The Vero Beach real estate market is getting ready for the 2015 season with higher prices and slight increase in inventory the month of November 2014. The Vero Beach real estate market for high end homes and condos is still active on the barrier island.
The inventory of homes available for sale in Vero Beach has increased by 1.6% from October but it is 11.1% lower than the same period last year. The market activity in December will give us clues as to the strength of the market as we enter the 2015 winter season.
Vero Beach Real Estate Market Highlights – November 2014
Median of home values for November 2014 increased by 11.8% from the same period in 2013. (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 12/2/2014. Data believed to be accurate but not guaranteed.
However, Home sales for November 2014 were 30% lower than in October and 2% lower compared to the same period in 2013. The increase in inventory and the reduction in sales may put some pressure in price appreciation moving forward (see more details in Vero Beach Mainland Real Estate Market Report November 2014).
The market activity for condos on the barrier island slowed down in November as we saw a 40% reduction in sales compared to last month and the same period last year. Sale prices have stabilized and marginally increased compared to the same period in 2013 as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 12/2/2014. Data believed to be accurate but not guaranteed.
Demand has remained steady for lower priced condos and has increased for condos priced from $500,000 to $550,000 (see more details in Vero Beach Barrier Island Condos Real Estate Market Report November 2014).
Vero Beach Real Estate Market Analysis – November 2014
The Vero Beach real estate market for single family homes on the barrier island in November 2014 was active. Sale prices have marginally increased compared to 2013. The inventory remains almost at lower levels than the last 3 years and is scarce in certain areas and price ranges.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 12/2/2014. Data believed to be accurate but not guaranteed.
The demand has remained steady for lower priced homes and has increased for homes priced from $500,000 to $550,000 and $600,000 to $650,000 price ranges (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report November 2014).
Overall Housing Market – November 2014
The increase in mortgage rates we saw in 3rd quarter of 2013 has tapered off in 2014 and the rate of increases continue to be revised to show much lower levels from previous projections. The continuation of low mortgage rates into 2015 will have a positive impact to Vero Beach Real Estate Market with possible increase in sales during the 2015 winter months.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – November 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 – November 2014.
Nationally, the existing home sales show a dip in Q1 of 2014, with an increase in activity the rest of 2014. The market activity is projected to level off in 2015. The Vero Beach real estate market did not follow this trend, with strong sales in Q1 to Q3 of 2014. However, the rate of increase slowed down during the summer up to the month of November with fewer sales in all areas.
Sellers need to keep a close eye on the sales and price action in December and prepare to properly position their homes with the market trend.
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.