Vero Beach real estate market started 2014 with a strong showing. The increase in Vero Beach real estate market activity and inventory in January 2014 will provide the fuel for more sales as the winter season gets into full swing. A jump in sales may indicate a renewed interest in real estate by people that have visited Vero Beach to escape the harsh winter that has blasted the northern states this season.
Vero Beach real estate market activity the 1st quarter of 2014 will determine the strength of Vero Beach market during the coming months. We will monitor the Vero Beach real estate market and will update our clients with special reports.
In January 2014, we saw a 38.1% increase in sales the same period in 2013, indicating that the demand for Vero Beach real estate is getting stronger as we entered 2014.
Vero Beach Real Estate Market Highlights
The Median of home values has increased 6.4% from the same time the previous year , but tapered off this January (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 2/2/2014. Data believed to be accurate but not guaranteed.
Sales in January 2014 also jumped by 34.4% compared to the same period in 2013. Inventory also increased by 4.4 from December and 10.5% from the same period last year (see more details in Vero Beach Mainland Real Estate Market Report January 2014).
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 2/2/2014. Data believed to be accurate but not guaranteed.
The number of condominium units sold in January 2014 increased by 41% compared to the same period in 2013. This month we saw a slight increase 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 sale prices increased in January and were 38% higher than last year indicating increased appetite for well priced condos (see more details in Vero Beach Barrier Island Condos Real Estate Market Report January 2014).
Vero Beach Real Estate Market Analysis
In January 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. 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 $650,000 price ranges.Total home sales in January 2014 were lower than last month but 60% higher than the same time last year. The market has changed and has entered a stabilization period with some 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 2/2/2014. 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 January 2014).
Overall Housing Market
The increase in interest rates we saw in 4th quarter of 2013 is projected to continue in 2014 albeit is less aggressive fashion as the chart below illustrates.The increase in mortgage rates we saw in second half 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 – January 2014.
The continuation of the reduction in mortgage rates may have sparked some buying interest as the recent increase in sales. However the projections for 2014 have been drastically revised projecting fewer sales than was originally anticipated.
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 – January 2014.
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.