Vero Beach real estate market activity continued strong post season in May 2015 with increases in sales and sale prices in some areas. Sales accelerated on the barrier island and slightly increased on the mainland in Vero Beach compared to the same period last year. Lack of inventory in some areas and price ranges has created a seller’s market.
The real estate market activity and pending sales during the summer months will give us a better view of the market’s strength for the rest of 2015.
Vero Beach Real Estate Market Highlights – May 2015
Overall the median of sales prices in May 2015 posted a slight decrease compared to the same period last year. Sales were strong on the mainland and for single family homes on the island despite lower inventory.The activity was not uniform in all segments of the Vero Beach real estate market as we saw differences in sales and price action. The strong market continues in Vero Beach mainland as sale prices are still appreciating and increased by 16% compared to the same period last year (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 6/2/2015. Data believed to be accurate but not guaranteed.
However, slightly fewer home sales occurred in May 2015 compared to the same period in 2014 affected by low inventory (see more details in Vero Beach Mainland Real Estate Market Report May 2015).
The real estate market for condos on Vero Beach Barrier Island took a break in May 2015 with decreases in sales and sale prices which have stabilized and slightly decreased as shown in the following chart of median of sale prices for Vero Beach barrier island condos.
DATA SOURCE: MLS data as of 6/2/2015. Data believed to be accurate but not guaranteed.
Seller’s market continues below $400,000 and in $500,000 to $550,000 price ranges and in all areas except North Beach (see more details in Vero Beach Barrier Island Condos Real Estate Market Report May 2015).
Vero Beach Real Estate Market Analysis – May 2015
Sales for single family homes on the increased by 19% in May 2015 despite the lower inventory. Median of sale prices have stabilized but decreased by 8.2% compared to the same period last year. The inventory continues to decline which may impact sale prices for the rest of 2015.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 6/2/2015. Data believed to be accurate but not guaranteed.
The demand remained steady for lower priced homes but keeps increasing for homes priced from $700,000 to $750,000 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report May 2015).
Overall Housing Market – May 2015
The mortgage rates remained low in last quarter of 2014 and the beginning of 2015 as the rate of increases continue to show lower levels. The projection for the rest of 2015 and in 2016 show that rates will remain at low levels which is good news for the Vero Beach Real Estate Market with possible increase in sales through the rest of 2015 as buyers have been taking advantage of historic low mortgage rates.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – May 2015.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from 2014 to present and the projections for the rest of 2015 and 2016.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – May 2015.
Nationally, the existing home sales increased sharply in Q3 of 2014, but leveled off and dropped in Q1into 2015. This activity is projected to start increasing in Q2 2015 and into 2016. This activity is projected to start increasing in Q2 2015 and into 2016. The sales activity was strong for the Vero Beach real estate market during the 2015 season with increase in sales this May.
The buyers appetite for homes in Vero Beach is still intact and demand for newer homes continues strong as newer projects are in the works.
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.