The low inventory is impacting Vero Beach real estate market and especially the market on the barrier island. This February 2015, fewer single family homes and condos were sold on the island (zip code 32963), than the same period last year. The real estate market for high end homes and condos in Vero Beach is affected the most due to lack of available homes for sale.
The inventory of homes available for sale in Vero Beach in February 2015 has decreased by 14% from the same period in 2014. Days on the market (DOM) decreased by 7% compared to 2014 meaning homes are selling faster. The market activity in March will give us a better idea as we enter the 2nd half of the traditionally strong winter season.
Vero Beach Real Estate Market Highlights – February 2015
Overall the median of sales prices for February 2015 were lower by 5.2% from the same period in 2014. Sales also fell by 4.5% compared to the same period last year.The activity in each major segment of the Vero Beach real estate was consistent in terms of sales, inventory and price action, except on the mainland. In Vero Beach mainland, sale prices are still on the rise and increased by 14.5% compared to the same period in 2014 (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 3/2/2015. Data believed to be accurate but not guaranteed.
However, home sales for February 2015 were 2.1% lower than in January and 7.3% lower compared to the same period last year (see more details in Vero Beach Mainland Real Estate Market Report February 2015).
The market activity for condos on the barrier island was not as strong in February but sales prices were 15% lower than the same period last year as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 3/2/2015. Data believed to be accurate but not guaranteed.
Seller’s market continues below $400,000 and in $650,000 – $900,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report February 2015).
Vero Beach Real Estate Market Analysis – February 2015
February was also a slow month for single family homes on the barrier island in Vero Beach with fewer sales as we saw 29% fewer sales than the same time last year, but and 12.5% more sales than in January. Median of sale prices also decreased by 6% compared to February of 2014 . The inventory continues to decline which may boost sale prices the rest of the season.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 3/2/2015. Data believed to be accurate but not guaranteed.
The demand has remained steady for lower priced homes but keeps increasing for homes priced from $500,000 to $550,000 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report February 2015).
Overall Housing Market – February 2015
The increase in mortgage rates we saw in 1st quarter of 2014 has tapered off in 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 not expected to go up that much and remain at low levels which will have a positive impact to Vero Beach Real Estate Market.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – February 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 – February 2015.
Nationally, the existing home sales increased sharply in Q3 of 2014, but leveled off into 2015. This activity is projected to slightly increase the rest of 2015 and 2016. The sales activity was strong for the Vero Beach real estate market, slowed down during the summer of 2014 but ended the year on a high note. The market activity is expected to continue strong in 2015 during the winter season.
Sellers are enjoying an active real estate market with reduced inventory where buyers compete for that right place in sunny and warm Florida.
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.