REAL ESTATE REPORT- SPRING 2014

Volume 13, Number 2 Spring 2014 Florida Keys Real Estate Market Comparison: January March 2014 vs. 2013 *Source: Tri-Services Multiple Listing Service (MLS) Board Key Largo To Key West Upper Keys Middle Keys Lower Keys Key West All Areas ALL AREAS 2013 Green (+) Red (-) Lower Matecumbe to Key Largo 7 Mile Bridge to Long Key Bay Point to Big Pine Key West to Shark Key Keys-Wide Total Number of Sales as of 03/31/14: -8% Less 164 -14% Less 116 +20% More 118 -7% Less 173 -5% Less 571 599 Avg. Sales Price as of 03/31/14: +24% More $475K +22% More $431K +6% More $362K +18% More $594K +18% More $479K $405K $ Value of Sales as of 03/31/14: +13% More $77.9MM +5% More $50MM +28% More $42.8MM +9 More $102.8MM +12% More $273.6MM $244.2MM Sale Price to Original List Price as of 03/31/14: +12% More 89.99% +13% More 89.72% +11% More 89.23% +25% More 89.87% +15% More 89.70% 78.15% Sale Price to Final List Price as of 03/31/14: +2% More 93.32% +3% More 91.06% +7% More 93.48% -1% Less 93.41% +3% More 92.82% 90.27% Avg. Days to Sell as of 03/31/14: -28% Less 210 -3% Less 232 -29% Less 209 -41% Less 164 -26% Less 204 276 Pending Transacons as of 03/31/14 85 86 44 38 253 N/A Number of Properes Listed For Sale as of 03/31/14: -9% Less 877 -6% Less 547 -9% Less 566 +8% More 877 -4% Less 2,867 2,981 Avg. List Price Properes For Sale as of 03/31/14: +3% More $774K -9% Less $700K +24% More $628K -1% Less $783K +31% More $734K $714K Months of Inventory as of 03/31/14: No Change 16 +9% More 14 -25% Less 14 +16% More 15 No Change 15 15 KEYS-WIDE MARKET OVERVIEW The Sales of 571 properes is a decrease of -5% from the 599 for 2013. Nevertheless, with the excepon of 2013, the 2014 Q1 sales exceed those of every year dang to 2006 when the total was 403. The $479K Average Sale Price (ASP) increased +18% over the $405K for that period last year. For 2013, the ASP increased +8% aer having declined during the rst quarter year-to-year since 2007. The largest drop w as -32% in 2009 ($419K ) vs. 2008 ($618 K). The $479K ASP for 2013 is a reducon of -45% since the peak of $869K in 2006 and places the current ASP back to that of 2004. The Dollar Value of Sales (DVS) rose +12% to $273.6MM compared to $244.2MM for 2013 as a consequence of the +18% increase in average sales price, compensang for the -5% decrease in sales. The 2014 Q1 DVS is the highe st since 2006($341MM) with the Q1 peak occurrin g in 2005 with $584MM. 2009 had the lowest DVS, $138MM. Average Days to Sell (ADS) declined -26% to 204 days from the 276 as of March 31, 2013. (ADS is a measure of the number of days between the date the property was listed and the date the sale closed.) The Sale Price-to-Original List Price (OLP/SP) increased +15% to 89.70% from 78.15% during last year ’s Q1. (The OLP/SP compares t he sale price of the property to the list price of the property at the me it rst came on the market versus the list price at the me the contract was wrien, thereby providing a measure of the mismatch between many sellers ’ inial list price and the market price acceptable to buyers.) This rao will connue to increase as the market improves. The rst quarter nearly equaled the best the rao has been, 89.73%, which occurred in 1999. The lowest was 62.49% in 2009. The Sale Price-to-Final List Price (FLP/SP) of 92.82% is an increase of +3% from 90.27% in 2013. (The FLP/SP comp ares the sale price of the property to the list price of the property at the me the contract was wrien instead of the me the property was rst listed, and reects the average percentage of the nal listed price that buyers are paying for properes that have sold.) This rao will also connue to improve with the market. The peak for this rao was 94.85% in 2004 with the lowest, 87.10%, occurring in 2009. The margin between the OLP/SP (89.70%) and FLP/SP (92.82%) is 3.1%, which indicates, on average, a seller can ancipate price reducons during the term of the lisng of about 3% from their Original List Price to the Final List Price prior to receiving a b uyer ’s oer, a new low. The previous low, 7%, occurred during 2001 and 2005 with the largest reducon being 25% at the end of 2009. Addionally, sellers and buyers today can expect the contract price, on average, to be nearly-7% less than the Final List Price. From 2001 -2005, that average was -5% with the highest being -12.9% in 2009. The 2,867 Properes for Sale at the end of Q1 is -4% less than 2,981 on that date in 2013 and is a -44% reducon from the peak of 5,084 in March of 2007. This is the single most important measure of the connued improving market and we ancipate the decline to connue. (connued on page 4)

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REAL ESTATE REPORT- SPRING 2014