May was a strong month for Vero Beach Real Estate Market with increases in sales and contracts pending with seller’s market in many areas and price points. The real estate market in Vero Beach mainland continued its strong performance, with a 21.5% increase in sales and a 6.5% reduction in inventory indicating that the demand for housing is strong.
Fewer homes entered the market in May continuing the trend that started the beginning of this year with lower inventory with buyers having fewer homes to choose from resulting in multiple offers for properties that are priced well. There was a 37% jump in sales of single family homes on the Barrier Island in Vero Beach.
In May, there were 1370 single family homes and condos for sale in May of 2013 compared with 1459 in April, a 6.5% decrease in inventory. Home sales increased by 13.8% from 239 in April 2013 to 272 in May. Low inventory levels in some areas and price ranges has increased demand and home prices have started 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 increased by 21.7% in May from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 6/3/2013. Data believed to be accurate but not guaranteed.
The chart shows a steady increase in home prices the last 12 months. The real estate market was strong for homes priced below $350,000, and a seller’s market (see more details in Vero Beach Mainland Real Estate Market Report May 2013).
The real estate market on the barrier island in Vero Beach however is not as strong, but has improved the last 3 months. There are signs of improvement in some areas and price ranges on the barrier island as evidenced in the following chart of the median sale prices for condominiums.
DATA SOURCE: MLS data as of 6/3/2013. Data believed to be accurate but not guaranteed.
The chart shows that sale prices are stabilizing and forming a bottom. Sale prices are going up with an average of 9% the last 4 month. The good news is that the market of Vero Beach island condos is getting more active and is improving between $500K – $650K price range (see more details in Vero Beach Barrier Island Condos Real Estate Market Report May 2013).
Real Estate Market Analysis
Sales of single family homes on the barrier island in Vero Beach increased by 37.5% in May compared to April. Inventory started declining again after remaining flat for the last few months. The inventory 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 6/3/2013. Data believed to be accurate but not guaranteed.
We saw a 6% decrease in inventory from the previous month, and a 10% decrease from the same period last year (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report May 2013).
Overall Housing Market
According to the experts, the recovery of the housing market is real and is expected to continue throughout 2013 and 2014. 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 – May 2013
The market took a break in January with fewer sales but as predicted, picked up speed in 2nd quarter of 2013. Evidence of that can be seen here in Vero Beach real estate market when we saw increase in sales in many areas and improved market in many price ranges including in May 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; Mortgage Rates Forecast – April 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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