The Vero Beach home values are increasing and the market was active in October 2015 with increases in sale prices which suggests a strong 2016 season. We experienced price increases for homes in both Vero Beach mainland and single family homes on the island, but prices for island condos are still decreasing, but stabilizing. We saw a slight increase in median of sale prices by 4.6% compared to the same period last year.
Sales on the other hand decreased by 10.5% compared to last year mainly due to low inventory in some desirable price ranges. However, more homes are entering the market which is a good sign as we are heading into the 2016 season.
Vero Beach Real Estate Market Highlights – October 2015
October 2015 was an active month for Vero Beach real estate but pending sales were decreased by 10.7% compared to the same period in 2014. Homes that are priced well continue to move quickly.
The Vero Beach real estate market activity varied by area and price range. Sale prices in Vero Beach mainland are still appreciating and increased by 12% compared to the same period last year (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 11/2/2015. Data believed to be accurate but not guaranteed.
Demand for homes on the mainland remains intact but we need to see more activity and more sales of higher price ranges (see more details in Vero Beach Mainland Real Estate Market Report October 2015).
The market for condos on the island was not as strong this month as we saw a decline in sales compared to September, but still 33% more that the same period last year. Sale prices continue to decline in October 2015 but are stabilizing as shown in the following chart of the median of sale prices for Vero Beach barrier island condos.
DATA SOURCE: MLS data as of 11/2/2015. Data believed to be accurate but not guaranteed.
Despite this decline in sale prices, the seller’s market continues below $350,000, in $400,000 to $450,000 and in $650,000 to $700,000 price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report October 2015).
Vero Beach Real Estate Market Analysis – October 2015
Sale prices for single family homes on the island have stabilized and continue to appreciate as they increased by 3.4% compared to the same period in 2014. The inventory continues to decline and remains at lower levels than the previous 3 years.
The following chart shows the 12 month price action and trend for single family homes in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 11/2/2015. Data believed to be accurate but not guaranteed.
The demand has remained steady for homes priced up to $500,000 and from $600,000 to $700,000 (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report October 2015).
Overall Housing Market – October 2015
Mortgage rates are expected to stay at low levels as the Fed is reluctant to raise rates in the current economic environment. The historically low mortgage rates have lured buyers into purchasing homes in Vero Beach and it is great news as we are headed for the busy winter season.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – October 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 – October 2015.
Nationally, the existing home sales increased sharply in Q3 of 2014, but leveled off and dropped in Q1 2015. The current projection by the experts has been revised to show continued market activity through the end of 2015 and into 2016. The sales activity has been strong year to date for the Vero Beach real estate market which is good news for those that are looking to put their homes on the market.
The chart below shows the Fannie Mae new housing starts and Sales Forecast for Single Family Homes from 2014 to present and the projections to end of 2016
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – October 2015.
Vero Beach follows the national trend as new construction on several communities is ongoing and development of new communities is under way and especially new development of luxury homes.
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.