The Vero Beach real estate market action was anemic in October 2016 with drop in sales in all areas showing signs of market fatigue. Median of sale prices managed a slight increase of 1.7% compared to the same period in 2015.
In October 2016 Vero Beach home sales decreased by 19% compared to the same period last year, and 16.5% compared to September. Inventory remained virtually at the same levels as in 2015. The lack of inventory in some desirable locations and price ranges continues to affect sales.
Vero Beach Real Estate Market Highlights – October 2016
Evidence that the real estate market continues to soften in Vero Beach is confirmed by the Pending sales which continue to lag. On the positive side, the Days on the Market (DOM) is declining indicating that buyers are rushing to buy as the mortgage rates are about to rise in the coming months.
The real estate market activity continues to vary by location and price range. Sale prices of homes in Vero Beach mainland rose slightly by only 1.4% in October 2016 compared to the same period last year but are showing signs of topping (see the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the last 12 months).
DATA SOURCE: MLS data as of 11/2/2016. Data believed to be accurate but not guaranteed.
On the mainland, we saw seller’s market in most areas and price ranges all the way to $350,000 (see more details in Vero Beach Mainland Real Estate Market Report October 2016).
The real estate market for condos on the island in Vero Beach was again slow in October 2016 with fewer sales compared to the same period last year. Sale prices started to decline and decreased by 11% compared to the same period year as shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 11/2/2016. Data believed to be accurate but not guaranteed.
However, seller’s market continues below $300,000, in $400,000 to $450,000 and in the $500,000 to $550,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report October 2016).
Vero Beach Real Estate Market Analysis – October 2016
The real estate market for single family homes on the Vero Beach barrier island continue to slow down in October 2016 as sales and sale prices continue to languish with sales declining by 39% compared to the same period in 2015 .
The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island the last 12 months.
DATA SOURCE: MLS data as of 11/2/2016. Data believed to be accurate but not guaranteed.
The lack of inventory in some price ranges such as $650,000 to $700,000 continues to create seller’s market (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report October 2016).
Overall Housing Market – October 2016
Mortgage rates remain at low levels and the projections by the experts show that the rates will remain at low levels all the way to 2017. However, the results of the upcoming election may change this scenario.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – October 2016.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from 2015 to present and the projections for all of 2016 and 2017.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – October 2016.
There is a change in this chart since last few months. The projects by the experts on the market activity for existing homes shows softening the next few months and all the way to 201. The Vero Beach real estate market shows similar trend in all areas.
The chart below shows the Fannie Mae new housing starts and Sales Forecast for Single Family Homes from 2015 to present and the projections to end of 2017
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – October 2016.
The demand for new construction is intact and this trend continues into 2017 with some projections showing acceleration in new housing starts as new construction offers solution to low existing home inventory..
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.