A review of the Vero Beach Real Estate market in 2018 shows achanging market with slightly more sales and flat sale prices. An in-depth analysis of the 2018 real estate market reveals that Vero Beach that the market was more active the first half of the year, but it slowed down the second half. We saw slightly stronger real estate market on the mainland compared to the barrier island.
Overall in 2018 sales increased by only 1% compared to 2017 and the median of sale prices remained at the same level as they decreased by 1.6% compared the same period last year.
Vero Beach Real Estate Market Highlights – December 2018
The following chart shows the median of sale prices in Vero Beach Florida for the whole 2018 year (January to December). The median of sale prices in December 2018 was $244,000 compared to $248,000 in 2017 as shown in the chart below.
DATA SOURCE: MLS data as of 1/2/2019. Data believed to be accurate but not guaranteed.
The reader can observe that the prices are almost flat throughout the year.
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 6% in December 2018 compared to the same period in 2017 with a median sale price of $228,000 as shown on the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the whole year 2018.
DATA SOURCE: MLS data as of 1/2/2019. Data believed to be accurate but not guaranteed.
Sales however decreased by 17% compared to the same period last year. Seller’s market continues for price ranges up to $350,000. Demand for homes on the mainland remains intact as both newcomers and island residents search for value on the mainland in Vero Beach (see more details in Vero Beach Mainland Real Estate Market Report December 2018).
This year, the real estate market for condos on the island in Vero Beach remained range bound but managed to edge sales by 9% compared to 2017. However, sale prices started to decline as median of sale prices in 2018 was 5% lower than 2017, 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 1/2/2019. Data believed to be accurate but not guaranteed.
Seller’s market continues below $300,000. The median sold price in December was $280,000 and the median of sale prices in 2018 was $362,000 versus $380,000 in 2017 (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2018)
Vero Beach Real Estate Market Analysis – December 2018
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.
Median of sale prices are fluctuating but managed a 17% increase over the same period in 2017 The median of sale prices for single family homes on the island was $736,000 in December 2018. The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island in 2018.
DATA SOURCE: MLS data as of 1/2/2019. Data believed to be accurate but not guaranteed.
Overall there were 408 single family homes sold on the island, slightly more that in 2017. The median of sale prices of all single family homes sold on the island in 2018 was $695,000 versus $700,000 in 2017 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report December 2018).
Overall Housing Market – December 2018
We saw an increase in mortgage rates in 2018 but remained just below 5% which historically is still low. Despite the interest rate increases by the Fed in 2018, the experts expect that rates will remain below 5% throughout 2019 and all the way to 2020, 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 2018.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2018 to present and the projections all the way to 2020.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – December 2018.
Existing homes sales dipped the second half of 2018, a trend we also experience here in the Vero Beach real estate market. However, the expectation is that we should see some improvement in existing home sales starting the 2nd quarter of 2019.
The following chart shows that new construction had a dip in activity in the second half of 2018, but it will recover in 2019 and into 2010 albeit at a slower pace.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – December 2018.
New construction in several communities in Vero Beach continues on the mainland and also on the island especially for high-end homes..
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