Vero Beach– Hutchinson Island Real Estate Market Update January 1, 2012

Inventory of houses and condos in the Vero Beach Florida Indian River County area moved down 5% from November 2011 and has declined 19% since the December 2010. Also since the high pointin January 2008, inventory has gone down 36%. Overall Indian Rivercounty-wide sales increased 1% compared last month and increased 11% over December 2010. County-wide sales have increased 13.8% over 2010. This increase took place while the median price only slipped 4%.

 

Total sales increased compared to 2010 in all Indian River categories and adjacent Hutchinson Island.

 

We believe that the inventory increase in the October and November was a result of Sellers listing their properties prior to the tourist season, which is the most active time of the year to sell. The decrease of inventory in December was a result of high sales, despite the seasonal new listings now on the market. Inventory is expected to continue to decline, which historically happens during the first 6 months of the year.

 

Cash sales comprised 59% of the total sales, which was down 10% from November. Distressed sales comprised 35% compared to 38% in November. Distressed sales include both short sales and bank-owned homes. We expect the demand for homes will continue to increase in the future.

 

The cost of owning a home is more affordable now than any time in the past 10 years. In many areas buying is now cheaper than renting. Low home prices and low mortgage rates create a once-in-a-lifetime opportunity for Buyers. In 2001 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, a buyer can get a $350,000 mortgage for the same monthly payment.Also the median price of a home in Floridaas a whole and theTreasureCoastis approximately the same. A 30 year mortgage in December of 2001 had a 7.28% interest rate. Today's rate is around 3.91%. The Federal Reserve indicates they will keep rates low through 2013. They did not say they will keep them at present levels, however. Expect mortgage rates to inch up in the coming months. Freddie Mac says the 30 year rate will be at mid 5% levels by mid 2013. However, those rates will still be good compared to historical rates. In 1981 the 30-year rates averaged more than 16 percent and did not get below 8% until around the year 2000.

 

Also, sales and prices should continue to rise because many baby boomers and retirees, who had put off moving to Floridain the last 5 to 6 years because of the economy, are now re-considering their move as the stock market inches up, and their savings accounts are being replenished. This group of potential buyers plus the normal retirees over the next few years will give the housing industry in Floridaa "double dose of sales."

 

The median price of houses in the Vero Beach Indian River County area increased 25% from $132,000 in November to $142,000 in December. This was approximately the same as December of 2010. We are now a little above average median price over the 3 years. This is good, indicating that prices are stabilizing. There were only 46 houses, 30%, that sold for under$100,000. During the 3rd Quarter of this year approximately 42% of the houses sold were under $100,000. This is the first time that the median has gone up for 3 consecutive months since 2005.

Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median also influenced by the number of high or low priced homes sold in a certain period. We have also noticed that more houses being sold are smaller in size than they were 4 or 5 years ago. This will also affect the median price.

 

 

 

House sales on the island in Vero Beach were 12% lower than last month and 29% lower than December of last year. However, remember that November sales of barrier island houses was the best in 8 years.

Year-to-date single family home sales on the island have increased 31.8% over last year.At the low end there was a 2 bedroom house on Coco Plum Lane that sold for $121,000, one on Sabal Palm Court that sold for $180,000, and one on Date Palm the sold for $280,000. At the high end, only one sale was over $1,000,000, down from 4 last month. This was a 5000+ sq ft house in the Anchor at the Moorings that sold for $1,050,000. Next in line was a 3500+ sq ft house in BermudaBaythat sold for $895,000. We expect a good selling season this winter and believe prices will hold for Island Houses, especially at the mid and high end.

BarrierIslandsingle family home inventory was down 2% over the previous month and should continue to fall during the season.

 

Single family home sales county-wide were down 2% compared to the previous month and down 5% compared to November of 2010. Year-to-date sales were up 13.9%.

On the mainland, there were 51 houses that sold for under $100,000, 27% lower than the previous month. Again most of these sales were in the south end and the northwest side of the county. The high sale was a canal front in Vero Isles at $440,000 and a 3500+ sq ft house inn Oak Harbor $510,000.

County-wide inventory of single family houses decreased 100 units from the previous month.

There is a 9.34 month supply of houses for sale on the mainland. This continues to fall and is lower than the overall county absorption rate, which is an indicator that lower priced and smaller properties are more in demand. Especially with the expected recapture of equity (appreciation) over the next few years, investment property in a low to mid priced house is expected to produce a small positive cash flow from the investment as rents are increasing.

Condo sales on the islandwere up 57% from the previous month, 11 vs 7, but were down 8% from December 2010, 11 vs 12. Year-to-date condo sales on the island are up 18% over last year. The highest sale this month was $935,000 in OrchidIslandand $800,000 in JohnsIsland. At the lower end, a Sea Oaks unit sold for $90,000 and one in Robles DelMar sold for $95,000. We expect a good selling season for Islandcondos this winter, especially at the mid and high end as inquires are increasing.

Inventory of condos on the island stayed level at 367units.

Condo sales county-widewere 14% higher than November but down 13% over December 2010. Year-to-date condo sales are 13.4% ahead of last year.

On the mainlandthe prices seem to be drifting up a little as the low end sales in Vista Royale/Gardens ranged from $25,500 for a 1 bedroom to $76,500 for a 2 bedroom unit. There were 7 sales in VistaRoyale/ VistaGardenswhich was down from earlier months. On the mainland at the high end, there was a sale in Vista Villas for $142,000 and one at HarmonyIslandin GrandHarborfor $145,000.

Inventory of mainland condos decreased to 690 units for sale from 721 the previous month.

There were 11 sales on NorthHutchinsonIslandin December.Sales increased over December 2010 by 10% and increased 10% over last month.

Year-to-date sales have increased by 45% over last year. Inventory of units listed for sale increased a little from 221 to 225. This inventory does not include the approximately 59 units for sale in a new condo development.

Condo sales ran from $120,000 for a 2nd floor 1500 sq ft unit in Atlantic View that was a distressed sale to $600,000 for a 2nd floor 2833 sq ft corner unit in Oceanique.

There was one single family canal home on Queen Bess that sold for $431,000. The high sales for the year were the 12 floor in the Paragon for $680,000 and a home in Queens Cove for $530,000.

Vero Beach - Hutchinson Island Real Estate Update

The median price of houses in the Vero Beach Indian River County area increased 25% from $108,000 in October to $132,000 in November. There was also a substantial 10% increase from November of 2010. We are now back close to the average median price over the 3 years. This is good, indicating that prices are stabilizing!

Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median also influenced by the number of high or low priced homes sold in a certain period. We have noticed that the size of more houses being sold are smaller than they were 4 or 5 years ago.

