Vero Beach real estate market showed strength going into 2013, but slowed down in January in terms of sales. January is typically a transition month for Vero Beach real estate market which enters its seasonality.
More homes continue to enter the market increasing the available inventory, a trend that started the 3rd quarter of 2012. This is good news for the buyers and those that have started the winter migration to Florida looking for warm weather and possibly purchasing a piece of paradise called Vero Beach.
There were 1570 single family homes and condos for sale in December of 2012. That number increased to 1613 homes for sale in January, a 3% increase in inventory. Sales on the other hand went down from 166 properties sold in December 2012 to 119 properties sold in January, a 28% decrease in sales. Low inventory levels in some areas and price ranges fuel increased demand and home prices start to rise as more buyers are facing smaller number of listings.
Real Estate Market Highlights
The median home price for homes in Vero Beach mainland was 6% higher in January than the same time the prior year (see the chart below).
DATA SOURCE: MLS data as of 2/4/2013. Data believed to be accurate but not guaranteed.
The chart shows a steady increase in home prices the last 12 months. Demand was particular strong for homes priced below $200,000 (see more details in Vero Beach Mainland Real Estate Market Report January 2013).
The story, however, is not the same for the condominium real estate market on the barrier island in Vero Beach as the following chart of the median sale prices for condos on the island shows.
DATA SOURCE: MLS data as of 2/4/2013. Data believed to be accurate but not guaranteed.
The chart shows a steady decline in the median of sale prices for condos on the island for the last 12 months. The good news is that the market of Vero Beach island condos is getting more active and is strengthening between $300,000 to $450,000 price range (see more details in Vero Beach Barrier Island Condos Real Estate Market Report January 2013).
Real Estate Market Analysis
The median home price for single family homes on the barrier island in Vero Beach 8% higher in January 2013 than the same period in 2012. Inventory is increasing at a higher rate than sales, extending the buyer’s market condition. The following chart shows the trends of inventory (For Sale) and the actual sales (Sold) in Vero Beach barrier island single family home market.
DATA SOURCE: MLS data as of 2/4/2013. Data believed to be accurate but not guaranteed.
The inventory of available single family homes on the barrier island has increased the last 4 months, but still at lower levels than the beginning of 2012. The number of sales for the last 12 months has been steady, but we saw a 55% drop compared to the previous month (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report January 2013).
The real estate market of condos on the island in Vero Beach is getting more active and is strengthening between $300,000 to $450,000 price range (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2012).
Overall Housing Market
The chart below shows the Fannie Mae new housing starts and Sales for Single Family Homes from 2011 to 2012 and the projections for 2013.
DATA SOURCE: Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – January 2013.
The reader can observe that from 1st quarter of 2011 to 2nd quarter of 2012, the number of starts & sales have been slowing increasing, but from 3rd quarter of 2012 and the projections to the next 6 quarters we see an increase in acceleration. This is great news indicating that we are not only in a short term housing recovery, but the recovery is expected to continue in 2013.
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.
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