Vero Beach real estate market was active in August 2015 but sale prices are not appreciating in all areas. There are mixed signals that the current Vero Beach real estate market is giving us as we are headed into the fall season. Overall we saw a slight decrease in average of sale prices by 2.3% compared to the same period last year.
However, pending sales increased by 5.4% compared to last year which is a good sign as we are heading into the fall and hopefully it will also carry over into the 2016 winter season.
Vero Beach Real Estate Market Highlights – August 2015
August 2015 was an active month for Vero Beach real estate but sales decreased by 5.7% compared to the same period in 2014. Buyers are still active and homes that are priced well move quickly.
The market activity however, varied by area and price range as the market on the mainland was stronger than on the barrier island, where sales of condos and single family homes is declining. Sale prices in Vero Beach mainland are still appreciating and slightly increased by 8% compared to the same period last year (see the chart below of Vero Beach Mainland Real Estate Market.
DATA SOURCE: MLS data as of 9/2/2015. Data believed to be accurate but not guaranteed.
Pending sales were declined slightly but still at a healthy level which is a good sign as the inventory levels get lower and demand remains steady (see more details in Vero Beach Mainland Real Estate Market Report August 2015).
The slowdown continues in the real estate market for condos on the island in Vero Beach as sales and sale prices continue to decline in August 2015 as illustrated in the following chart of the median of sale prices for Vero Beach barrier island condos.
DATA SOURCE: MLS data as of 9/2/2015. Data believed to be accurate but not guaranteed.
Despite this decline, the seller’s market continues below $350,000, in $400,000 to $450,000 and in $600,000 to $700,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report August 2015).
Vero Beach Real Estate Market Analysis – August 2015
Sale prices for single family homes on the island have stabilized and started to appreciate again after few months of stagnation. The inventory continues to decline and remains at lower levels than the previous 3 years.
The following chart shows the 12 month price action and trend for single family homes in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 9/2/2015. Data believed to be accurate but not guaranteed.
The demand has remained steady for homes priced up to $450,000 and is increasing for homes priced from $600,000 to $700,000 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report August 2015).
Overall Housing Market – August 2015
Mortgage rates continue to show low levels as the Fed is reluctant to raise rates in the current economic environment. The projections by the experts show a moderate increase the rest of the year and into 2016.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – August 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 – August 2015.
Nationally, the existing home sales increased sharply in Q3 of 2014, but leveled off and dropped in Q1 2015. The current projection by the experts has been revised to show stronger market activity throughout 2015 and into 2016. The sales activity has been strong year to date for the Vero Beach real estate market and especially on the mainland.
Buyers are still interested in buying homes in good locations and communities in Vero Beach. The decline in the inventory in some areas and price ranges has caused some bidding wars on well priced properties and sometimes properties that are getting offers as soon as they hit the market.
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 – August 2015.
New construction on several communities in Vero Beach is ongoing and development of new communities is under way on the island and on the mainland.
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.