Inventory of houses and condos in the Vero Beach Florida Indian River County area moved up 9% from 2678 units for sale in October 2011 to 2702 in November. However, inventory has decreased 16.4% from November 2010. Overall county-wide sales decreased 2% compared with last month but increased 2% over November 2010. Year-to-date county-wide sales have increased 15.3% over 2010. Sales have increased year-to-date in all 5 categories including Hutchinson Island.

Since the peak inventory in January 2008, we have established a pattern. Inventory has peaked just after the first of the year when the tourist season starts and moves down through the first half of each year to bottom out in midsummer, and then start to rise again. In the last 3 years, the increase in inventory has been quick to turn up after the winter season sales, but this year inventory continued to fall until October, which was the first month of inventory increase this year. November also showed a small increase. Cash sales comprised 69% of the total sales, which is about the same as October. Distressed sales consisted of 38% of the total, which is about the same as a year ago and about 40% higher than last month. Distressed sales include both short sales and bank-owned homes. We believe the demand for homes will continue to increase in the near future as mortgage rates are exceedingly low, home prices are at or near the bottom, and area populations are continuing to increase.

Also, many baby boomers and retirees, who had put off moving to Florida in the last 5 to 6 years because of the economy, are now re-considering their move as the stock market inches up, and their savings accounts are being replenished. This group of potential buyers plus the normal retirees over the next few years will give the housing industry in Florida a "double hit" of adrenaline.

House sales on the island were 56% higher than last month and 14% higher than November 2010. This was the best November sales of barrier island houses in 8 years. This could indicate that we are seeing an upturn in homes purchased by future retirees because they are starting to feel that the economy is stabilizing and that prices are at or near the bottom. Year-to-date single family home sales on the island have increased 37% over last year. At the low end there was a 2 bedroom house on Coco Plumb Lane that sold for $121,000 and one on Dahlia that sold for $138,000. At the high end, sales were steady with 4 sales over $1,000,000. The high sales were a 4500+ sq ft oceanfront home in Palm Island Plantation that sold for $1.270,000 and a 4000+ sq ft house in The Estuary that sold for $1,150,000. We expect a good selling season and believe prices will hold for Island Houses, especially at the mid and high end.

Barrier Island single family home inventory was up 4% over the previous month as improved sales encourage more seller postponed listings.

Condo sales on the island were down 34% from the previous month and were down 30% from November 2010. Year-to-date condo sales on the island are up 20% over last year, however. This may seem to contradict our statement about why sales are increasing for island homes. However, our experience indicates that more retirees buy houses rather than condos. More condos sold as 2nd homes. The highest sale this month was $320,000 for a condo in the South Passage subdivision at the Moorings--a slow month for high priced condo sales. At the lower end, 4 sold for under $200,000, Harbour Side II for $175,000, Riverwalk for $170,000, River mews for $175,000 and Harbour Inn for $190,000. We expect a good selling season for Island condos this winter, especially at the mid and high end as inquires are increasing, and the weather has already shown previews of a stormy winter in the Northeast.

Inventory of condos on the island went up minimally from 358 units last month to 367 units in November.

Single family home sales county-wide were down 2% compared to the previous month but up 5% compared to November of 2010. Also, this was the best November sales figures in 8 years – top monthly sales for 2 months in a row. Year-to-date sales were up 12%. On the mainland, there were 51 houses that sold for under $100,000, 27% lower than the previous month. Again most of these sales were in the south end and the northwest side of the county. The high sale was a riverfront at Harmony Island in Grand Harbor @ $900,000 and a canal front in Vero Isles for $875,000.

County-wide inventory of single family houses increased 21 units from 1952 to 1973 the previous month.

There is a 9.91 month supply of houses for sale on the mainland. This is lower than the overall county absorption rate, which is an indicator that lower priced and smaller properties are more in demand. Also, there are more investors buying and renting out the distressed sales on the island. With the expected recapture of equity (appreciation) over the next few years, investment in a low to mid priced house is a good investment. One can even get a little positive cash flow from the investment.

Condo sales county-wide were pretty much level with last month and down 8% over November 2010. Year-to-date condo sales are 13.3% ahead of last year. On the mainland the prices still seem to be drifting up a little as the low end sales in Vista Royale/Gardens ranged from $24,000 for a 1 bedroom to $52,000 for a 2 bedroom unit. There were 10 sales in Vista Royale/ Vista Gardens. On the mainland at the high end, there was a sale in Grove Isle for $148,000 and one at Harmony Island in Grand Harbor for $176,000. .

Inventory decreased to 721 units for sale from 726 the previous month.

There were 10 sales on North Hutchinson Island in November. This was about average for November over the last 8 years. Sales increased over November 2010 by a 10% but were down 30% from last month.

Year-to-date sales have increased by 57% over last year. Inventory of units listed for sale dropped a little from 216 to 212. This inventory does not include the approximately 83 units for sale in a new condo development.

Condo sales ran from $134,000 for a 2nd floor unit in Sea Palms to a 12th floor North side unit in Paragon for $680,000. We personally sold this condo unit, the highest on the Island so far this year. We usually do not identify our own sales specifically, but this was an important market improvement for NHI.

There was one single family home on Bimini that sold for $195,000, and a house sold in the Sands Riverside for $170,000. Earlier this year, a waterfront home in Queens Cove sold for $530,000, which is so far this year the highest single family home sale on North Hutchinson Island.

 

Vero Beach - Hutchinson Island Real Estate Market Update

The 2010 Census shows a total Indian River County population of 138,028, a growth of 22.2% increase since 2000.  Women represent just over half at 51.6%, and 27.2% are 65 + years senior citizens.

Inventory of houses and condos in the Vero Beach FL Indian River County area moved up 1.7% from 2631 units for sale in September 2011 to 2678 in October. However, inventory has decreased 15.7% from October 2010. Overall county-wide sales decreased 15.6% compared with last month but increased 15% over October 2010.  Sales have increased year-to-date in all 5 categories including Hutchinson Island

Since the peak inventory in January 2008, we have established a pattern. Inventory has peaked just after the first of the year when the tourist season starts and moves down through the first half of each year to bottom out in midsummer, and then start to rise again. In the last 3 years, the increase in inventory has been quick to turn up after the winter season sales, but this year inventory has continued to fall until October, which was the first month of inventory increase this year. Sellers may have been staying away from a declining market but are now realizing that our area is at or near the bottom and poised for a recovery. Cash sales comprised 64% of the total sales, which is the same as September and up from 53% from a year ago October 2010. Distressed sales consisted of 27% of the total, which is low compared to a year ago and about 10% lower than last month. Distressed sales include both short sales and bank-owned homes. We believe the demand for homes will continue to increase in the near future as mortgage rates are exceedingly low, home prices are at or near the bottom, and area populations are increasing.

