A review of the Vero Beach Real Estate market in 2022 shows a 2 faced market, with the great action of 2021 carrying over into the first half of 2022 with most areas been in Sellers Market with buyers actively looking for a home in Vero Beach Florida.
However, the rising inflation and the FED’s aggressive action towards raising rates affecting mortgage rates, the lack of inventory and the jump in home prices, affected the overall housing market the second half of 2022. These actions also had an impact on the Vero Beach Real Estate Market as we’ll cover in the next sections.
Market activity was below average on the barrier island and on the mainland especially the second half of the year as inventory was increasing while sales were decreasing. Despite these issues, the sale prices increased compared to last year and are stabilizing in time for the upcoming traditionally strong season when people are flocking to Florida and Vero Beach.
Overall in 2022 sales decreased by 32% compared to 2021 but the median of sale prices increased by 34% compared the same period last year. However, the big price increase can be attributed to lack of inventory during the first half of the year.
Vero Beach Real Estate Market Analysis – Barrier Island
The following chart shows the median of sale prices in for Single Family Homes in Vero Beach Barrier Island for the whole 2022 year (January to December). The median of sale prices in December 2022 was $1,500,000 compared to $949,000 in 2021, an increase of 58% as shown in the chart below.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
The reader can observe that the prices are slightly trending up but stabilizing towards the end of 2022. It is also noticeable the trend of the Inventory (homes for sale) to Sales ratio is widening towards the end of 2022 as more single family homes were available for sale but fewer homes were sold.
The following chart of Single Family Homes for Sale versus Pending Sales clearly illustrates the market shift between the beginning of the year and year-end.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
Let’s now look at the following chart of the median of sale prices for Condos in Vero Beach Barrier island for the whole 2022 year (January to December). The median of sale prices in December 2022 was $775,000 compared to $555,000 in 2021, an increase of 39.6% as shown in the chart below.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
The reader can observe that although prices are trending up have been stabilizing towards the end of 2022. It is also noticeable that similarly to single family homes, the trend of the Inventory (condos for sale) to sales ratio is widening towards the end of 2022 as more condos were available for sale and fewer condos were sold.
Similarly to the chart of Single Family Homes for Sale versus Pending Sales, the following chart for Condos on the barrier island clearly shows this divergence showing the market shift.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
Vero Beach Real Estate Market Analysis – Mainland
Sale prices in Vero Beach mainland continue to appreciate and increased by 6.7% in December 2022 compared to the same period in 2021 with a median sale price of $320,000 . The chart below of the median of sale prices in Vero Beach Mainland Real Estate Market shows that sale prices were trending up throughout 2022.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
The above chart tells the same story as the charts of the barrier island. Also, the trend of Homes for Sale to Sales ratio is widening towards the end of 2022 as more Vero Beach Mainland homes were available for sale and fewer condos were sold.
Similarly to the other charts of Homes for Sale versus Pending Sales, the following chart for homes on the mainland clearly shows this divergence showing the market shift by observing the “Linear for Sale” arrow pointing up while the “Linear Pending” arrow is pointing down having crossed each other in August 2022.
DATA SOURCE: MLS data as of 1/2/2023. Data believed to be accurate but not guaranteed.
Overall Housing Market – Last 12 Months & 2023 Projections
Mortgage rates increased dramatically in 2022 due to FED’s tightening effort. However, the experts expect that rates will stabilize and start to decline in 2023 as the following chart shows.
Existing Home Sale Prices are expected to level off but the experts still showing a slight appreciation with a 4.4% increase in the South including Florida as the following charts shows.
Existing Home Inventory levels are expected to increase in several US regions with an estimated increase of 6.3% in Florida as the following graph shows.
Here in Vero Beach we will expect a continuing increase in inventory as the winter season gets under way.
The following chart shows the New Homes inventory levels the last 12 months at a national level.
New construction in several communities in Vero Beach continues on the mainland and also on the island especially for high-end homes.
Detailed Vero Beach Real Estate Market Reports for specific areas or neighborhoods are provided to my clients. These reports offer local 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.
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