Vero Beach real estate market cooled off in October 2013 showing signs of slowing down from the strong showing during the season and summer. Fewer sales, increases in inventory and diminishing appetite from investors may be contributing to the slowdown in Vero Beach real estate market in the fall.
The recent increases in mortgage rates and decreases in mortgage originations may also signal a slowdown in housing recovery. We are going to monitor these trends closely and will alert our clients.
In October2013, we saw a 10.8% increase in inventory and a 6.2% reduction in sales from September, indicating that the demand for Vero Beach real estate has waned as we entered the fall season.
Vero Beach Real Estate Market Highlights
The median home price for homes in Vero Beach mainland increased by 13% in October from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 11/2/2013. Data believed to be accurate but not guaranteed.
Total home sales in October 2013 were 12.2% lower than the same month last year. The inventory also increased by 15% from September and reached the same level as the same period last year (see more details in Vero Beach Mainland Real Estate Market Report October 2013).
The real estate market on the barrier island in Vero Beach that had been very active during the season and the summer has been cooling off the last 2 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 11/2/2013. Data believed to be accurate but not guaranteed.
The number of condominium units sold in October of 2013 decreased by 43% compared to September and 29.5% compared to the same period in 2012, . This month we saw a slight increase, 5%, in inventory as shown in the chart above.
The good news is that the market of Vero Beach island condos is getting more active below $200,000 price point and is improving in $200,000 to $250,000 and $400,000 to $450,000 price ranges. (see more details in Vero Beach Barrier Island Condos Real Estate Market Report October 2013).
Vero Beach Real Estate Market Analysis
In October we saw a stagnant market for single family homes on the barrier island in Vero Beach real estate market, with slight price depreciation compared to last month. The demand has also cooled off. However, there are price points where the demand is greater that the supply and a seller’s market up to $350,000, $500,000 to $550,000 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 11/2/2013. Data believed to be accurate but not guaranteed.
The sale prices may have started to slowly appreciate). Notice that median of sale prices are fluctuating around the average the last 8 month (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report October 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.
DDATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – October 2013.
Along with the interest rate increases, we have started seeing decreases in mortgage originations indicating that fewer buyers are entering the market. Mortgage rate increases have historically slowed down the pace of the housing recovery and we have started seen in here in Vero Beach real estate 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.
We are in the early stages of a good run in the housing market and a jump in existing home sales 3rd quarter of 2013. This was the case here in Vero Beach real estate market when we saw an increase in sales that last 3 quarters and the last 2 months. The jump in existing home sales we see at the national level has not been observed in Vero Beach market, which saw a mild deceleration of activity. We are keeping a close eye on the mortgage market and we’ll notify our subscribers.
Sellers Sellers need to keep a close eye on this development 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.
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