In February 2017, the Vero Beach real estate market was not as robust as during the same period in 2016 as sales remained flat. Buyer fatigue was evident on the island with lackluster sales and decrease in sale prices. The real estate market on the mainland continues to outperform the market on the island.
The real estate market activity for homes on the island in February 2017, both single family and condos was slower than the previous year. Buyers were more hesitant to commit to the purchase as homes sat on the market much longer with an average Days On the Market (DOM) of 176 days, 26% longer than the same period last year. However, Pending Sales increased slightly by 4.5% a welcome sign for the market moving forward.
In February 2017 Vero Beach sale prices were slightly declined by 3.8% compared to the same period in 2016 but increased by 6.2% compared to January. Inventory remained at almost the same levels as in 2016.
Vero Beach Real Estate Market Highlights – February 2017
The real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland continue to stabilize but still managed an 6.7% increase compared to the same period last year as shown on the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the last 12 months.
DATA SOURCE: MLS data as of 3/2/2017. Data believed to be accurate but not guaranteed.
Seller’s market continues for price ranges up to $250,000 (see more details in
Vero Beach Mainland Real Estate Market Report February 2017).
The real estate market for condos on the island in Vero Beach in February 2017 remained flat compared to the same period in 2016 but the good news was that sale prices have stopped declining and managed an increase of 14% compared to the same period last year as shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 3/2/2017. Data believed to be accurate but not guaranteed.
Seller’s market continues below $300,000, and in $700,000 to $900,000 price ranges as buyers got an appetite for high end condos on the island (see more details in
Vero Beach Barrier Island Condos Real Estate Market Report February 2017).
Vero Beach Real Estate Market Analysis – February 2017
The real estate market for single family homes on the Vero Beach barrier island continue to soften as median of sale prices decreased by 14% compared to the same period in 2016, indicating that buyers are not as willing to make offers. A good sign for the market of single family homes on the island as we move deep into the season, is that Pending sales increased 25% compared to the same period last year.
The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island the last 12 months.
DATA SOURCE: MLS data as of 3/2/2017. Data believed to be accurate but not guaranteed.
Demand for homes up to $450,000 is intact, however has been reduced for homes in price ranges that were previously in high demand (see more details in
Vero Beach Barrier Island Single Family Real Estate Market Report February 2017).
Overall Housing Market – February 2017
Mortgage rates have increased the last couple of months and increased by half a percentage point post elections. It is expected that the Fed will raise interest rates as the economy improving in 2017. However, the projections by the experts continue to show that rates will remain below 4.5% all the way to 2018 which is good news for buyers and sellers of Vero Beach real estate.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – February 2017.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2016 to present and the projections all the way to 2018.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – February 2017.
Existing homes sales have been flat the last few months. The projection by the experts on the market activity for existing homes shows steady activity the next few quarters throughout 2017 they have changed to show some acceleration towards the end of 2018. The Vero Beach real estate market follows a similar trend in all areas the first half of 2017 as the market has soften lately . We need to see more data before we can make a prediction for rest of 2017.
The following chart shows that demand for new construction is slowing down but the projections by the experts indicate that demand for new homes will continue the rest of 2017 and into 2018 albeit at a slower pace. New construction in several communities on the mainland and luxury single family homes and condos on the island in Vero Beach s ongoing and continues to provide options to buyers.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – February 2017.
New construction in several communities on the mainland and luxury homes on the island in Vero Beach continues to provide more options to buyers..
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