New construction overall is at the lowest it has been in the last 10 years, but buyer traffic in new subdivisions has picked up along with increased sales which may theoretically decrease demand for resale homes. New home sales increased 5.8% in September (the latest month for which figures are available) which was the first increase in 5 months. 

 However, sales of new homes may be short lived as bank foreclosures are expected to rise over the next year as the banks and Florida Courts better synchronize. Foreclosures in 2011 were substantially lower than 2010. Distressed sales nationwide and in Florida are expected to go back up over the next 2 years and reach 1.4 million nationwide in 2013.  So far close to half of the foreclosures have come from private banks as the government seems to have been holding back Fannie Mae, HUD, and Freddie Mac foreclosures. This will change over the next 2 years. However, even with this surge, there should not be much increased pressure downward on prices like there has been in the past because the actual number of liquidations will be smaller.  The government which controls Freddie, Fanny, and HUD  is not likely to allow a flood of foreclosures to hit the markets and again cause a market housing crash. The lesson has been learned.

 

The median price of houses in the Vero Beach Indian River County  area decreased 11% from $120,000 in September to $108,000 in October. There was also a substantial reduction from October 2010.  This figure is the lowest median price in the last 5 years! Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median can be influenced by the number of high or low priced homes sold in a certain period. We have also noticed that the size of more houses selling are smaller than they were 4 or 5 years ago.  

Almost 1/2 of the houses sold in October were sold for under $100,000. We believe that this low median price is not typical of what we can expect in the future. The median will go back up to the $130,000/$150,000 range as owners, not investors, buy in the coming months.  Even though the press keeps focusing on the fact that there are millions of foreclosures waiting to hit the market, we feel that many buyers also anticipating a move to Florida. 

 

   

House sales on the island were 37% lower than last month and 43% lower than last October, about average for October over the last 8 years. Year-to-date single family home sales on the island have increased 30% over last year.  At the low end there was a 2 bedroom house on Honeysuckle Lane that sold for  $240,000 and the real deal was a 2400 sq ft 3 bedroom home in Island Club that sold for $240,199. At the high end, sales moved back on track with 5 sales close to or over $1,000,000.  The high sales were a 6000+ sq ft oceanfront home in Seaview that sold for $3,075,000 and a 5000+ sq ft house in Windsor that sold for $2,675,000. Another deal was a 3500+ sq ft riverfront house in Cache Cay that went for $995,000. We expect a good selling season and believe prices will hold for Island Houses, especially at the mid and high end.

 

Barrier Island single family home inventory was up 5.5% over the previous month.

 

 

Condo sales on the island were up 33% from the previous month and were up 50% from October 2010.  Year-to-date condo sales on the island are up 15% over last year.  The highest sale this month was $635,000 for an ocean view condo in the Chelsea Condo subdivision--again a slow month for high priced condo sales. At the lower end, two sold for under $100,000, one in Del Mar for $96,000 and $50,000 for one in Royal Riviera.  We expect a good selling season for Island condos this winter, especially at the mid and high end as inquires are increasing, and the weather has already shown previews of a stormy winter in the North East.

 

Inventory of condos on the island went down minimally from 358 units last month to 352 units in October.. 

 

 

 

Single family home sales county-wide were down 21% compared to the previous month but up 14% compared to October last year.  Also, this was the best October sales figures in 8 years. Year-to-date sales were up 16.6%.  On the mainland, there were 69 houses that sold for under $100,000, much higher than previous months.  Most of the sales were in the south end and the northwest side of the county. The high sales were for $450,000 in the golf community of Indian River Club and for $425,000 in Coventry Island in Grand Harbor. 

County wide inventory of single family houses increased 5 units to 1952 from the previous month.

There is a 10.4 month supply of houses for sale on the mainland. This is lower that the overall county absorption rate, which is an indicator that lower priced and smaller properties are more in demand. 

 

Condo sales county-wide were level with last month and up 12% over October 2010. Year-to-date condo sales are 12% ahead of last year. On the mainland the prices seem to be drifting up a little as there were only 8 sales under $50,000 compared to 11 last month. There was only 1 sale in Vista Royale/ Vista Gardens, a 1 bedroom unit for $25,000. Other low-end sales were $8,500 for a manufactured home and $19,900 for one in Sutton Place. At the high end there were 2 nice riverfront 3 bedroom 2 bath condos in Harbor Village at Grand Harbor that sold for $442,000 and $500,000. 

 

Of the 308 condos for sale on the mainland, 58 are in Vista Royale/ Vista Gardens. Current asking prices range from $25,000 for a 1 bedroom unit to $75,000 for a very nice 2 bedroom unit. The real bargains may be gone. In the past year there have been 12 units that sold for under $25,000.

 

Inventory increased to 726 units for sale from 720 the previous month.

 

 

There were 13 sales on North  Hutchinson Island  in September. This was the best October in 8 years and a reason to relax a little after 0 sales in September. Sales increased over October 2010 by more than a 160%.

Year-to-date sales have increased by 60% over last year. Inventory of units listed for sale increased from 205 to 216. Again, this inventory does not include the approximately 76 units for sale in a new condo development. November and December look to be above average in sales and there ate 19 properties under contract at this time. 

Condo sales ran from $129,000 for a 4th floor unit in Ocean Harbour North A to a 3rd floor corner unit in Grand Isle for $475,000 which was a real deal. Two canal front houses sold, a 2 bedroom 1520 sq ft in Coral Cove for $277,500 and a 3 bedroom 2087 sq ft in Queens Cove sold for $287,500. The Mellon Patch, a bed and breakfast, sold for $360,000, which was another real deal! 



 

Real Estate Market Update 2004 to September 1, 2011  

 

The median price of houses in Indian River County area increased 3% from $120,000 in July to $124,000 in August. However, the median sales price was down 13% from August 2010.  Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median can be influenced by the number of high or low priced homes sold in a certain period. As noted by the sales in all categories, the number of medium and high priced houses that sold is still low compared to last winter and spring. We are not ready to positively say that the bottom has been reached but it is reasonable to consider that we are at or close to the bottom.  

 

We expect that the turnaround is potentially close, and when prices do start to increase, we should in the near term see a higher than normal appreciation. According to the National Association of Realtors, "the typical appreciation for homes in the United States has averaged around 5% per year." According to The Case-Shiller Index, prices this year have dropped back to 2002 levels. This overcorrection of prices, is assumed to be an over-response to wild appreciation during the housing bubble years of 2004-2007. 

Had it not been for the housing bubble, prices would have likely continued their 5% annual appreciation levels. Given a variety of indicators that include:

·  Population increases

·  Low level of construction starts

·  New construction cost

it is entirely possible we will see a “recapturing of equity” that will be reflected by higher than normal appreciation over the next 3 to 4 years.

