 9.40% 141 -12.40% 3.2 -8.60% 231 -9.10% $172 18.60% 75 29.30% 3.4 -5.60% Doral (MC 35) 178 -12.70% $432 -5.10% 355 20.30% 23.7 55.90% 533 -18.60% $248 3.30% 581 20.50% 12.4 45.90% El Portal (MC 18) 51 -7.30% $370 4.20% 21 -16.00% 5.3 65.60% 16 -20.00% $106 17.80% 6 0.00% 3 -36.20% Florida City (MC 16) 44 -30.20% $121 40.70% 16 -23.80% 4.8 11.60% 9 -25.00% $125 28.90% 2 -33.30% 4.7 -39.70% Golden Beach (MC 19) 9 -30.80% $4,550 104.50% 40 33.30% 53.9 92.50% 0 -100.00% 0 -100.00% 1 0 0 -100.00% Hialeah (MC 04) 472 1.50% $260 13.00% 139 40.40% 3.1 14.80% 517 -12.50% $132 17.90% 143 6.70% 3.1 -6.10% Hialeah Gardens (MC 27) 66 22.20% $262 11.00% 10 -28.60% 2.7 -3.60% 61 -29.10% $156 35.70% 17 -10.50% 4.5 40.60% Homestead (MC 10) 653 10.10% $215 12.00% 168 -3.40% 3 -14.30% 585 -3.50% $115 21.10% 184 -13.20% 4 -16.70% Indian Creek (MC 21) 7 16.70% $215 52.50% 2 -50.00% 6 -36.80% 4 -73.30% $156 -3.70% 2 -60.00% 7.5 63.00% Islandia (MC 29) 2 100.00% $300 10.70% 3 N/A 12 100.00% 1 0.00% $270 321.90% 2 100.00% 18 260.00% Key Biscayne (MC 24) 35 -48.50% $2,950 6.30% 107 17.60% 35.6 134.20% 163 -31.80% $810 -11.00% 278 47.90% 18.6 116.30% Medley (MC 22) 1 -92.30% $1,190 498.00% 2 -50.00% 20 700.00% 10 -37.50% $159 28.20% 20 -9.10% 21.4 67.20% Miami (MC 01) 1,186 -4.70% $320 12.30% 728 20.30% 7 29.60% 2,330 -15.30% $310 -5.50% 3,997 25.00% 19.5 50.00% Miami Beach (MC 02) 205 -22.30% $1,580 13.70% 414 15.30% 23.9 79.70% 1,787 -14.30% $342 2.10% 2,826 23.80% 17.5 57.70% Miami Gardens (MC 34) 804 3.50% $182 23.00% 148 15.60% 1.7 -32.00% 161 -11.50% $89 30.90% 48 9.10% 4 5.30% Miami Lakes (MC 32) 168 -5.10% $437 12.90% 101 16.10% 6.2 17.00% 137 -19.90% $228 3.20% 37 -42.20% 4 -13.00% Miami Shores (MC 11) 181 -13.40% $505 8.60% 111 20.70% 7.1 57.80% 23 -37.80% $153 -8.90% 14 -12.50% 7.3 46.00% Miami Springs (MC 05) 118 0.90% $372 14.50% 44 -4.30% 4.6 21.10% 7 -63.20% $130 32.70% 7 16.70% 10.3 212.10% Miami-Dade Uninc. (MC 30) 6,985 -6.90% $295 13.50% 2,346 0.60% 4.1 5.10% 4,597 -14.00% $160 14.30% 1,536 6.00% 3.8 2.70% North Bay Village (MC 23) 23 15.00% $550 9.60% 19 26.70% 10 38.90% 164 -22.30% $230 2.70% 250 15.70% 17.2 53.60% North Miami (MC 06) 312 6.80% $229 39.60% 167 46.50% 5.8 48.70% 302 20.80% $125 9.60% 206 42.10% 7.8 11.40% North Miami Beach (MC 07) 224 10.90% $205 19.90% 84 2.40% 4.5 2.30% 190 -3.10% $150 35.10% 272 62.90% 16 100.00% Opa-Locka (MC 08) 67 9.80% $148 45.10% 25 56.30% 3.5 9.40% 34 21.40% $105 36.40% 25 400.00% 8.9 196.70% Palmetto Bay (MC 33) 317 -5.40% $528 8.00% 156 23.80% 6.1 38.60% 30 -14.30% $129 20.60% 14 -17.60% 5.2 18.20% Pinecrest (MC 20) 228 2.70% $1,047 8.50% 207 31.80% 11.5 33.70% 35 -23.90% $184 18.70% 10 -52.40% 6 5.30% South Miami (MC 09) 106 -7.00% $510 2.00% 56 5.70% 6.1 24.50% 28 -17.60% $200 -10.30% 17 13.30% 7.1 36.50% Sunny Isles (MC 31) 22 -38.90% $333 -55.60% 52 18.20% 25.8 145.70% 576 -24.90% $380 8.00% 1,382 23.40% 27.9 87.20% Surfside (MC 14) 38 -35.60% $687 1.80% 45 15.40% 13.3 155.80% 44 -43.60% $632 31.70% 104 35.10% 23.6 148.40% Sweetwater (MC 25) 30 15.40% $280 9.80% 7 -22.20% 2.6 -18.80% 44 15.80% $155 14.00% 15 7.10% 4.3 -6.50% Virginia Gardens (MC 26) 13 8.30% $285 11.80% 6 -25.00% 4.5 9.80% 6 -45.50% $132 -27.10% 4 -50.00% 10.7 64.60% West Miami (MC 15) 40 -14.90% $329 18.80% 8 0.00% 3.7 48.00% 5 66.70% $145 7.40% 4 33.30% 7.4 -17.80%

