This is a sizzling summer for Vero Beach real estate market and it is not due to weather. July was another strong month for the market with continued price appreciation, and seller’s market in many areas and price points. We have not yet observed the usual lull in home sales which is typical for this time of the year. The real estate market in Vero Beach mainland continued its strong performance and was joined by the improving barrier island market for single family homes and condos.
Year to date, we have seen a 21.1% reduction in inventory and a 12.7% increase in median sale prices, indicating that the demand for Vero Beach real estate is still strong.
There were 1288 single family homes and condos for sale in July of 2013 compared with 1337 in June, a 3.7% decrease in inventory this month. Home sales in July have increased by 35.2% compared to the same period in 2012.
Real Estate Market Highlights
The median home price for homes in Vero Beach mainland increased by 9.5% in July from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 8/2/2013. Data believed to be accurate but not guaranteed.
Total home sales for July 2013 was 2.5% higher than June 2013 and 12.5% higher from the same month in 2012. The lower inventory level bodes well for the market in general and a steady demand for homes in Vero Beach mainland. (see more details in Vero Beach Mainland Real Estate Market Report July 2013).
The real estate market on the barrier island in Vero Beach was not as strong, but it has improved the last few months. This month we saw a continuation of the reduction in inventory but the current demand has not yet put a significant dent in the available inventory.
DATA SOURCE: MLS data as of 8/2/2013. Data believed to be accurate but not guaranteed.
Total condominium sales in July 2013 were 35% higher than in July 2012, but lower than in June. The chart above shows that sale prices are trying to form a bottom, but median of sale prices took a dip in July . The good news is that the market of Vero Beach island condos is getting more active and is improving between $550K – $650K (see more details in Vero Beach Barrier Island Condos Real Estate Market Report July 2013).
Real Estate Market Analysis
More single family homes were sold in July of 2013, a 55% increase from the same period last year. Inventory continues to decline but it is still at a level that sustains buyer’s market condition in many price ranges. 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 7/2/2013. Data believed to be accurate but not guaranteed.
The chart above shows that the inventory of available homes for sale is declining but is still at high levels. The number of homes sold the last 3 months is increasing. If this trend continues, we will see a healthier market and more sales (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report July 2013).
Overall Housing Market
The increase in interest rates we are seeing the last couple of months is projected to accelerate the rest of 2013 and to continue into 2014 as shown in the chart below.
DDATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – July 2013.
Interest rates increase may encourage buyers to jump into the market and start buying properties when the interest rates are still at historic lows. The jump in rates is projected to slow down the pace of the housing recovery. The chart below shows the Fannie Mae existing homes sales from 2012 to 2013 and sales forecast projections for 2014.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – July 2013.
The market experts expect a decline in sales during the 3rd quarter of 2013 and with the sales to start increasing again the 4th quarter of 2013 and into 2014. We will keep a close eye on this trend, and will notify our subscribers through special updates.
Sellers need to keep abreast of this development and be prepared to negotiate offers
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.