 

Low interest rates can make a big difference in the affordability of a home. In 2000, interest rates were at 7.9 %. Now they are under 5%. This equates to a reduction in monthly payments for a $200,000 home purchased now of approximately $395 per month ($4700 per year) over 2000. As interest rates increase, the purchase price of the home you can afford is reduced. In other words, if you wait to buy a home, you may have to settle for your second or third choice FOREVER.

 

 

Inventory of houses and condos in Indian River County dropped 3% from the previous month and 22% from August of 2010. Over-all sales increased 10%  with each category showing increases. This up-tick in sales can be contributed to an increase in purchases by families wanting to relocate prior to the start of school.   Remember these homes were mostly sold in July but did not close until August. 

Since the peak inventory in January 2008, we have established somewhat of a pattern. Inventory has peaked just after the first of the year when the tourist season starts and moves down through the first half of each year to bottom out in mid summer, and then starts to rise again. In the last 3 years, the increase in inventory has been quick to turn up, but this year inventory has continued to fall. Total inventory fell 30% more than the number of sales.  This high level could be temporary if the recently expired listings come back on the market.  County-wide sales in all categories were up by 11% over June 2011 and up 16% from August 2010. Cash sales comprised 62% of the total sales, which is up from 60% last month and down from 65% a year ago. Distressed sales consisted of 36% of the total, which is low compared to a year ago and about the same as last month. Distressed sales include both short sales and bank owned homes.

We believe the demand for homes will increase in the near future as mortgage rates are still very low and home prices are at or near the bottom. 

New construction is still at the lowest it has been in the last 10 years, which drives up the demand for resale homes. In Indian River County the 2007 taxable value of new construction was over $700 million.  In 2011, through the first 6 months, that taxable value is $89 million, which, when annualized, is up only fractionally over 2010. In general, the same ratios occur for St Lucie County

Bank foreclosures are expected to rise over the next year as the banks and courts better synchronize. However, many of these foreclosed homes are being bought by investors and used as rental units for displaced homeowners. 

The population in Florida and thus the need for homes continues to increase. According to the 2010 census, it is now 18.8 million, up 300,000 from 2009 and up 3 million from 2000. In Indian River County the population increased from 113,000 in 2000 to 138,000 in 2010. The St Lucie County population increased from 192,000 in 2000 to 278,000 in 2010.

 

 House sales on the island were still higher than usual for this time of year, but only by a little. Sales increased 9.5% from the previous month and were up 5% over June 2010. Year-to-date single family home sales on the island have increased 54% over last year.  At the low end there were homes that sold for under $300,000 in central beach, and 2 in Summerplace on the West side of A1A. One sold in Seagrove West that needed rehabilitation for $269,700.  At the high end there were 7 homes selling for over $1 million. The high sales were a 5500+ sqft oceanfront home on Corona that sold for $4.8 million and a 6500+ sqft riverfront home in Seagrove that went for $1,650,000.The other million dollar homes were 3 in Riomar Bay and 1 each in Orchid Island and the Estuary. Island house inventory decreased  2% with 503 homes currently for sale, a 16.3 month supply.

 

Condo sales on the island were up double the previous month and were also double the sales in August 2010.  Year-to-date condo sales on the island are up 20% over last year.  The highest sale this month was $634,500 for a 3 bedroom unit in Johns Island, then fell to $375,000 for a riverfront condo in the Moorings. At the low end, 2 units sold in Vista Del Mar for $75,000 and $89,000. In our opinion the deal of the month was a unit in the Vero Beach Hotel and Club that sold for $165,000. Current inventory of condominium units for sale on the island is 333, which is down from last month, and there a 20.1 month supply of condos available on the Island.  Condos are the slowest moving category, however, because they are most likely to be a second home.

 

 

House sales county-wide were up 40% compared to the previous month and up 18% compared to August 2010. Inventory also decreased by 2.5%. In this category sales were influenced by the number of families moving in to the area.  Year-to-date sales were up 16%.

On the mainland,  there was only one house that sold for under $30,000 which was a bank owned fixer-upper in Vero Lake Estates. There were 71 houses that sold for under $100,000, which was up from previous months. The highest sales on the mainland were a 4500+ sq ft house on 5 acres that sold for $865,000 and a 3500+ sq ft house on 10 acres that sold for $645,000.  Inventory of houses on the mainland continue to drop at a faster rate than the overall county figures. There is a 10.1 month supply of houses for sale on the mainland.  This is just another indication that the lower and more moderately prices houses are in demand.

 

 

Condo sales county-wide  were up 40% from last month and up 63% from August 2010. Year-to-date condo sales are 12.5% ahead of last year. Inventory was reduced by 7%, but there still is a 19.3 month of condos for sale county wide. Again condos have the highest inventory and are slowest moving because they more often tend to be second homes.  On the mainland there were 8 sales under $50,000, 6 of these were in Vista Royale/Vista Gardens, including 2 one bedroom units for $22 and $23,000. Both were in decent shape. The other 2 that sold for under 50k were in East Gate and Villamar. The highest sales were at The Inlet at Sebastian for $200 and $212,000.  Palm Estates had 4 closings this month and the Fairways at Grand Harbor had 3 closings

 

 

 

North Hutchinson Island sales were up 44% from last month and up 62% from August 2010. Year-to-date sales have increased by 47% over last year. Inventory of units listed for sale decreased 10 units from 205 to 195, a 15.8 month supply. This inventory does not include the approximately 85 units for sale in a new luxury condo development on the island that are not listed on any Multiple Listing System.  Sale prices ranged from $430,000 for a 3 bedroom 2164 sqft unit on the 7th floor in the Atrium to a 1st floor unit in Ocean Harbour North for $77,500. There were 2 sales in Tiara including a 14th floor center unit for $283,000. Two houses sold, a 1966 sq ft home with 36 ft on the water in Queens Cove sold for $251,277, and a 2264 sqft no waterfront house on Bimini for $205,000.  Three of the sales were bank owned properties and 59% of the sales year-to-date were sold for cash. Traffic through the office and at open houses was slow in August, which is an indicator that sales will not pick up significantly in the coming months.  

 

 

 

 

Vero Beach - Hutchinson Island Real Esate Market Update to End of July 2011

Inventory of houses and condos in Indian River County basically stayed the same, down by only 7 units, as overall sales slowed while many people are enjoying the summer weather and not thinking about buying or selling their homes. Since the peak inventory on January 2008, we have established a somewhat of a pattern. Inventory has peaked just after the first of the year when the tourist season starts and moves down through the first half of each year to bottom out in mid summer, and then starts to rise again. In the last 3 years, the increase has been quick to turn up, but this year inventory stayed flat. Let's hope this trend continues.  County-wide sales in all categories were down by 30% over June 2011 and down 8% from July 2010. Cash sales comprised 60% of the total sales, which is up from 56% last month and down from 65% a year ago. Distressed sales consisted of 37% of the total which is low compared to a year ago.

