A review of the Vero Beach Real Estate market in 2017 shows an active market with more sales and higher prices. An in-depth analysis of the 2017 real estate market reveals that Vero Beach mainland was a more active market than the one on the barrier island. The difference in these two markets was observed early in 2017 and it was exaggerated post hurricane Irma.
Overall in 2017 sales increased by 9.5% and the median of sale prices increased by 14.3% compared the same period in 2016. The increase in sale prices can be attributed to the active market of high-end homes on the barrier island which continues to attract both domestic and international buyers.
The difference in the real estate market between Vero Beach mainland and the barrier island can be seen by looking at the overall sales of condos and single family homes on the island in Vero Beach compared to the mainland in 2017. Sales of homes on the mainland increased by 11.5%, while sales of single family homes on the island increased by 8.6% and sales of condos on the island decreased by 7.4% compared to 2016.
Vero Beach Real Estate Market Highlights – December 2017
The following chart shows the median of sale prices in Vero Beach Florida for the whole 2017 year (January to December). The median of sale prices in December 2017 was $248,000.
DATA SOURCE: MLS data as of 1/2/2018. Data believed to be accurate but not guaranteed.
The reader can observe that the prices are still increasing but at a slower rate.
The 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 23% in December 2017 compared to the same period in 2016 with a median sale price of $214,000, as strong demand and low inventory kept pushing prices higher as shown on the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the who;e year 2017.
DATA SOURCE: MLS data as of 1/2/2018. Data believed to be accurate but not guaranteed.
Sales also increased by 25% compared to the same period last year. Seller’s market continues for price ranges up to $500,000. Demand for homes on the mainland remains strong as the migration of some barrier island residents to the mainland continues (see more details in Vero Beach Mainland Real Estate Market Report December 2017).
The real estate market for condos on the island in Vero Beach was a little more active in December 2017 but with 16% fewer sales compared to the same period in 2016 however, and sale prices have started to decline and remained at the same in December 2017 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 1/2/2018. Data believed to be accurate but not guaranteed.
Seller’s market continues below $300,000. Sales remain subdued the last few months an early indication of market fatigue and possibly price to value imbalance (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2017).
Vero Beach Real Estate Market Analysis – December 2017
The real estate market activity for single family homes on the Vero Beach barrier island got more active in December as sales jumped by 32% compared to last year, as high-end and luxury homes continue to attract buyers.
Sale prices on the other hand remained at the same level as in 2016 as weakness in some price ranges continue to impact sales and sale prices The median of sale prices for single family homes on the island was $625,000 in December 2017. The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island in 2017.
DATA SOURCE: MLS data as of 1/2/2018. Data believed to be accurate but not guaranteed.
There were 373 homes for sale with 45 pending contracts and Pending Ratio of only 12% (a good ratio is over 50%). Pending Sales increased by 4% compared to the same period last year which is good news for the market as we are entering the traditionally strong winter season (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report December 2017).
Overall Housing Market – December 2017
As year 2017 ended, mortgage rates remained at historic lows around 4%. Regardless the interest rate increases by the Fed in 2017 experts still do not see dramatic rate increases for 2018 despite the improving economy and recent tax cuts. The experts expect that rates will slowly increase but remain low in 2018 and all the way into 2019, which is good news for both buyers and sellers of Vero Beach real estate.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – December 2017.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2017 to present and the projections all the way to 2019.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – December 2017.
Existing homes sales have been flat the last 6 months and the expectation 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 is recovering from the impact of hurricane Irma with fewer sales the last 3 months but sales increased in December , good news for the market.
The following chart shows that new construction continues unabated as demand for new homes is steady and according to the experts will continue in 2018 albeit at a slower pace.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – December 2017.
New construction in several communities in Vero Beach continues on the mainland and on the island which is encouraging as we enter the traditionally strong winter season..
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