The 2015 season for Vero Beach real estate market officially ended in April with a lot of activity and potential for further price increases based on the pending sales which jumped by 9.8%. Lack of inventory has definitely affected sales which remained flat compared to the same period last year. Fewer homes were sold on the barrier island than the same period last year as inventory is decreasing, but not for all areas and price ranges.
The post season market activity and pending sales in May will give us a better idea of the market’s strength as we enter the slower summer season.
Vero Beach Real Estate Market Highlights – April 2015
Overall the median of sales prices for April 2015 remained flat posting a slight increase compared to the same period last year. Sales were strong on the mainland but more subdued on the island, mainly due to low inventory in some areas and price ranges.The activity in each major segment of the Vero Beach real estate market gave us different view on sales and price action. In April 2015 a strong market developed in Vero Beach mainland as sale prices are still appreciating and increased by 5.4% compared to the same period last year (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 5/2/2015. Data believed to be accurate but not guaranteed.
In addition, home sales in April 2015 increased by 8% compared to the same period last year (see more details in Vero Beach Mainland Real Estate Market Report April 2015).
The market was active for condos on Vero Beach barrier island in April 2015 but price appreciation took a break as prices have started to stabilize as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 5/2/2015. Data believed to be accurate but not guaranteed.
Seller’s market continues below $400,000 and in $650,000 to $700,000 price ranges and in all areas except North Beach (see more details in Vero Beach Barrier Island Condos Real Estate Market Report April 2015).
Vero Beach Real Estate Market Analysis – April 2015
Sales for single family homes on the increased in April 2015 despite the lower inventory, but still lower than the same period in 2014. Median of sale prices also decreased by 3.8% compared to the same period last year. The inventory continues to decline which may boost sale prices the rest of 2015.The following chart shows the price action trend of single family homes in Vero Beach barrier island real estate market the last 12 months.
DATA SOURCE: MLS data as of 5/2/2015. Data believed to be accurate but not guaranteed.
The demand remained steady for lower priced homes but keeps increasing for homes priced from $550,000 to $600,000 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report April 2015).
Overall Housing Market – April 2015
The mortgage rates remained low in last quarter of 2014 and the beginning of 2015 as the rate of increases continue to show lower levels. The projection for the rest of 2015 and in 2016 show that rates are expected to still remain at low levels which bodes well for the Vero Beach Real Estate Market with possible increase in sales through the rest of 2015 as buyers are taking advantage of historic low mortgage rates.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – April 2015.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from 2014 to present and the projections for the rest of 2015 and 2016.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – April 2015.
Nationally, the existing home sales increased sharply in Q3 of 2014, but leveled off and dropped in Q1 into 2015. This activity is projected to start increasing in Q2 2015 and into 2016. The sales activity was strong for the Vero Beach real estate market during the 2015 season but the lack of inventory has definitely affected sales. The market activity is expected to continue strong post season as indicated by the strong pending sales in April.
Buyers are certainly interested in buying homes in good locations and communities, perform renovations and driving prices up for other homes in those communities.
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.