We still believe the demand for homes will increase in the near future as mortgage rates are still very low and home prices are at or near the bottom. 

·  New construction is still at the lowest it has been in the last 10 years, which should drive up the demand for resale homes. In Indian River County the 2007 taxable value of new construction was over $ 700 million. In 2011, thru the first 6 months, that taxable value is $89 million, which, when annualized, it is up fractionally over 2010. In general, the same ratios occur for St Lucie County

·  Yes, bank foreclosures are expected to rise over the next year as the banks and courts better synchronize.  Many of these foreclosed homes are being bought by investors and used as rental units for displaced home owners. 

·  The population in Florida continues to increase. According to the 2010 census, it is now 18.8 million, up 300,000 from 2009 and up 3 million from 2000. In Indian River County the population increased from 113,000 in 2000 to 138,000 in 2010. The St Lucie County population increased from 192,000 in 2000 to 278,000 in 2010

People need to live somewhere whether they own or rent.

 

 

The median price of houses in Indian River County area decreased 14% from $137,000 in June to $120,000 in July. There was also a 12% reduction from July 2010.  This figure is equal to the lowest median price in the last 5 years, which occurred in January 2011. Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median can be influenced by the number of high or low priced homes sold in a certain period. As noted by the sales in all categories, the number of medium and high priced houses that sold dropped off substantially this month. Because the median has stayed fairly constant and the number of higher-priced sales have decreased, it is reasonable to say that we are at or close to the bottom of the slide in values. We believe that the decline of prices is at or near bottom, and that this low median price indicates a tend that buyers are moving to lower priced homes.  

We expect that the turnaround is close, and when prices do start to increase, we should see a higher than normal appreciation. According to the National Association of Realtors, "the typical appreciation for homes in the United States has averaged around 5% per year." According to The Case-Shiller Index, prices this year have dropped back to 2002 levels. This overcorrection of prices, is a response to wild appreciation during the housing bubble years of 2004-2007.

Had it not been for the housing bubble, prices would have likely continued their 5% annual appreciation levels. Given a variety of indicators that include:

-      Population increases

-      Low level of construction starts

-      New construction costs

It is entirely possible that once the economy and real estate market recover, we will see a “recapturing of equity” that will be reflected by higher than normal appreciation that will occur until housings prices recover based on historical appreciation.

 

 House sales on the island were still higher than usual for this time of year. Sales decreased 42% from the previous month but were up 34% over June 2010. Year-to-date single family home sales on the island have increased 63% over last year.  At the low end there were 2 homes that sold for under $300,000 in central beach, including a small 2/2 on Dahlia for $215,000.  At the high end there was a reduction in sales with only 2 homes selling for over $1 million while last month there were 6 homes that sold for over $1 million. The high sales were a 5500+ sq ft oceanfront home in Johns Island that sold for $4.6 million and a 4500+ sq ft riverfront home in Castaway Cove that went for $1,635,000. Many of these high end homes are purchased by part-time residents who have left the area until next season.  Island house inventory went down 5% with 513 homes currently for sale, a 15.9 month supply. 

 

House sales county-wide were down 23% compared to the previous month and down 10% compared to June 2010. Inventory also decreased but only by 5 units. County-wide there are 1995 homes currently for sale, an 11.5 month supply.  Year-to-date sales were up 13%. A downturn in sales is typical for this time of year. On the mainland,  there were 4 houses that sold for under $30,000 and a total of 57 that sold for under $100,000.The highest sales on the mainland were a 3500+ sq ft home on 15 acres that sold for $749,000 and a 2700+ sq ft harbor front home in Grand Harbor that sold for $625,000. Inventory of houses on the mainland continue to drop at a faster rate than the overall county figures. There is a 10.3 month supply of houses for sale on the mainland.  

 

Condo sales on the island were down 34% from the previous month and were down 34% from July 2010.  Year-to-date condo sales on the island are up 14% over last year.  The highest sale this month was just $430,700 for an oceanfront unit at Baytree. Last month there were 2 island condo sales over $800.000. This highlights the fact that not many tourists are here this time of year. At the lower end price, a condo sold in Baha Mar for $128,000 and one in Bayou Condo for $140,000. Island sales are normally slow at this time of the year and this year, sales are even a little slower.  Current inventory of condominium units for sale on the island is an 18.1 month supply.

 

Condo sales county-wide were down 42% from last month and down 34% from June 2010. Year-to-date condo sales are11% ahead of last year, but there are still 743 units for sale, a 13.3 month supply.  On the mainland there were 13 sales under $50,000, 8 of these were in Vista Royale/Vista Gardens, including a bank-owned 2 bedroom unit for $13,200 that was in decent shape. There was only 1 condo that sold for over $100,000 compared to 6 last month, a 3 bedroom 3rd floor unit at The Inlet at Sebastian. Again, not a surprise for the summer months. 

 

North Hutchinson Island sales were down 10% from last month but were up 20% from July 2010. Year-to-date sales have increased by 32% over last year. Inventory of units listed for sale decreased 9 units from 214 to 205, a 16.9 month supply. This inventory does not include the approximately 85 units for sale in a new luxury condo development on the island.  Sale prices ranged from $367,000 for a 3 bedroom 1770 sq ft waterfront home in Queens Cove,  $250,000 for a 5th floor in Sands on  the Ocean, to the low end at $101,500 for 1st floor condo in Sands Lakeview, and $137,000 for a 5th floor condo in Atlantic View.  Slow sales are normal for the summer. It is an encouraging sign to see them still ahead of last year’s numbers.  Traffic through the office and open houses is still slow, which is an near future indicator that sales will not pick up significantly. 

Vero Beach - Hutchinson Island Real Estate Market Update to End of June 2011

The inventory of houses and condos for sale in Indian River County Florida declined 4% in the last month and 15% since June 2010. Year-to-date sales were up in all 4 Indian River categories and absorption rates were up. High sales helped to reduce inventory with fewer units coming onto the market, and we think that that will be the case in the future as Buyers realize that prices of most homes in our areas are at or very close to the bottom. However, we expect inventories to be reduced more slowly in the coming off-season months.  56% of the sales were purchased with cash, which is down 4% from last month. 39% of the sales were foreclosures or short sales, which is up 5% from last month but down from 43% in February 2011. The banks still have plenty of inventory to release to the market but have fallen approximately 17% from the peak a year or so ago. Also, home loan delinquencies fell approximately 10% from a year ago. 

The near future predicts a turnaround in demand for homes will occur as inventories of new construction are currently at historic lows. Population growth alone will fuel the need for homes either to rent or to own, and mortgages are still at historic lows which gives buyers a great advantage. These future needs will probably be for smaller homes as there is a great number of baby boomers who will down size and younger or immigrate buyers/renters will be more careful not to overextend. 

