Vero Beach real estate market ends 2013 by showing strength in December as the market is entering the winter season. A jump in sales may indicate a renewed interest in real estate by people that want to make Vero Beach home or destination to escape the harsh winters of the northern states and enjoy the warm Florida sun.
As we enter the seasonally strong winter months, the activity will determine the strength of Vero Beach real estate market during the coming months. We will monitor the market and will update our clients with special reports.
In December 2013, we saw a 38.6% increase in sales and a 2.8% increase in inventory from November, indicating that the demand for Vero Beach real estate is getting stronger as we enter 2014.
Vero Beach Real Estate Market Highlights
The Median of home values has increased 8.5% from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 1/2/2014. Data believed to be accurate but not guaranteed.
Sales jumped by 40% compared to November and 34% compared to the same period in 2012. Inventory also increased by 2.8% from November and exceeded the level as the same period last year (see more details in Vero Beach Mainland Real Estate Market Report December 2013).
The real estate market on the barrier island in Vero Beach also bounced back with more sales and price appreciation. The inventory level still remains high while sales remain steady as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 1/2/2014. Data believed to be accurate but not guaranteed.
The number of condominium units sold in December of 2013 increased by 20% compared to the same period in 2012 and also to November. This month we saw a slight increase of 1.6% in inventory as shown in the chart above. The inventory has been increasing the last 4 months.
The good news is that the market of Vero Beach island condos is very active below $300,000 price point and the average sale prices jumped by 59% higher than last year indicating increased appetite for higher priced condos (see more details in Vero Beach Barrier Island Condos Real Estate Market Report December 2013).
Vero Beach Real Estate Market Analysis
In December we saw a pickup in market activity with higher sale prices compared to last month and last year. The demand remained steady for lower priced homes and has increased for homes priced above $600K and a seller’s market up to $350,000 and $600,000 to $700,000 price ranges.Total home sales for December 2013 were slightly higher than last month but lower than the same time last year. The market has changed and is entering a stabilization period with slight price appreciation. 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 1/2/2014. Data believed to be accurate but not guaranteed.
Sale prices have started to appreciate again. The jump in sale prices is contributed to increase in sales of higher-end homes (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report December 2013).
Overall Housing Market
The increase in interest rates we saw in 3rd quarter of 2013 is projected to continue in 2014 albeit is less aggressive fashion as the chart below illustrates.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – December 2013.
The increase in mortgage rates we saw in 3rd quarter of 2013 is projected to continue in 2014 but the rate of increase has been revised to show much lower levels from previous projections. This revised activity may spark another round of buying activity and increases in sales in Vero Beach as the season gets into full swing.
The continuation of the reduction in mortgage rates may have sparked some buying interest as the recent increase in sales. The projections for 2014 show a mild increase in existing home sales which will be assisted by the deceleration of new construction as projected by the experts.
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 – December 2013.
We are keeping a close eye on existing home sales activity and the mortgage market and we’ll notify our subscribers.
Sellers need to keep a close eye on the sales and price action and prepare to negotiate offers.
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.