Vero Beach home prices continue increase despite low sales volumes in June 2016. The real estate activity was again slow this month as sales of Vero Beach homes were down by 17% compared to the same period in 2015. On positive note, median of sale prices were increased by 26% compared to the same period last yearas homes in desired price ranges and locations and newly constructed homes pushed the prices higher.
Vero Beach home sales declined by 13% in June 2016 compared to May and by 17% compared to the same period last year. Inventory also decreased in June 2016 compared to the same period in 2015. We need to see more inventory in some desirable price ranges for the continuation of price appreciation.
Vero Beach Real Estate Market Highlights – June 2016
The Vero Beach real estate market was slower in June 2016 as sales decreased compared to May but was hot in some market segments or price ranges. Pending sales also decreased by 3.8% compared to last year and by 11% compared to May. Pending sales is a good forward indicator of market activity and this shows that the market is slowing down this summer season.
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 19% compared to the same period last year (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 7/2/2016. Data believed to be accurate but not guaranteed.
We saw seller’s market in almost all areas and price ranges all the way to $300,000 (see more details in Vero Beach Mainland Real Estate Market Report June 2016).
In June 2016, the real estate market for condos on the island in Vero Beach was not as active as in May but sales prices rose and increased by 16.5% compared to the same period in 2015 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 7/2/2016. Data believed to be accurate but not guaranteed.
The seller’s market continues below $300,000, in $350,000 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 June 2016).
Vero Beach Real Estate Market Analysis – June 2016
The real estate market for single family homes on the Vero Beach barrier island in June 2016 was slower than in May, however the 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 7/2/2016. 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 June 2016.
Overall Housing Market – June 2016
Mortgage rates have stabilized and they remain low as the Fed is not expected to raise interest rates in the near future especially after the BREXIT. The projections by the experts show that the rates will remain at low levels all the way to 2017, which is great news for buyers of Vero Beach real estate who should not hesitate to make offers as inventory is getting lower and demand is steady.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – June 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.
The activity for existing homes has slowed down a bit but the housing market projections show a slow increase in demand in the second quarter of 2016 and in 2017. The 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 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 – June 2016.
New construction in several communities on the mainland and luxury units on the island is ongoing and attracting buyers of both value and 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.