The Vero Beach real estate market in 2015 gave us excitement with price increases but ended in December on a cautionary note with fewer sales as we are getting ready for the 2016 winter season. Inventory was reduced and it is 10% lower than in 2014. Overall, median of sale prices increased by 2.1% in December 2015, a slight increase compared to previous years.
Unlike sale pricessales decreased by 14.5% in December 2015 compared to the same period last year which can be attributed to low inventory in some desirable areas and price ranges and lower demand. Overall, there were 3.6% more homes sold in 2015 than in 2014. The recent increase in the inventory in some areas and price ranges will most probably benefit the market in 2016 but we need to see demand to sustain price appreciation.
Vero Beach Real Estate Market Highlights – December 2015
The Vero Beach real estate market activity was subdued in December 2015 ith decreases in sales in some market segments and especially on the barrier island. Pending sales also decreased by 1.9% compared to the same period last year.
The Vero Beach real estate market activity continues to varry by price range and area. Sale prices in Vero Beach mainland are still appreciating and increased by 17% compared to the same period in 2014 (see the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market throughout 2015).
DATA SOURCE: MLS data as of 1/2/2016. Data believed to be accurate but not guaranteed.
Sellers market was extended to in most areas and price ranges all the way to $350,000 (see more details in Vero Beach Mainland Real Estate Market Report December 2015).
The market for condos on the island improved the last couple of months as sale prices have stabilized and have started to increase again. The trend reversal of sale prices is shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 1/2/2016. Data believed to be accurate but not guaranteed.
However, the seller’s market continues below $300,000, in the $400,000 to $450,000, in $500,000 to $550,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2015).
Vero Beach Real Estate Market Analysis – December 2015
Sale prices for single family homes on the island are again stabilizing after few months of price swings and activity. The inventory continues to increase which will help with future sales.
The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island throughout 2015.
DATA SOURCE: MLS data as of 1/2/2016. Data believed to be accurate but not guaranteed.
Seller’s market continues for homes up to $550,000 and $600,000 to $650,000 price ranges. (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report December 2015).
Overall Housing Market – December 2015
Mortgage rates show that will start to gradually increase as the Fed has started to increase interests in December 2015. However, the projections show that the rates will remain at historically low levels and low mortgage rates will continue to lure buyers from the northern states into purchasing homes in Vero Beach as the winter season gets into full swing.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – December 2015.
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 – December 2015.
Nationally, the existing home sales increased sharply in Q3 of 2015 but have tapered off the last few months and that the market activity levels off throughout 2016 and 2017. Sales activity has been strong year to date for the Vero Beach real estate market but has slowed down a bit as the inventory is building up for the 2016 season.
The chart below shows the Fannie Mae new housing starts and Sales Forecast for Single Family Homes from 2014 to present and the projections to end of 2016
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – December 2015.
New construction in several developments continues to present more choices to the buyers and several new communities offer new entry homes in great price range and value.
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.