Vero Beach real estate market experienced a slowdown in November as the market prepares for the next season. Fewer sales, increases in inventory, diminishing appetite from investors and second home buyers have contributed to the slowdown of Vero Beach real estate market.
As the fall season progresses the health of the real estate market as we enter the new season will determine the activity during the winter and spring, where we traditionally see the strongest sales. We are monitoring these trends closely and will update our clients with special reports.
In November 2013, we saw a 4.9% increase in inventory and a 18.2% reduction in sales from October, indicating that the demand for Vero Beach real estate has waned during the fall season.
Vero Beach Real Estate Market Highlights
The median home price for homes in Vero Beach mainland decreased by 2.5% in November from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 12/2/2013. Data believed to be accurate but not guaranteed.
Total home sales in November 2013 were 15.5% lower than the same month last year. The inventory also increased by 5.2% from October and exceeded the level as the same period last year (see more details in Vero Beach Mainland Real Estate Market Report November 2013).
The real estate market on the barrier island in Vero Beach has also slowed down the last 3 months for both single family homes and condos, as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 12/2/2013. Data believed to be accurate but not guaranteed.
The number of condominium units sold in November of 2013 decreased by 21% compared to the same period in 2012, but 20% higher than October. This month we saw a slight increase of 3.8% in inventory as shown in the chart above. The inventory has been increasing the last 3 month.
The good news is that the market of Vero Beach island condos is very active below $300,000 price point and is improving in $400,000 to $450,000 and $600,000 to $650,000 price ranges. (see more details in Vero Beach Barrier Island Condos Real Estate Market Report November 2013).
Vero Beach Real Estate Market Analysis
In November we saw a slow market for single family homes on the barrier island in Vero Beach real estate market, with little price appreciation and 25% reduction in sales compared to previous month and decreased demand. However, there are price points where the demand is greater that the supply and a seller’s market up to $350,000 and $600,000 to $700,000 price ranges.On the barrier island in Vero Beach more single family homes were sold in October 2013 than the same period the last 3 last years. 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 12/2/2013. Data believed to be accurate but not guaranteed.
Total single home sales for November 2013 on the barrier island in Vero Beach were slightly higher than the same time last year and higher than 2010 and 2011.
The increase in sale prices may have taken a break and stabilizing). Notice that median of sale prices are fluctuating around the average the last 9 months (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report November 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 – November 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 approaches and gets into full swing.
The recent reduction in mortgage rates has not resulted in more sales mainly due to diminishing appetite from investors as fewer buyers have entered the 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 – October 2013.
The projections for the rest of 2013 and 2014 show a mild increase in existing home sales which will be assisted by the deceleration of new construction as projected by the experts. 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 recent trend 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.