The Vero Beach real estate market activity slowed down in July 2016 but home sale prices continued to increase despite the lower volume in sales. The real estate activity was again slow this month as sales of Vero Beach homes were down by 20% compared to the same period last year. On positive note, median of sale prices were increased by 16.9% compared to the same period in 2015as homes in desired price ranges and locations and newly constructed homes pushed the prices higher.
Vero Beach home sales declined by 15.6% in July 2016 compared to June and by 20% compared to the same period last year. Inventory in July 2016 remained at almost the same levels compared to the same period in 2015. The lack of inventory in some desirable locations and price ranges is impacting sales.
Vero Beach Real Estate Market Highlights – July 2016
The Vero Beach real estate market slowed down again in July 2016 as sales decreased by 20% compared to the same period in 2015. Pending sales in July 2016 decreased by 4.2% compared to June and by 3.6% compared to the same period last year. Pending sales is a good forward indicator of market activity and this shows that the market has slowed down this 2016 summer season.
The Vero Beach real estate market activity varied again by location and price range. Sale prices of homes in Vero Beach mainland continue to appreciate and increased by 17.8% 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 8/2/2016. Data believed to be accurate but not guaranteed.
We saw seller’s market in all areas and price ranges for the first time all the way to $400,000 (see more details in Vero Beach Mainland Real Estate Market Report July 2016).
The real estate market for condos on the island in Vero Beach was sluggish in July 2016 with fewer sales and pendings compared to the same period last year but sales prices managed to edge higher and as the median of sale prices in July 2016 was higher than 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 8/2/2016. 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 July 2016).
Vero Beach Real Estate Market Analysis – July 2016
The real estate market for single family homes on the Vero Beach barrier island slowed down considerably in July 2016 as sales decreased, but sale prices have stabilized and still increased by 9% compared to the same period last year.
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 8/2/2016. Data believed to be accurate but not guaranteed.
The lack of inventory in the $600,000 to $650,000 price range continues to create a seller’s market (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report July 2016).
Overall Housing Market – July 2016
Mortgage have remained low for almost 6 months as the Fed is reluctant to raise interest rates in the near future as it has missed that opportunity earlier this year of international market turmoil and especially after 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 – July 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 – July 2016.
The market activity for existing homes dipped in Q3 of 2016 as inventory levels fell but the housing market projections show a slow decrease in demand in the second half of 2016 but increasing starting the 2nd quarter of 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 is affecting sales and sale prices.
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 – July 2016.
New construction in several communities on the mainland and luxury units on the island continues to offer plenty of options to buyers of Vero Beach real estate.
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.