The Vero Beach real estate market in 2016 was a tale of 2 different markets as the activity and sale prices of homes on the mainland outpaced those on the barrier island. Home sellers on the mainland experienced brisk activity and increases in sale prices, while those on the barrier island experience a market slow down, especially in the second half of the year.
The real estate market activity in 2016 for homes on the island, both single family and condos was slower than the previous year. However as mortgage rates increased the 4th quarter, buyers rushed to close the deal before rates push higher in 2017. Overall, average of sale prices in 2016 managed a small increase of 3.2% compared to 2015, an indication that sale prices have started to stabilize.
In December 2016 Vero Beach home sales remained flat compared to the same period last year but increased by 4.9% compared to November. Inventory remained at almost the same levels as in 2015. The lack of inventory in some desirable locations and price ranges continues to affect sales.
Vero Beach Real Estate Market Highlights – December 2016
Although sales increased this month, the real estate market continues to soften in Vero Beach. Pending sales also remained the same levels compared to the same period last year which raises some concerns as we enter the traditionally strong winter season. Hopefully the recent and pending increases in mortgage rates may encourage buyers to lock rates and expedite their purchases.
The real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland continue to stabilize and slightly increased by 2.9% compared to the same period last year (see the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market throughout 2016).
DATA SOURCE: MLS data as of 1/2/2017. Data believed to be accurate but not guaranteed.
Seller’s market continues for price ranges up to $350,000 (see more details in
Vero Beach Mainland Real Estate Market Report December 2016).
In December 2016 the real estate market for condos on the island in Vero Beach got more active this month with 18% more sales than the same period last year. Sale prices continue to decline and decreased by 11.5% 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 1/2/2017. Data believed to be accurate but not guaranteed.
However, seller’s market continues below $200,000, in $300,000 to $350,000 and in some higher price ranges as buyers still hunt for good deals (see more details in
Vero Beach Barrier Island Condos Real Estate Market Report December 2016).
Vero Beach Real Estate Market Analysis – December 2016
The real estate market for single family homes on the Vero Beach barrier island continue to show signs of buyer fatigue in December 2016 but sale prices managed to increase by 7.8% 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 1/2/2017. Data believed to be accurate but not guaranteed.
Demand for homes up to $450,000 and in the $65,000K to $700,000 is intact (see more details in
Vero Beach Barrier Island Single Family Real Estate Market Report December 2016).
Overall Housing Market – December 2016
Mortgage rates have increased the last couple of months and jumped by half a percentage point post elections. It is expected that the Fed will raise interest rates as the economy improving in 2017. However, the projections by the experts show that the rates will remain at low levels and below 4.5% all the way to 2018 which is good news for buyers and sellers of Vero Beach real estate.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – December 2016.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2016 to present and the projections all the way to 2018.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – December 2016.
Existing homes sales have been flat the last few quarters. The projects by the experts on the market activity for existing homes shows steady activity the next few quarters throughout 2017 and all the way to 2018. The Vero Beach real estate market shows similar trend in all areas.
The demand for new construction is intact and this trend continues into 2017 and 2018 with some projections showing acceleration in new housing starts as new construction offers solution to low existing home inventory.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – December 2016.
New construction in several communities on the mainland and luxury homes on the island in Vero Beach continues to provide more options to buyers..
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.