The median price of houses in Indian River County area decreased marginally from $138,000 in May to $137,000 in June and is about equal to June 2010.  The figure has remained relatively flat or increased over the last 6 months. Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median can be influenced by the number of high or low priced homes sold in a certain period. Because the median has stayed fairly constant and the number of higher-priced sales have decreased, it is reasonable to say that we are at or close to the bottom of the slide in values. If the median continues to stay constant over the summer months when Island homes sales slow down, we will then be able to confirm that prices have stabilized. In some price ranges the reduction in inventory of homes has actually already moved prices higher.  In Florida , the foreclosure process now takes about over 800 days to complete, which is up from previous figures. This time period will probably continue to rise as funds to hire retired part-time judges to only handle foreclosures have been cut. 

House sales on the island were still higher than usual for this time of year. Sales decreased 11% from the previous month but were up 39% over June 2010. Year-to-date single family home sales on the island have increased 71% over last year.  At the low end there were 4 homes that sold for $300,000 including one on Flamevine for $215,000.  There were 6 homes that sold for over $1 million Including 4 in Windsor that sold between $1.2 mill and a 9000 sq ft home that sold for $4.75 million. The other 2 were oceanfront homes in Riomar and Seagrove that sold for $2.25 and $3.0 mill respectively. 

Condo sales on the island were down 50% from the previous month but were up 14% form June 2010.  Year-to-date condo sales on the island are up 11% over last year.  At the lower price end there were 2 Villas that sold in Sea Oaks for under $140,000 and 2 other villas, 1 each in Pebble Beach and Park Shores, that also sold for under $140,000.  At the high end there was one in Johns island for $875,000 and one in Orchid Island for $1,450,000.

House sales county-wide were down 14% compared to the previous month but up 8% compared to June 2010. Inventory also decreased.  Year-to-date sales were up 14% over last year.  The lower priced sales were located mainly in the south county with 3 houses sold in the Old Dixie area for under $30,000.  On the mainland the highest sale was a riverfront house in Wabasso that sold for $615,000. The next highest was another waterfront house on Tarpon Drive off Indian River Blvd that sold for $536,000. 

Condo sales county-wide were down 39% from last month and down 11% from June 2010. Year-to-date condo sales are 9% ahead of last year.  On the mainland there were 12 sales under $50,000, 6 of these were in Vista Royale/Vista Gardens, including a 1 bedroom unit for $12,600 and a 2 bedroom unit for $32,000. There were 6 condos that sold for over $100,000.including a riverfront condo in Grand Harbor for $517,000. 

North Hutchinson Island sales were even with last month but down 40% from June 2010.  However, year-to-date sales are up 117% over last year. Inventory of units listed for sale decreased 7 units from 221 to 214. This inventory does not include the approximately 63 units for sale in a new condo development.  Sale prices ranged from $650,000 for a penthouse in Altamira and $670,000 for a 5th floor in Oceanique to the low end at $112,000 for a 4th floor in Bryn Mawr and $124,000 for 1202 in Sea Palms.. Someone got a nice deal on an 8th floor 3 bedroom in Hibiscus II for $325,000.  Sales usually reach their peak in April and May and fall off for the rest of the year, which is evident with this month’s results. Traffic through the office and open houses has dropped significantly, which is not a good sign that sales will reverse last year’s seasonal trend. 

Vero Beach - Hutchinson Island Real Estate Market Update to End of May 2011

Vero Beach / Indian River County Florida total condo and house inventory of homes for sale declined 6% in the last month and 14% since May 2010.  Monthly sales and year-to-date sales were up in all 4 Indian River categories and absorption rates were up. High sales helped to reduce inventory with fewer units coming on to the market, and we think that that will be the case in the future as Buyers realize that prices of most homes in our areas are at or very close to the bottom. However, we expect inventories to be reduced more slowly in the coming off season months.   60% of the sales were purchased with cash, which is down 21% from last month, and 34% of the sales were foreclosures or short sales, which is up from last month but down from 48% in February 2011.  Foreclosures made up 32% of Florida closings but sold for only 15% less than normal sales. 

The median price of houses in the Vero Beach area county-wide decreased marginally from $140,000 in April to $138,000 in May.  However, the median has increased substantially from May 2010 when it was $122,000 and from earlier this year when the median was $120,000. The figure has remained relatively flat for the last 3 months. Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median can be influenced by the number of high or low priced homes sold in a certain period. However, if the median stays up over the summer months when Island homes sales slow down, we will then be able to say with reasonable confidence that overall values have bottomed out.  We see strong evidence that the bottom in prices on the mainland is at hand especially for homes in the under $200,000 price range. In many cases, the reduction in inventory of homes in this price range has actually moved prices up. The primary unknowns are how many foreclosure properties are being withheld from the market by the banks and how many foreclosed properties are stuck in the courts because of the problem-laden closings of 3 of the state’s largest foreclosure attorney firms.  In Florida, the foreclosure process now takes about 619 days, up from 470 days a year ago.

 

Island House sales were higher than usual for this time of year. Sales decreased 7% from 45 closed sales in April, which is historically the best sales month of the year, down to 42 closed sales in May.   However, this is an outstanding 90% increase over May of 2010.  At the low end, there was a home on Mockingbird that sold for $147,895 and one on Banyan for $220,000. Both were 3 bedroom homes built in the 1970s. There were 8 homes that sold for over $1,000,000.  The highest were a 4 bedroom 4500+ sq ft home in Windsor for $2,700,000 and a 6 bedroom 6500+ sq ft home in Riomar Bay.  Inventory also decreased from 597 active listings in April, which was 19.57 month supply, down to 563 in May, which is a 17.2 month supply.  Year-to-date single family home sales on the island have increased 73% over last year.

Condo sales on the island increased 11% from 27 sales in April to 30 sales in May and 30% from May 2010. This is encouraging and indicates that prices are down low enough to continue to attract Buyers. Also because Easter was late this year, many May closings are the result of sales contracts written in early April prior to the end of the season.  Inventory of available condos on the island for sale decreased from 485 in April to 390 in May, just over an 18 month supply.  Of course the decline does not mean that all of these units sold but also that many were withdrawn from the market.  At the lower price end, a unit sold in Del Mar for $80,000. At the high end, a 2000+ sq ft oceanfront villa sold in Baytree for $610,000. Other sales of interest were 2 at Southwinds in the Moorings for around $475,000 and 3 in Park Shores for around $150,000. The real deal was a second floor refurbished unit in the Spires that sold for $205,000. Year-to-date condo sales on the island are up 23% over last year.

