The Vero Beach real estate market slowed down in July 2014 from the strong pace of the spring season. The real estate market activity for high priced homes and condos on the barrier island in Vero Beach is still attracting buyers albeit at a slower pace. Waterfront properties are still in demand as buyers have shifted their attention from the mainland to the barrier island.
We have noticed that the days on the market (DOM) for Vero Beach home sales has decreased and 39% lower than the same period last year, indicating steady demand for Vero Beach properties.
Vero Beach Real Estate Market Highlights – July 2014
Median of home values for July 2014 remained at almost the same from the same period in 2013 (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 8/2/2014. Data believed to be accurate but not guaranteed.
Sales in July on the mainland decreased by 13.5% and the inventory increased by 18.8%compared to the same time in 2013, which has affected sale prices (see more details in Vero Beach Mainland Real Estate Market Report July 2014).
In July the market has taken a break with fewer sales and sale prices lower than in June as we have entered the summer doldrums. The market activity for condos on the barrier island slowed down in July as we saw a 12% decrease in sales compared to the same period in 2013. Sale prices were also retreaded as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 8/2/2014. Data believed to be accurate but not guaranteed.
However demand has remained steady for lower priced condos and has increased for condos priced from $500,000 to $700,000. Median of sale prices increased by 11% compared to July of 2013 (see more details in Vero Beach Barrier Island Condos Real Estate Market Report July 2014).
Vero Beach Real Estate Market Analysis – July 2014
The Vero Beach real estate market for single family homes on the barrier island in July 2014 was not as active as in June with fewer sales and drop in sale prices. Demand however has remained steady for lower priced homes but keeps increasing for homes priced from $600,000 to $700,000.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 8/2/2014. Data believed to be accurate but not guaranteed.
We continue seeing interest in waterfront homes as second or vacation home buyers are replacing the investors of the previous 2 years. The improved economy, the lifting of the strict lending environment and the proliferation of low interest and mortgage rates has changed the public’s sentiment towards housing and especially for vacation homes (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report July 2014).
Overall Housing Market – July 2014
The increase in mortgage rates we saw in 3rd quarter of 2013 has tapered off in 2014 as the rate of increases has been revised downwards from previous projections. The low mortgage rate environment bodes well for Vero Beach Real Estate Market with possible increase in sales as we exit the summer season.
DATA DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – July 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 – July 2014.
Nationally, the existing home sales show a dip in Q1 of 2014, with an increase in activity the rest of 2014 and leveling off in 2015. Vero Beach real estate market did not follow this trend, with strong sales in Q1 and Q2 of 2014. However, the rate of increase is projected to slow and follow the national trend.
Sellers need to keep a close eye on the sales and price action during the summer months and prepare 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.