Vero Beach real estate market report for September shows the market took a break from the strong showing this summer. The fall started this September with fewer sales and slight increase in inventory in all Vero Beach real estate markets. The recent increases in interest rates and decreases in mortgage application may signal a slowdown in housing recovery.
However, price appreciation is still on the rise in all Vero Beach real estate markets in mainland and on the barrier island. We are going to monitor these trends closely and will alert our clients.
In September 2013, we saw a 2.5% increase in inventory and a 4.4% increase in median sale prices from August, indicating that the demand for Vero Beach real estate is still intact.
Home sales in September 2013 have increased by 27.8% compared to the same period in 2012.
Real Estate Market Highlights
The median home price for homes in Vero Beach mainland increased by 3.8% in September from the same time the previous year (see the chart below).
DATA SOURCE: MLS data as of 10/2/2013. Data believed to be accurate but not guaranteed.
Total home sales for September 2013 were 20% higher than the same month last year. The inventory has remained at the same level and there is a steady demand for homes in Vero Beach mainland. (see more details in Vero Beach Mainland Real Estate Market Report September 2013).
The real estate market on the barrier island in Vero Beach has been improving the last few months both for single family homes and condos, as the following chart of Vero Beach barrier island condos shows.
DATA SOURCE: MLS data as of 10/2/2013. Data believed to be accurate but not guaranteed.
Total condominium sales in September 2013 were 16.7% higher than in September of last year, and 20% higher than the previous month. This month we saw a slight increase in inventory as shown in the chart above, but the current demand has resulted in some price appreciation.
The good news is that the market of Vero Beach island condos is getting more active and is improving and sellers market has been formed in some price ranges (see more details in Vero Beach Barrier Island Condos Real Estate Market Report September 2013).
Real Estate Market Analysis
More single family homes on the barrier island have been sold year to date than the same period last year. Total home sales for September 2013 was more than twice the number of last year even though we entered the seasonally adjusted rate of sales. Inventory continues to decline but it is still at a level that sustains buyer’s market condition in many price ranges. 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 10/2/2013. Data believed to be accurate but not guaranteed.
The sale prices are bottoming and started to appreciate). Notice the trend of average sale prices is slightly accenting the last 6 months (see more details in Vero Beach Barrier Island Single Family Real Estate Market Report September 2013).
Overall Housing Market
The increase in mortgage rates is expected to continue in the 3rd quarter of 2013 and into 2014. as the chart below illustrates.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – September 2013.
Mortgage rates increases have encouraged buyers to jump into the market to take advantage of historically lows interest rates when the interest rates are still at historic lows. 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 – September 2013.
The housing recovery took a break in 2nd quarter of 2013 and is expected to continue in 4th quarter of 2013 and into 2014. This is great news for the real estate market indicating that the housing recovery is well established and is expected to continue. 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.