Vero Beach home prices are on the rise again as buyers were actively looking for that special place in Florida and were willing to make offers. However, the real estate activity in May 2016 was still anemic as sales of Vero Beach homes were down by 20% compared to the same period last year. On the other hand, median of sale prices were increased by 24% compared to the same period in 2015as homes in desired locations and price ranges pushed the prices higher.
Vero Beach home sales declined by 20% in May 2016 compared to the same period in 2015and also lower by 9.7% compared to April. The slight increase in the inventory may again put some pressure on prices. We need to see more inventory in some price ranges that are in high demand to continue the price appreciation.
Vero Beach Real Estate Market Highlights – May 2016
The Vero Beach real estate market was more active in May 2016 as sales increased compared to April but not in all market segments or price ranges. Pending sales slightly increased by 4% compared to last year but were slightly lower than last month. Pending sales is a good forward indicator of market activity and this shows that the market although is stabilizing, we will need to see more activity moving forward.
The Vero Beach real estate market activity continues to vary by location and price range. Sale prices of homes in Vero Beach mainland are still on the rise and increased by 11.7% compared to the same period in 2015 (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 6/2/2016. Data believed to be accurate but not guaranteed.
We saw seller’s market in almost all areas and price ranges all the way to $250,000 (see more details in Vero Beach Mainland Real Estate Market Report May 2016).
In May 2016, the real estate market for condos on the island in Vero Beach was more active than in April as sales prices are still appreciating and increased by 16% compared to the same period last 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 6/2/2016. Data believed to be accurate but not guaranteed.
The seller’s market continues below $300,000 and in the $500,000 to $550,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report May 2016).
Vero Beach Real Estate Market Analysis – May 2016
The real estate market in May 2016 for single family homes on the Vero Beach barrier island was slightly more active than in April and seller’s market continues for homes up to $450,000.
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 6/2/2016. Data believed to be accurate but not guaranteed.
Demand continues to be strong for homes between $600,000 and $700,000 price ranges and is creating a seller’s market (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report May 2016.
Overall Housing Market – May 2016
Mortgage rates have stabilized and they have decreased the last few months. The projections by the experts show that the rates experts show that the rates will remain at historically low levels all the way to 2017, which is great news for buyers of Vero Beach real estate who should not hesitate to jump on the market as inventory is getting lower and demand is strong.
SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – May 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.
DDATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – May 2016.
The current projections by the experts show that the market activity picked up slowly in second quarter of 216 and will slightly increase in 2017. The Vero Beach real estate market remains active for homes on the mainland but the lack of inventory in some price ranges and locations on the barrier island has slowed down that market as fewer homes have been sold compared to the same period in 2015.
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 – May 2016.
New construction in several communities on the mainland is ongoing and development of new communities continues to attract buyers in value as well as luxury.
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.