Mixed signals for Vero Beach real estate market in January 2017

The Vero Beach real estate market in January 2017 gave some mixed signals as the market activity increased but sale prices remained flat compared to last month and the same period in 2016. The real estate market on the mainland was again very active with slight increase in sale prices.

The real estate market activity in January 2017 for homes on the island, both single family and condos were slightly slower than the previous year. However as mortgage rate increases are looming, buyers rushed to close the deal as the pending sales average of sale increased by 15.5% compared to 2016, good news for the sellers and the market moving forward.

In January 2017 Vero Beach home sales increased slightly by 4.8% compared to the same period last year but decreased by 22% compared to December. Inventory remained at almost the same levels as in 2016. The lack of inventory in some desirable locations and price ranges continues to affect sales.

Vero Beach Real Estate Market Highlights – January 2017


While inventory is building up sales remained subdued this month, as the real estate market continues to soften in Vero Beach. Pending sales on the other hand increased compared to the same period in 2016 which brings hope that the market activity will accelerate during the rest of the traditionally strong winter season. The recent and pending increases in mortgage rates may encourage buyers to lock rates and expedite their purchases.

The real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland continue to stabilize but managed an 8% increase compared to the same period in 2016 as shown on the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the last 12 months.

Vero Beach Market Statistics January 2017 - Median of Sale Prices DATA SOURCE: MLS data as of 2/2/2017. Data believed to be accurate but not guaranteed.

Seller’s market continues for price ranges up to $250,000
(see more details in Vero Beach Mainland Real Estate Market Report January 2017).

In January 2017 the real estate market for condos on the island in Vero Beach got more active with increase in pending sales but 18.3% fewer sales than the same period in 2016. Sale prices continue to decline and decreased by 6.5% compared to the same period last year but stabilizing as shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.

Vero Beach Market Statistics - Island Condos Median Sale Prices January 2017 DATA SOURCE: MLS data as of 2/2/2017. Data believed to be accurate but not guaranteed.

However, seller’s market continues below $200,000, in $300,000 to $350,000 and in $400,000 to $500,000 price ranges as buyers still hunt for good deals
(see more details in Vero Beach Barrier Island Condos Real Estate Market Report January 2017).

Vero Beach Real Estate Market Analysis – January 2017


The real estate market for single family homes on the Vero Beach barrier island continue to show signs of softening as median of sale prices decreased by 3.5% compared to the same period last year, but stabilizing. Pending sales increased which is good news for the real estate market of single family homes on the island.

The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island the last 12 months.

Vero Beach Market Statistics - Island Single Family Median Sale Prices January 2017 DATA SOURCE: MLS data as of 2/2/2017. Data believed to be accurate but not guaranteed.

Demand for homes up to $450,000 is intact, however has been reduced for homes in price ranges that were previously in high demand
(see more details in Vero Beach Barrier Island Single Family Real Estate Market Report January 2017).

Overall Housing Market – January 2017


Mortgage rates have increased the last couple of months and increased by half a percentage point post elections. It is expected that the Fed will raise interest rates as the economy improving in 2017. However, the projections by the experts continue to show that rates will remain below 4.5% all the way to 2018 which is good news for buyers and sellers of Vero Beach real estate.

Housing Market Statistics - Mortgage Rates Forecast January 2017 DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – January 2017.

The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2016 to present and the projections all the way to 2018.

Housing Market Statistics - Existing Home Sales Forecast January 2017 DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – January 2017.

Existing homes sales have been flat the last few quarters. The projects by the experts on the market activity for existing homes shows steady activity the next few quarters throughout 2017 but they have changed to show some acceleration in 2018. The Vero Beach real estate market shows similar trend in all areas, but the market has soften lately and we need to see more data before we can make a prediction for rest of 2017.

The following chart shows that demand for new construction is intact and this trend continues into 2017 and 2018 with some projections showing a slight decrease in demand from previous estimates.

Housing Market Statistics - New Home Sales & Starts January 2017 DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – January 2017.

New construction in several communities on the mainland and luxury homes on the island in Vero Beach continues to provide more options to buyers..

Detailed Vero Beach Real Estate Market Reports are produced on a monthly basis. If you would like to receive real estate market reports of your area, Vero Beach Mainland or Vero Beach Barrier Island (single family homes or condos), fill in the request form below with your email address and specify the area of interest in the message box. These reports will be sent to your email the beginning of the each month with market statistics of the previous month.

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