Condo sales county-wide were up 4% over the previous month and an impressive 56% higher than May 2010. On the Mainland there were 13 sales under $50,000, 6 of these were in Vista Royale, including a 1 bedroom unit for $12,000 and a 2 bedroom unit for $22,000. There were 9 condos that sold for over $100,000.  This month 7 condos that sold for over $100,000 including a river front condo in Grand Harbor for $950,000.  Year-to-date condo sales are 14% ahead of last year. 

 

Sales of houses county-wide were up 10% compared to the previous month and up 22% compared to May 2010.  Inventory also decreased. All 3 are good signs, especially for this time of the year.  The lower priced sales were located mainly in the south county with 7 houses sold in the Old Dixie area for under $30,000. There were also 2 sold in Fellsmere for under $15,500. The highest sale on the MAINLAND was a 3500+ sq ft house on 10 acres that sold for $800,000. The next highest sale on the mainland was a on the golf course at Indian River Club for $680,000.  Market values are still declining for higher priced and very low priced house but are starting to level off for homes priced around $200,000.  Year-to-date sales were up 15% over last year. 

Sales on North Hutchinson Island decreased 50% from last month but were still up 30% from May 2010. Inventory of units listed for sale decreased 3 units from 224 to 221. This inventory does not include the approximately 65 units for sale in a new condo development.  Sale prices ranged from $495,000 for a 6th floor in Altamira and $500,000 for the 11th floor in Visions to $139,000 for a 9th floor in Bryn Mawr. A nice 15th floor corner sold in Tiara for $369,500 and an 8th floor corner in Ocean Pearl for $473,600.  Sales usually reach their peak in April and fall off for the rest of the year, which is evident with this month’s results. Traffic through the office and open houses has dropped significantly, which is not a good sign that sales will continue to be as strong.  However, year-to-date sales are up 117% over last year.

 

 

Local Real Estate Market Update Updated End of April 2011 

The median price of houses in the Vero BeachFL area county-wide increased 16% to  $142,000, which is about the same as the last 2 years for March. We believe this up tick for March reflects increased sales for higher priced houses purchased by snow birds either for part time residences or for retirement. 33% of the houses sold were under $100,000, a decrease from 43% last month. 13% of the total sales were over $500,000, also an increase of 10% from February. We see strong evidence that the bottom in prices on the mainland is at hand for homes under $200,000, but still expect that prices for higher-priced homes on the mainland and on the Island may continue to slide down somewhat. 28% of the house and condo sales county-wide were distressed (short sales or foreclosures). This figure is up down from 43% last month.

House sales on the island in Vero BeachFL increased 43% over last month and 32% over March of 2010. 1st  quarter sales were up substantially compared to 2010. However, with 646 homes for sale on the island, there is still a 19.5 month supply at current absorption rates.  At the low end, there were sales of an older home in Bethel by the Sea for $150,000, and 2 in Castaway Cove for $252,000 and $260,000. There were 18 sales over $500,000, and 9 of those sales were over $1,000,000. The highest sales were an 8000+sq ft oceanfront house on Ocean Drive for $6,300,000 and an 8000+sq ft house on South A1A that also sold for $6,300,000. Sales on the island should stay high in March, April and part of May and then are expected to decline as the winter season ends. 

Condo sales on the island increased over 100% from the previous month and were little higher than March 2010. This reflects closings in March but the sales were contracted in January and February. This bump up was expected, but we feel condo sales will likely continue to be low until more second home buyers and retirees return to the market. Even though investors have come back to real estate on the low end, the prices of condos on the island are too high for most investors. We should still anticipate that seasonal sales will bounce up in April and May.  At the lower price end, there were units sold in VistaDel Mar, Royal Riviera and East Wind for under $150,000. At the high end, units sold in John’s Island and the Pointes in the Moorings community for $525,000 and $ 550,000 respectively.

Sales of houses county-wide were up a fraction compared to the previous month and down a fraction compared to March 2010.  Again this month the lower priced sales were located mainly in the south county, and the higher sales were on the island. However there was a 5000+ sq ft home on the mainland that sold for $1,125,000. The next highest sale on the mainland was for $545,000 in Rosewood Court. Market values are still declining for higher priced and larger homes both on the mainland and on the island but holding level for homes priced under $200,000.

Condo sales county-wide were up 58% over the previous month and were just a little higher than March 2010. However, this was the best March for condo sales in 6 years. On the mainland where there were 54 sales.  However, 70% of these sales were under $50,000 (up from 50% last month). Most of these were in Vista Royale and The Villas at Indian River. However this month there were 7 condos that sold for over $100,000 compared with 1 last month. The high sale on the mainland for the month was a river view unit in RiverVillage in GrandHarbor for $775,000. 

Sales on North Hutchinson Island increased 15% over February 2011 and 66% over March 2010. First quarter sales more than doubled over the 1st quarter of 2010. 1st quarter 2011 was by far the best sales result since 2004. Inventory of units for sale decreased 13 units to 231, which does not include the approximately 74 units for sale in the new condo development.  Sale prices ranged from $530,000 for a 2700 sq ft waterfront house in Queens Cove to $125,000 for a 1st floor unit in Sea Palms. Two other interior units sold in Sea Palms for $130,000 and $140,000. There were also 2 sales in Oceanique, #802 and #1204 for $477,404 and $477,405. The highest price condo sale was unit 1204 in Ocean Pearl for $497,500. Another nice house sold in Sands Riverside, a 2400 sq ft lakefront, for $324,000. However, with 321 properties for sale on NHI, it is still a buyer’s market. We are slowly whittling away at the inventory and falling values have slowed down.

 

Local Real Estate Market Update - 2011 February

Total condo and house inventory declined a little from 3153 in January to 3131 at the end of February 2011. However sales were up substantially in 4 out of the 5 categories that we track. Only Island condos sales were disappointing.  We expect inventory to pick up in the coming months but be offset gradually by increased sales.  In the short term inventory should stay level.  At present absorption rate, there is a 15.57 month inventory of properties for sale. Point of interest: there is now only a 9.05 month supply of homes for sale priced $200,000 or less, which is getting close the perfect 6 month equilibrium balance for buyers and sellers.  
  

 

The median price of houses in the Vero BeachFL area county-wide inched up a little to $121,000, but remains substantially lower than last February 2010 at $138,000. 43% of the houses sold were under $100,000, a increase from 33% in January. Only 10% of the total sales were over $500,000. We still think that the bottom in prices on the mainland is at hand for homes under $200,000, but still expect that prices for higher-priced homes on the mainland and homes on the Island will continue to slide down somewhat. 42% of the house sales were distressed (short sales or disclosures). This figure is up from 31% last month.

