Hurricane Irma took its toll on the Vero Beach real estate market with fewer sales as people were busy preparing for the storm. Irma’s late summer visit put a break into otherwise very active summer in Vero Beach real estate. Sales declined but sales prices increased compared the same period last year. The market continues to be active for high-end homes on the barrier island and new construction on the mainland.
Despite the decline in sales, sale prices are still appreciating and increased by 13% compared to the same period last year as the median of sale price was $230,000 in September. Price appreciation is good news for sellers as we are getting ready for the seasonally strong winter season.
Vero Beach Real Estate Market Highlights – September 2017
The real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland are stabilizing but they still managed a 16.7% compared to last year as shown on 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 10/2/2017. Data believed to be accurate but not guaranteed.
However, sales declined by 21% mainly due to hurricane Irma. Seller’s market continues for price ranges up to $350,000 and surprisingly in prices over $500,000.
The real estate market for condos on the island in Vero Beach was also affected by Irma as turned around with reduction in sales by 22%, however, median prices increased by 17% in September 2017 compared to the same period in 2016 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 10/2/2017. Data believed to be accurate but not guaranteed.
Seller’s market continues below $300,000 and in $500,000 to $550,000 price ranges as buyers are still looking for that special condo on the island.
Vero Beach Real Estate Market Analysis – September 2017
The real estate market for single family homes on the Vero Beach barrier island continues to draw buyers but hurricane Irma put a break into the late summer activity as sales decreased by 28% , but median of sale prices increased by 13% compared to the same period in 2016 . The price action is good new for sellers of single family homes on the island as we are preparing for the 2018 winter season.
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 10/2/2017. Data believed to be accurate but not guaranteed.
Demand for homes up to $550,000 is intact and recently for high-end homes.
Overall Housing Market – September 2017
Mortgage rates increased slightly in the beginning of 2017 but they declined during the 2nd and 3rd Quarter despite the recent interest rate increases by the Fed. With the improving economy the Fed will keep raising interest rates and we will eventually see slow increases in mortgage rates. However, the experts still expect that rates will remain low all the way through 2018 which is good news for buyers and sellers of Vero Beach real estate.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – September 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.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – September 2017.
Existing homes sales have been flat the last 6 months and the expectations by the experts is that demand will subside until 1Q of 2018. However, the expectation is that we should see some improvement in existing home sales in 2018 starting the 2nd quarter. The Vero Beach real estate market was impacted by hurricane Irma with fewer sales in September compared to August and the same period last year.
The following chart shows that Little has changed in the projections by the experts regarding new construction as demand for new homes is steady and demand for new homes will continue but at slower pace the rest of 2017 with some improvement in 2018.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – September 2017.
New construction in several communities in Vero Beach continues on the mainland and on the island with more entry level homes as well as luxury single family homes and condos in Vero Beach which is encouraging for the market moving forward..
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