Median Price Median Price Shown In (S,000’s) Shown In (S,000’s) 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK MARKET BREAKDOWN BY CITY BROWARD COUNTY JANUARY-DECEMBER 2016 VS. JANUARY-DECEMBER 2015

SINGLE-FAMILY HOMES CONDOMINIUMS 2016 % MEDIAN % CURRENT % MONTHS % 2016 % MEDIAN % CURRENT % MONTHS % SALES CHANGE PRICE CHANGE INVENTORY CHANGE OF SUPPLY CHANGE SALES CHANGE PRICE CHANGE INVENTORY CHANGE OF SUPPLY CHANGE Davie 580 -2.80% $400 2.60% 194 26.90% 17.9 -4.00% 511 3.00% $150 11.10% 119 9.20% 2.4 -7.70% Everglades 2,678 5.80% $347 6.80% 540 -9.70% 10.1 -19.50% 1,399 -4.50% $100 14.90% 308 -26.30% 3.1 -27.90% Ft Lauderdale Beach 104 -1.00% $1,100 4.80% 113 -9.50% 14.8 36.10% 762 -12.60% $354 7.30% 712 12.50% 10.8 40.30% Ft Lauderdale North East 1,014 -4.60% $400 5.30% 462 113.30% 8.5 16.10% 911 -7.60% $195 10.80% 496 7.80% 6.3 16.70% Ft Lauderdale North West 823 0.10% $169 20.70% 193 39.50% 11.1 -31.30% 560 1.80% $117 18.20% 216 -2.70% 4.8 -14.30% Ft Lauderdale South East 140 -6.70% $1,515 16.50% 198 20.30% 9.1 8.80% 310 -13.20% $390 0.00% 321 41.40% 11.1 52.10% Ft Lauderdale South West 621 6.00% $241 5.20% 180 -12.40% 3.2 -15.90% 159 -14.10% $267 10.80% 79 12.90% 6.5 44.40% Hollywood Central 1,096 1.20% $238 19.00% 261 20.30% 23.7 -12.10% 617 -1.10% $125 14.70% 232 -8.30% 5.1 -5.60% Hollywood Central West 1,304 -4.80% $339 5.30% 222 -16.00% 5.3 -16.50% 1,207 -4.80% $139 6.90% 354 0.60% 3.7 8.80% Hollywood East 671 -7.60% $250 11.10% 317 -23.80% 4.8 0.00% 1,525 -10.60% $206 0.00% 1,754 21.00% 13.5 50.00% Hollywood Everglades 0 -100.00% $0 -100.00% 0 33.30% 53.9 N/A 19 72.70% $80 14.30% 1 -50.00% 0.7 -70.80% Hollywood North West 611 2.50% $415 4.50% 162 40.40% 3.1 -21.70% 115 18.60% $247 8.30% 12 -69.20% 2.4 -31.40% Hollywood South West 1,141 0.30% $330 3.10% 249 -28.60% 2.7 -13.80% 541 1.50% $202 12.20% 128 -20.00% 3 -18.90% Intracoastal to US1 364 -9.00% $490 -2.00% 221 -3.40% 3 10.00% 232 -1.30% $147 1.40% 117 4.50% 6.3 14.50% North Broward Dixie Hwy to 481 -2.80% $175 16.70% 106 -50.00% 6 -22.60% 1,478 6.10% $106 8.20% 666 -10.10% 6 3.40% Turnpike N Broward Ocean to Intracoastal 56 7.70% $557 14.60% 41 N/A 12 -14.60% 555 -8.00% $300 5.30% 483 9.50% 10.1 34.70% N Broward Turnpike to 441 444 1.80% $301 6.40% 88 17.60% 35.6 -12.00% 806 -3.50% $117 11.40% 225 -1.30% 3.5 -2.80% North Broward US1 to Dixie Hwy 429 -6.10% $225 3.70% 114 -50.00% 20 -0.90% 292 -7.30% $115 9.50% 111 -21.30% 5.6 12.00% Plantation 1,122 7.00% $345 6.20% 296 20.30% 7 -4.20% 724 -4.00% $170 18.10% 219 -6.80% 3.8 -9.50% Tamarac/Sunrise/Lauderhill 1,701 1.90% $220 16.40% 311 15.30% 23.9 -15.90% 2,806 -0.70% $76 10.10% 1,002 -15.70% 4.5 -16.70% Weston 833 -4.00% $477 6.20% 267 15.60% 1.7 -2.90% 401 -3.10% $215 7.50% 124 -4.60% 3.8 -11.60%

