Vero Beach home prices are stabilizing as the real estate market continues to show signs of fatigue. Vero Beach real estate sales in April 2016 were not as strong as in the previous 2 years. Median of sale prices were increased by 5.6% compared to the same period last year but the upwards trend is waning.
Vero Beach home sales declined by 20.3% in April 2016 compared to the same period in 2015but jumped by 22% compared to March. The recent increase in the inventory may also put a pressure on prices. We need to see more inventory in some price ranges that are in high demand.
Vero Beach Real Estate Market Highlights – April 2016
The Vero Beach real estate market was more active in April 2016 as sales increased compared to March but not in all market segments or price ranges. Pending sales declined by 13.4% compared to last year and slightly increased compared to last month. Pending sales is a good forward indicator of market activity and this shows that the market is stabilizing.
The Vero Beach real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland are still on the rise and increased by 12.8% compared to the same period last year but prices are stabilizing (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 5/2/2016. Data believed to be accurate but not guaranteed.
We saw seller’s market in almost all areas and price ranges all the way to $350,000 (see more details in Vero Beach Mainland Real Estate Market Report April 2016).
In April 2016, the real estate market for condos on the island in Vero beach was more active than in March as sales jumped by 80% but were lower by 29% compared to the same period in 2015 and price increases took a break from the upward trend we saw the last few months 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 5/2/2016. Data believed to be accurate but not guaranteed.
The seller’s market continues below $300,000, in the $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 April 2016).
Vero Beach Real Estate Market Analysis – April 2016
The real estate market for single family homes on the Vero Beach barrier island have stabilized but seller’s market continues for homes up to $450,000. However, the increase in inventory we saw the last few months has not translated into substantially more sales.
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 5/2/2016. Data believed to be accurate but not guaranteed.
Demand continues to be strong for homes between $600,000 and $700,000 price ranges. (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report April 2016).
Overall Housing Market – April 2016
Mortgage rates have stabilized and they have decreased the last few months. The projections by the experts show that the rates will remain at historically low levels all the way to 2017 with some slight increases along the way, which may encourage buyers to take advantage of this opportunity.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – April 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 – April 2016.
Nationally, the existing home sales increased sharply in Q3 of 2015 but dropped in Q4. The current projections by the experts show that the market activity picked up slowly but will remain subdued throughout 2016 and slightly increase in 2017. However, The Vero Beach real estate market remains active but the national slowdown has also affected the local market as sales have slowed down considerably 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 – April 2016.
Construction of high-end homes in some communities is encouraging but demand has not caught up with the supply for these homes.
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.