 

 

 

House sales on the island in Vero BeachFL increased nominally from 21 sales in January to 23 sales this month. However sales were up 60% from February 2010. This is the second month in a row that sales were up over 50% compared to 2010. However, with 615 homes listed for sale, there is still a 26.7 month supply at current absorption rates. At the low end, there were 4 sales under $300,000 --the lowest was $150,000 on Dahlia in the island town area. However, there were 13 sales over $500,000, and 6 of those sales were over $1,000,000. The highest  sale was an oceanfront house in Riomar for $7,000,000, which had been on the market for over 2 years. Others that sold for over a million were in Castaway Cove, the Shores, Windsor and 2 in The Moorings.  Sales on the island should stay high in March April and part of May and then are expected to decline when the season is over. 

 

 

Condo sales on the island decreased from the previous month and were even with February 2011. This was expected as condo sales will likely continue to be low until more second home buyers and retirees return to the market. Even though investors have come back to real estate on the low end, the prices of condos on the island are too high for most investors. We should see seasonal sales bounce up in March and April though.  At the lower price end, there was a unit sold in ParkShores for $168,500 and one in Bayou for $170,000.  At the high end, a unit sold in Victoria for $525,000 and 2 in Beachwalk for $348,000 and $350,000. 

 

Sales of houses county wide were up 68% compared to the previous month and up 56% over February 2010. Investors are coming back into the market buying low-priced houses with cash. In fact, 69% of the homes sold were cash sales. With 160 single family home sales this past month, there is now a 13.9 month inventory supply. Again this month the lower priced sales were located mainly in the south county. However, on the mainland there were 3 homes sold for over $500,000, a riverfront home in GrandHarbor for $825,000, a home in the Falls at GrandHarbor for $645,000 and one in Coventry island for $530,000.  Market values are still declining for higher priced and larger homes both on the mainland and on the island. 

 

 

Condo sales were up 22% over the previous month and were basically level with February 2010. However this was the best February for sales in 6 years. On the mainland where there were 30 sales.  However, 50% of the sales were under $50,000 and only 1 over $100,000. Six sold in Vista Royale for under $35,000. The high sale on the mainland for the month was in MarinaVillage in GrandHarbor for $400,000.  Buyers are snatching up the lower priced units but there are still 908 units for sale and a 22.1 month supply at current sales rates.

 

While Sales on North Hutchinson Island increased 44% over January 2011 and 400% over February 2010, inventory of units for sale increased from 224 to 244, which does not include the approximately 77 units for sale in the new condo development.  Sale prices ranged from $617,000 for a 4th floor corner unit in Oceanique to $115,000 for a 1st floor unit in Ocean Harbour North. Two nice interior units sold in Ocean Harbour South for $167,000 and $172,000. Both were refurbished very nicely. There were also 2 sales in Aquanique, # 1408 and 1405 for $350 and $360,000 respectively. Including the new construction, there are approximately 300 houses and condos for sale on NorthHutchinsonIsland, approximately a 23 month supply of properties for sale based on February's absorption rate, still a Buyer’s market.

 

 

 

 

Local Real Estate Market Update -2011 January  

Total condo and house inventory declined a little from 3159 in December 2010 to 3153 at the end of January 2011.   We expect inventory to pick up in the coming months but be offset gradually by increased sales.  In the short term inventory should stay level.  The number of island sales in condos and houses increased over last year by 44% but decreased on the mainland by 125%. County-wide there was a decrease in sales from December by 83%. Based on sales in 2010, there is a 17 month supply of houses and condos on the market in Indian River County.


The median price of houses county-wide dropped to $120,000, substantially lower than last month at $138,000, which about the average for 2010. 33% of the houses sold were under $100,000, a small decrease from 38% in December. Only 7% of the total sales were over $500,000. We still think that the bottom in prices on the mainland is at hand for homes under $200,000 especially but still expect that prices for higher-priced homes on the mainland and homes on the Island will continue to slide down somewhat.

During the last 3 months, we have seen a sharp increase in banks asking for market evaluations for future foreclosures.  In January, Short Sale and Foreclosure sales were about 31% of the total sales, which was low compared to prior months, but as noted this market sector is expected to expand. Distressed sales are projected to remain a substantial part of the market for at least another year.

House saleson the island dropped about 30% from last month, but at 21 total sales closed this month, were up 50% from December 2010. This may be the start of something good for the island which has lagged behind the increase in sales on the mainland during the past year. January is usually a slow month for closed sales because the property would have gone under contract around the holidays.

 

At the low end, there were 5 sales under $300,000 --the lowest, a foreclosure, at $171,318 in the beach town area. However, there were 11 sales over $500,000, and 4 of those sales were over $2,000,000. The highest 2 sales were in Bermuda Bay for $3.2 and $3.6 million.  The other 2 were in Windsor. Sales on the island should remain level during February and then move higher toward the end of the season when most closings typically occur on the barrier island. 

Condo sales on the island increased a little over December, but with only 15 sales were about the same as January 2010. Long term, condo sales will likely continue to be low until the second home buyers and retirees feel the economy has stabilized, and consumers regain confidence. The improvement in the stock market may fuel more sales, and the additional activity during the winter season will also create more sales.  At the low end, there were a couple of units sold in Park Shores for $155,000 and $195,000.  At the high end, an oceanfront unit sold in Sea Oaks at $625,000.

 

Sales of houses countywide were down 72% compared to the previous month but about even with January 2010. The decrease was primarily on the mainland and mainly in the mid and higher priced homes. Investors seemed to be still buying low-priced houses for rentals or flipping after repairs.  Again the lower priced sales were located mainly in the south county. This month there was only one home sold on the mainland for over $400,000, a canal home in Vero Isles for $480,000. Market values are still declining for higher priced and larger homes both on the mainland and on the island. 

Condo sales county-wide were down 11% over the previous month but were up substantially (70%) over January 2010. This was the best January in 4 years with 34 sales, which was a nice surprise. This was another active month on the mainland where there were 19 sales, lower than December but still respectable.  However, close to 50% of the sales were under $50,000 and only 4 were over $100,000, which was a slight increase. Three sold in Vista Royale, one for $29,000. The high sale on the mainland for the month was a one story villa in Bent Pine that sold for $225,000. Condos sales are expected to remain level until the 2nd home buyers and retirees feel the economy has stabilized and consumers regain confidence.

Sales on North Hutchinson Island tapered off just a little from December, 10 sales verses 9 sales, but were 33% higher than January 2010. Inventory increased from 219 to 224 but does not include the approximately 80 units for sale in the new condo development.  Sale prices ranged from $495,000 for a 7th floor unit in Altamira to $32,600 for a bank owned town home in the "tri-plex" area just west of the Cumberland Farms. Two mid floor interior units sold in Bryn Mawr for $155,000 and $195,000 and another Altamira unit on the 2nd floor sold for $435,000.  All were good buys. Including the new construction, there are approximately 300 houses and condos for sale on North Hutchinson Island, and 91 were sold last year. That equates to almost a 40 month supply of properties for sale, definitely a Buyers market.