The Vero Beach real estate market in January 2016 started slower than the previous years with fewer sales and lower sale prices and lower inventory which has been reduced by 9% compared to 2015. Overall, median of sale prices decreased by 3% in January 2016, a slight increase compared to previous year.
Sales decreased by 16.5% in January 2016 compared to the same period last year which may be attributed to lower inventory level in some areas and price ranges and lower demand. The good news is that the recent increase in the inventory in some areas and price ranges and the seasonal increased demand will benefit the market the next few months but we need to see stronger demand to sustain price appreciation.
Vero Beach Real Estate Market Highlights – January 2016
The Vero Beach real estate market activity was subdued in January 2016 as sales decreased in some market segments and especially on the barrier island. Pending sales decreased by 13% compared to the same period last year which will affect sales and sale prices.
The Vero Beach real estate market activity continues to varry by price range and area. Sale prices in Vero Beach mainland are still appreciating and increased by 5.3% compared to the same period in 2015 (see the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the last 12 months).
DATA SOURCE: MLS data as of 2/2/2016. Data believed to be accurate but not guaranteed.
We experienced seller’s market in some areas and price ranges all the way to $250,000 (see more details in Vero Beach Mainland Real Estate Market Report January 2016).
The market for condos on the island improved the last couple of months as sale prices have stabilized and continue to increase. The trend of sale prices is shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 2/2/2016. Data believed to be accurate but not guaranteed.
The seller’s market continues below $300,000, in the $400,000 to $450,000, in $600,000 to $650,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report January 2016).
Vero Beach Real Estate Market Analysis – January 2016
Sale prices are increasing and the seller’s market continues for homes up to $450,000. The inventory is increasing which will help with sales moving forward.
The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island throughout 2015.
DATA SOURCE: MLS data as of 2/2/2016. Data believed to be accurate but not guaranteed.
Seller’s market continues for homes between $550,000 and $600,000 price range. (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report January 2016).
Overall Housing Market – January 2016
Mortgage rates show that will start to gradually increase as we saw after the fist Fed rate increase in December 2015. However, the projections show that the rates will remain at historically low levels and low mortgage rates will continue to lure buyers purchasing homes in Vero Beach as the 2016 winter season is under way.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – January 2016.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from 2015 to present and the projections for all of 2016 and 2017.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – January 2016.
Nationally, the existing home sales increased sharply in Q3 of 2015 but dropped the last few months. The current projections by the experts show that the market activity picks up slowly but remains subdued throughout 2016 and 2017. However, the Vero Beach real estate market remains active but not as strong as in the same period in 2015.
The chart below shows the Fannie Mae new housing starts and Sales Forecast for Single Family Homes from 2015 to present and the projections to end of 2017
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – January 2016.
New construction on several communities is ongoing and development of new homes is under way.
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.