The Vero Beach real estate market continues strong all summer long! August was another good month for the market with price appreciation, less inventory and seller’s market in many areas and price points. We have started to see a bit of a slow down the last couple of weeks, which may be attributed to families already settled in their new homes and the increases in mortgage rates.
Up to this point, we have seen a 21.2% reduction in inventory since the beginning of 2013 and a 6.63% increase in median sale prices, indicating that the demand for Vero Beach real estate is still strong.
Home sales in July have increased by 21.8% compared to the same period in 2012.
Real Estate Market Highlights
The median home price for homes in Vero Beach mainland increased by 9.8% in August from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 9/3/2013. Data believed to be accurate but not guaranteed.
Total home sales for August 2013 were 35.2% higher than the same month in 2012. The lower inventory level bodes well for the market in general and a steady demand for homes in Vero Beach mainland. (see more details in Vero Beach Mainland Real Estate Market Report August 2013).
The real estate market on the barrier island in Vero Beach although not as strong, it has been improving the last few months.
Total condominium sales in August 2013 were 30.7% higher than in August of last year, but lower than in July 2013. This month we saw a continuation of the reduction in inventory as shown in the following chart, but the current demand has not yet resulted in price appreciation at a rate we have seen in Vero Beach mainland.
DATA SOURCE: MLS data as of 9/3/2013. Data believed to be accurate but not guaranteed.
The good news is that the market of Vero Beach island condos is getting more active and is improving between $400,000 and $600,000 (see more details in Vero Beach Barrier Island Condos Real Estate Market Report August 2013).
Real Estate Market Analysis
More homes have been sold year to date than the same period last year. In particular we a 4.6% sales increase in 2013 from the same period last year. Inventory continues to decline but it is still at a level that sustains buyer’s market condition in many price ranges. The following chart shows the trends of price action in Vero Beach barrier island single family home market the last 12 months.
DATA SOURCE: MLS data as of 9/3/2013. Data believed to be accurate but not guaranteed.
The sale prices may have bottomed and have started to appreciate). Notice that median of sale prices are fluctuating around the slightly accenting average the last 6 months (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report August 2013).
Overall Housing Market
A jump in interest rates is expected for the 3rd quarter of 2013 and projected to continue into 2014. as the chart below illustrates.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – August 2013
Interest rates increase may also encourage buyers to jump into the market and start buying properties when the interest rates are still at historic lows. The jump in rates is projected to slow down the pace of the housing recovery.
A jump in interest rates is expected for the 3rd quarter of 2013 and projected to continue into 2014. The recent interest rates increases have encouraged buyers to jump into the market to take advantage of historically lows interest rates.
Interest rate increases have historically slowed down the pace of the housing recovery and we have started seen in here in Vero Beach real estate market. The chart below shows the Fannie Mae existing homes sales from 2012 to 2013 and sales forecast projections for 2014.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – August 2013
The market experts expect a decline in sales during the 3rd quarter of 2013 and with the sales to start increasing again the 4th quarter of 2013 and into 2014. We will keep a close eye on this trend, and will notify our subscribers through special updates.
Sellers Sellers need to keep a close eye on this development and prepare to negotiate offers
The decline in sales is not going to be as sharp the 3rd quarter of 2013 as expected by the expects (refer to last month’s report). The sales are expected to start increasing again the 4th quarter of 2013 and into 2014. We will keep a close eye on this trend, and will notify our subscribers through special updates.
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.