Median Price Median Price Shown In (S,000’s) Shown In (S,000’s) FORT LAUDERDALE BEACH AT SUNRISE

32 2017 REAL ESTATE OUTLOOK 2017 SOUTH FLORIDA REAL ESTATE OUTLOOK CONFIDENCE IN THE OVERALL MARKET

The State of Florida is recognized world-wide today as a young and exciting place to invest assets and personal futures. Florida’s population in 1980 was 10 million permanent residents. Today, it’s rapidly moving toward 21 million. Florida is currently the third most populous State in the nation, following only California (39 million) and Texas (28 million). 27% of the total permanent residents of the United States now live in just these 3 states!

South Florida, with Miami as the globally recognized brand, drives the discussion and energy throughout the region of the Americas. We are fortunate to live and work in a place which has been blessed with a wonderful climate and physical beauty... and most of all -- a diverse cultural base -- which today allows our residents and frequent visitors to experience the benefits of a global lifestyle...all from within one geographic location, which we are fortunate to call ‘home’.

Through the combined hard work and passionate efforts of our fellow South Floridians over these past two decades, our region is now viewed alongside other great cities and regions of the world. While we have many reasons to feel proud of who we have become as a community, there are still many opportunties that lay ahead for us.

The foundation of any growing community is its real estate base…both residentially and commercially. It’s gratifying to witness the world’s approval of what we have conceived, designed and built together over these past short years. We have not only built tangible value for ourselves, but intangible value for our families and others whom will come behind us. The future ahead of us is filled with exciting opportunities.

If we collectively build it, they will come.....

EWM REALTY INTERNATIONAL 33 INTERACTIVE READ IT. WATCH IT. SHARE IT.

www.EWMInsight.com POWER. PRESENCE. PRESTIGE.

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At 2017 Real Estate Market Outlook EWM Realty International ewm.com Brought South Florida’s Leaders Insight On REAL ESTATE · ECONOMICS · TRANSPORTATION

© 2016 EWM REALTY INTERNATIONAL. ALL RIGHTS RESERVED. THIS REPRESENTATION IS BASED ON HISTORICAL DATA SUPPLIED BY THE MIAMI ASSOCIATION OF REALTORS®, THE GREATER FORT AVAILABLE FOR DOWNLOAD ON THESE POPULAR STREAMING SERVICES LAUDERDALE ASSOCIATION OF REALTORS®, AND THE SOUTHEAST FLORIDA MLS. DATA SHOWN REFLECTS STATISTICS AND FIGURES FOR THE PERIOD BEGINNING JANUARY 1 2016 AND ENDING DECEMBER 31, ® 2016 FOR SINGLE-FAMILY AND CONDOMINIUM SALES IN MIAMI-DADE AND BROWARD COUNTIES. 34 2017 REAL ESTATE OUTLOOK