Vero Beach real estate market was active in February of 2014. The increase in Vero Beach real estate market activity was not enough to put a dent into the increasing inventory resulting in a price appreciation slowdown.
The market action the next couple of months will determine the strength of the market for the rest of 2014. We will monitor the Vero Beach real estate market and will update our clients with special reports.
In February2014, we saw a 15.3% increase in sales compared to January and an 8.3% increase from the same period in 2013, a trend that if continues will bode well for the Vero beach real estate market in 2014.
Vero Beach Real Estate Market Highlights
The median of home values has decreased by 4.5% from the same time the previous year , indicating that price appreciation has taken a break. (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 3/2/2014. Data believed to be accurate but not guaranteed.
Sales in February 2014 increased by 8.3% compared to the same period in 2013. Inventory also increased by 2.5% from the same period last year (see more details in Vero Beach Mainland Real Estate Market Report February 2014).
The real estate market on the barrier island in Vero Beach in February showed some strength with more sales compared to January and a slight 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 3/2/2014. Data believed to be accurate but not guaranteed.
The number of condominium units sold in January 2014 increased by 35% compared to January and 25% compared to the same period in 2013. This month we saw a slight decrease in inventory as shown in the chart above. The inventory has been increasing the last 5 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 increased in February by 32% than last year (see more details in Vero Beach Barrier Island Condos Real Estate Market Report February 2014).
Vero Beach Real Estate Market Analysis
In February we saw a pickup in market activity for single family homes on the barrier island with higher sale prices compared to last month and last year.In February we saw a pickup in market activity for single family homes on the barrier island with more sales than in the same time last year. The demand has remained steady for lower priced homes and has increased for homes priced from $550K to $700K. There are price points where the demand is greater that the supply, and a seller’s market.
Total home sales in February 2014 were 19.4% higher than the same time last year. 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 3/2/2014. Data believed to be accurate but not guaranteed.
Sale prices are on the uptrend and can be contributed to the increase in sales of higher-end homes (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report February 2014).
Overall Housing Market
The increase in interest rates we saw in 4th 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. These revised projections bode well for the real estate market with continuation of buying activity and increases in sales in Vero Beach during the season.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – February 2014.
This revised activity may spark another round of buying activity and increases in sales in Vero Beach as the season is in full swing.
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 2014 and 2015.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – February 2014 .
The projections for 2014 and 2015 show a mild increase in existing home sales. The rate of increase is projected to slow with the acceleration of new construction as projected by the experts . We will keep a close eye on this trend, and will notify our subscribers through special updates.
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.