The Vero Beach real estate market continues strong in post season in May 2014. The increase in real estate market activity for high priced homes on the barrier island in Vero Beach is driving prices higher. However, this trend was not observed on the mainland which may indicate that buyers’ interests have shifted towards homes close to the beach.
Vero Beach real estate market was very active in May of 2014, but as the season ended we saw a 9.3% decrease in sales compared to April and 12% decrease from the same period in 2013. Inventory was slightly decreased by 7.2% in May compared to April and remained at almost the same levels as in 2013.
We need to see a continuation of reduction in the inventory the rest of 2014 and more sales to sustain price appreciation moving forward. We will monitor the Vero Beach real estate market and will update our clients with special reports.
Vero Beach Real Estate Market Highlights – May 2014
The Median of home values increased by an average of 5.3% from the same time the previous year , mainly due to more sales of higher priced homes, but we saw some slight price depreciation on the mainland (see the chart below of Vero Beach Mainland Real Estate Market), indicating that price appreciation has taken a break and sale prices have started to decrease.
DATA SOURCE: MLS data as of 6/2/2014. Data believed to be accurate but not guaranteed.
Sales in May on the mainland decreased by 6.7% and the inventory was slightly decreased by 4.8%compared to April(see more details in Vero Beach Mainland Real Estate Market Report May 2014).
The real estate market on the barrier island in Vero Beach in May showed continued strength. May was another good month for condos on the barrier island as we saw a 13% increase in sales compared to the same period in 2013. The demand remained steady for lower priced condos and has increased for condos priced from $500,000 to $700,000 as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 6/2/2014. Data believed to be accurate but not guaranteed.
The market of Vero Beach island condos is very active below $300,000 and in the $500,000 to $550,000 price ranges. The average sale prices increased in May by 12% compared to a year ago (see more details in Vero Beach Barrier Island Condos Real Estate Market Report May 2014).
Vero Beach Real Estate Market Analysis – May 2014
In May we saw a continuation in market activity with more sales than in April but at lower level than last year. The demand has remained steady for lower priced homes but has increased for homes priced from $600,000 to $700,000. The demand for homes in the higher price range is increasing meaning that the market is getting better for those price ranges. However, home sales in May 2014 were 18% lower than the same period in 2013.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 6/2/2014. Data believed to be accurate but not guaranteed.
Sale prices are on the uptrend and can be contributed to the increase in sales of higher-end homes, and homes in the $600,000 to $700,000 where the inventory is lower (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report May 2014).
Overall Housing Market – May 2014
The increase in mortgage rates we saw in 3rd quarter of 2013 is projected to taper off in 2014 as the rate of increases has been revised to show much lower levels from previous projections. The stabilization of mortgage rates bodes well for Vero Beach Real Estate Market with possible increase in sales for the rest of the year.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – May 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 – May 2014.
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. The Vero Beach real estate market did not follow this trend, with strong sales in Q1 2014. However, the rate of increase is projected to slow and follow the national trend. We will keep a close eye on this trend and will notify our subscribers through special updates.
Sellers need to keep a close eye on the sales and price action the next couple of months and prepare to negotiate offers in the post season.
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.