It was a tale of two different markets in Vero Beach Real Estate in November 2017 with a red hot real estate market on the mainland and a lagging one on the barrier island. The difference in these two markets was observed early this year but it was exaggerated post hurricane Irma. Overall sales declined by 10% as sales prices increased compared the same period last year but stabilizing. The market for high-end homes on the barrier island continues to attract buyers, but this is the only game on the island recently.
The difference in the real estate market between Vero Beach mainland and the barrier island can be seen by looking at the sales this month of condos and single family homes on the island compared to last month and last year. Sales of homes on the barrier island in November 2017 were anemic and declined by 51% compared to October and 56% compared to the same period in 2016.
Vero Beach Real Estate Market Highlights – November 2017
The following chart shows the median of sale prices in Vero Beach Florida for the month of November 2017.
DATA SOURCE: MLS data as of 12/2/2017. Data believed to be accurate but not guaranteed.
The reader can observe that the prices are stabilizing.
The real estate market activity continues to vary by location and price range. Sale prices in Vero Beach mainland have stabilized and managed a 5% increase with a median sale price of $190,000, but strong demand and low inventory may keep pushing prices higher as shown on the chart below of the median of sale prices in Vero Beach Mainland Real Estate Market for the last 12 months.
DATA SOURCE: MLS data as of 12/2/2017. Data believed to be accurate but not guaranteed.
Sales managed a small increase of 3% compared to the same period last year. Seller’s market continues for price ranges up to $300,000. Demand for homes on the mainland remains strong and the migration of barrier island residents to the mainland continues.
The real estate market for condos on the island in Vero Beach was slow in November 2017 with 25% fewer sales compared to the same period in 2016 however, median of sale prices increased by 40% in November 2017 compared to the same period last year, mainly due to sales of high-end condos as shown in the following chart of the median of sale prices of condos in Vero Beach Barrier Island.
DATA SOURCE: MLS data as of 12/2/2017. Data believed to be accurate but not guaranteed.
Seller’s market continues below $300,000 and the market is active for condos priced between $550,000 and $650,000 as buyers are still looking for that special condo on the island. Sales remain subdued the last 2 months an early indication of market fatigue and possibly price to value out of balance.
Vero Beach Real Estate Market Analysis – November 2017
The real estate market activity for single family homes on the Vero Beach barrier island was anemic with only 9 sales in November 2017. However the barrier island continues to continues to draw buyers for high priced and luxury homes.
The increase in sale prices by 38% is attributed to the sales of high-end homes and do not reflect the actual market condition which shows weakness especially in some price ranges which were very active last year. The following chart shows the price action and trend for single family homes in Vero Beach Barrier Island the last 12 months.
DATA SOURCE: MLS data as of 12/2/2017. Data believed to be accurate but not guaranteed.
There were 359 homes for sale with 51 pending contracts and Pending Ratio of only 14% (a good ratio is over 50%). The good news is that Pending Sales increased by 5% compared to the same period last year.
Overall Housing Market – November 2017
Mortgage rates increased slightly the 2nd half of 2017. However with the recent interest rate increases by the Fed and the improving economy, we will eventually see slow increases in mortgage rates. However, the experts expect that rates will slowly increase but remain low in 2018 and all the way into 2019 which is good news for buyers and sellers of Vero Beach real estate.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Mortgage Rates Forecast – November 2017.
The chart below shows the Fannie Mae Existing Home Sales for Single Family Homes, Condos and Co-Ops from the beginning of 2017 to present and the projections all the way to 2019.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Existing Home Sales & Forecast – November 2017.
Existing homes sales have been flat the last 6 months and the expectations by the experts is that demand will subside until 1Q of 2018. However, the expectation is that we should see some improvement in existing home sales in 2018 starting the 2nd quarter. The Vero Beach real estate market was impacted by hurricane Irma with fewer sales in Irma with fewer sales in September and October, but sales were very weak in November compared to 2016.
The following chart shows that Little has changed in the projections by the experts regarding new construction as demand for new homes is steady and demand for new homes will continue but at slower pace the rest of 2017 with some improvement in 2018.
DATA SOURCE Fannie Mae: Economic and Strategic Research; Housing Starts Forecast – November 2017.
New construction in several communities in Vero Beach continues on the mainland and on the island providing more options to buyers of entry level homes as well as luxury homes which is good news for the market as we are entering the 2018 winter season..
Detailed Vero Beach Real Estate Market Reports are provided to my clients. These reports offer market insights and market statistics. If you are interested in Vero Beach real estate, use the request form below or call me at 772-532-0945.
For buyers I provide detailed market analysis specific to each area. For sellers, I can provide a complimentary no-obligation property price analysis consultation and use the request form below for your request.