The Vero Beach real estate market strengthened with feverish speed in March. Particularly strong was the real estate market in Vero Beach mainland, with pending sales exceeding the 50% mark and declining months of inventory indicating strong demand for housing and a seller’s market in many areas.
Fewer homes entered the market in March creating an inventory squeeze causing buyers to jump into action for homes that are priced well. Multiple offers are getting back into the picture indicating that the housing recovery is real and well underway. Buyers and those that have arrived in Vero Beach as part of their winter migration to Florida are finding that is more difficult to locate the right property and the need to be more flexible.
There were 1575 single family homes and condos for sale in February of 2013. The number of homes for sale in March was 1540, a 3% decrease in inventory. Sales on the other hand went up from 163 home sales in February 2013 to 249 homes that were sold in March, a 52.8% increase 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 7.7% higher in March than the same time the prior year (see the chart below).
DATA SOURCE: MLS data as of 4/3/2013. 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 $250,000 (see more details in Vero Beach Mainland Real Estate Market Report March 2013).
The real estate market on the barrier island in Vero Beach however is not as strong as the following chart of the median sale prices for condominiums on the island shows.
DATA SOURCE: MLS data as of 4/3/2013. 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 $250K – $300K and improving between $400K – $450K price range (see more details in Vero Beach Barrier Island Condos Real Estate Market Report March 2013).
Real Estate Market Analysis
Sales of single family homes on the barrier island in Vero Beach increased by 44% in March compared to February. Inventory remains flat for the last few months but still at levels that sustains 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 4/3/2013. Data believed to be accurate but not guaranteed.
The number of sales for the last 12 months has been steady but we saw a 44% increase in sales compared to the previous month (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report March 2013).
Overall Housing Market
The chart below shows the Fannie Mae new housing starts and Sales Forecast for Single Family Homes from 2012 to 2013 and the projections for 2014.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – March 2013
According to the experts, the recovery of the housing market continues throughout 2013 and shows acceleration in 2014. The market took a break in January with fewer sales but as the chart shows, it picks up speed in 1st quarter of 2013. Evidence of that can be seen here in Vero Beach real estate market when we saw increase in sales in all areas in March 2013.
Vero Beach home buyers are also taking advantage of the historic low mortgage rates to secure financing which is a smart decision since rates are projected to continue going higher the rest of 2013 and 2014 by the experts as shown in the chart below.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – March 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.