The Vero Beach real estate market ended 2014 on a high note with more sales, higher prices and reduced inventory. The real estate market for high end homes and condos on Vero Beach Barrier Island is still active and is gearing up for the 2015 season.
The inventory of homes available for sale in Vero Beach in December 2014 has decreased by 2% from last month and by 13.8% from the same period in 2013. Days on the market (DOM) decreased by an impressive 37% compared to 2013 meaning homes are selling faster. The market activity in January will give us clues as to the strength of the market during the 2015 winter season.
Vero Beach Real Estate Market Highlights – December 2014
Overall the median of sales prices for December 2014 slightly decreased by 2.5% from the same period in 2013. However, sales were very strong as we saw an impressive 32.7% increase in sales compared to the same period last year.The activity for each major segment of the Vero Beach real estate varied in terms of sales, inventory and price action. In Vero Beach mainland, sales prices are still appreciating and have increased by 4.4% compared to the same period in 2013 (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 1/2/2015. Data believed to be accurate but not guaranteed.
Home sales for December 2014 were 28% higher than in November and 10% higher compared to the same period in 2013. The increase in sales this month bodes well for the start of the new 2015 season (see more details in Vero Beach Mainland Real Estate Market Report December 2014).
The market activity for condos on the barrier island regained strength in December with a 55% increase compared to the same period last year. Sale prices have been appreciating and have increased compared to the same period last year as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 1/2/2015. Data believed to be accurate but not guaranteed.
Demand has remained steady for lower priced condos and has increased for condos priced from $500,000 to $550,000 (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2014).
Vero Beach Real Estate Market Analysis – December 2014
The Vero Beach real estate market for single family homes on the barrier island was also active in December 2014. However, medial of sales prices have slightly decreased compared to 2013 and have reached their high point the last few months of 2014. The inventory continues to decline which may boost sale prices.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 1/2/2015. Data believed to be accurate but not guaranteed.
Demand has remained steady for lower priced homes but it is increasing for homes priced from $500,000 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 2014).
Overall Housing Market – December 2014
The increase in mortgage rates we saw in 3rd quarter of 2013 has tapered off in 2014 as the rate of increases continue to be revised to show much lower levels from previous projections in December. The continuation of low mortgage rates into 2015 will have a positive impact to Vero Beach Real Estate Market with possible increase in sales during the 2015 winter months.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – December 2014.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from 2013 to present and the projections for the rest of 2014 and 2015.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – December 2014.
Nationally, the existing home sales show a dip in Q1 of 2014, with an increase in activity the rest of 2014. This activity is projected to level off in 2015. The Vero Beach real estate market did not follow this trend, with strong sales in 2014. However, the rate of increase slowed down during the summer but regained strength in Q4 2014. The market activity is expected to continue strong in 2015 as we enter the winter season.
Sellers need to keep a close eye on the sales and price action of single family homes on the barrier island next month and prepare to properly position their homes with the market.
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.