The Vero Beach real estate market had a strong showing the 1st quarter of 2014. Vero Beach real estate market was very active in March of 2014. The increase in real estate market activity was not enough to put a serious dent into the inventory resulting in a price appreciation slowdown, especially in Vero Beach mainland.
The post season market action 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 March 2014, we saw a 27% increase in sales compared to February but 8.7% decrease from the same period in 2013. We need to see a continuation of strong sales the rest of 2014 to sustain price appreciation moving forward.
Vero Beach Real Estate Market Highlights – March 2014
The Median of home values increased slightly from the same time the previous year , indicating that price appreciation is slowing down (see the chart below of Vero Beach Mainland Real Estate Market).
DATA SOURCE: MLS data as of 4/2/2014. Data believed to be accurate but not guaranteed.
Sales in March 2014 33.8% compared to February but slightly decreased compared to the same period in 2013. Inventory also slightly decreased in March, but has increased by 26% the last 6 months(see more details in Vero Beach Mainland Real Estate Market Report March 2014).
The real estate market on the barrier island in Vero Beach in March showed some strength with more sales compared to February and a 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 4/2/2014. Data believed to be accurate but not guaranteed.
The number of condominium units sold in January 2014 increased by 39% compared to February and 23% compared to the same period in 2013. This month we saw a decrease in inventory as shown in the chart above. The inventory had been increasing for 5 months.
The good news is that the market of Vero Beach island condos is very active below $300,000 and in the $600,000 to $650,000 price points. The average sale prices increased in March by 24% compared to a year ago (see more details in Vero Beach Barrier Island Condos Real Estate Market Report March 2014).
Vero Beach Real Estate Market Analysis – March 2014
In March we saw a pickup in market activity but with fewer sales than February and the same time last year. Demand has remained steady for lower priced homes and has increased for homes priced from $600,000 to $700,000. There are price points where the demand is greater that the supply, and a seller’s market.Total home sales in March 2014 were lower than February and the same period 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 4/2/2014. 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 March 2014).
Overall Housing Market – March 2014
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, as the chart from Fannie Mae shows. This revised activity bodes well for Vero Beach Real Estate Market with possible increase in sales as the season progresses.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – March 2014.
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 – March 2014.
The revised projections for 2014 and 2015 show a dip in existing home sales the 1st quarter of 2014. The rate of increase is projected to slow with the acceleration of new construction as projected by the experts (refer to the previous slide). 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 the next couple of months and prepare to negotiate offers as the season is winding down.
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.