Real Estate Market Continues Gradual Recovery

 Inventory of houses and condominium properties in the Vero Beach - Indian River County area decreased 2.9% from last month and has decreased 15.3% since July 2011. 

 

Total year-to-date sales are up 10% over 2011.  Year-to-date sales in all 5 categories improved.  Cash sales comprised 58% of the sales in June, which is down 10% from last month.  A good sign is that the 30 year mortgage rates, which are at an all time low, are finally becoming a little easier to get.  Overall county-wide sales only declined 2.9% compared with last month and increased 25% over June 2011. 

 

Inventory topped out at 3980 properties for sale in January 2008, over a 2 year supply in Indian River County, declining to 2318 at the end of July 2012, which translates to a 9.2 month supply.  This is still slightly a buyer's market at the current absorption rate.  Remember, however, that a 6 month supply is commonly considered to be a balanced market favoring neither buyer nor seller, so if the current trends continue, we are approaching that equilibrium. 

Distressed sales, including both short sales and bank-owned foreclosure homes are currently 25%, about the same as most of this year.  However, the number of short sales is rising while foreclosures are falling even though the news media reports that foreclosures are rising.  However, banks are not necessarily repossessing these homes because it can be a liability if the home is empty or if there are improper procedures used during the foreclosure process. . Also, short sales sell for more that empty bank owned properties. Therefore, many of the homes that enter the foreclosure process are actually sold as cooperative short sales to the advantage of the bank as well as the owner/seller. 

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The median price of properties in the Vero Beach - Indian River County area decreased by 5.6% to $134,000 compared to last month but increased by 11.6% compared to July 2011. Year-to-date, the median sales price on the island remains at $500,000. The median price is still volatile statistic  and may vary slightly up and down over the next several months. During the off season we typically have slower sales of higher prices houses..  Lower end home homes are showing an increase in sales because of declining inventories and increasing prices which are prompting Buyers to "BUY NOW."

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Single family home sales on the Vero Beach island were 34% lower in June than last month but 27% higher than July 2011.  Inventory in this category now stands at 488, which at the current absorption rate is a 13.7 month supply of homes. Compared to 2011, year-to-date sales were up 12% compared to 2011.   

At the low end of sales this month, a 3 bedroom house on Holly in Central Beach sold for $273,800, and a 2 bedroom house in Old Orchid sold for $300,000.

At the high end, sales were down with only  6 sales over $1,000,000.  The top sale this month was an oceanfront 4000 sqft+ home in Smugglers Cove that sold for $3,050,000, 23% below the asking price. 

Other high sales were an oceanfront home in Porpoise Point for $2,800,000 down to $1,000,000 for a canal-front home in The Moorings.  We expect sales will slow down only slightly for high and low end Island single family homes, but may slow down more for mid-priced island houses from $500,000 to $775,000. Investors are buying at the low end and recent price reductions at the high end are making these properties quite attractive for affluent buyers.

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Condo sales on the Vero Beach island were down 30% from last month but up 6% over July 2011. 

Year-to-date condo sales on the island were up 10% compared to 2011.    

The highest sales this month were $550,000 for an oceanfront condo in John's island and $365,000 for a 3rd floor Seaquay condo.   At the low end, there was a sale in Porpoise Bay for $135,000 and one in Pebble Beach Villas for $161,000. Two condo-hotel room units sold in the Vero Beach Hotel and Club for $235,000 and  $270,000

Sale of condos on the island are expected to remain slow the rest of the year.  There are only 29 condos now under contract to sustain future sales levels.

2012-7 Island Condos.jpg

 

House sales Indian River County-wide were down 23% last month compared to the previous month and even compared to July 2011.  However, year-to-date sales were up 12% over the same period in 2011. 

On the mainland 38% of the houses sold this month for under $100,000, about the same as last month.  The high sales were $825,000 for a 3000+ sqft waterfront home in Grand Harbor, $585,000 for a 3000+ sqft riverfront home in Pelican Point and $515,000 for a 3000+ sq ft home in Coventry island..  These were the only mainland houses that sold for over $500,000 in June.  The low end sales were mostly southeast of Oslo Road.  Sales should stay strong for low and mid-priced homes as mortgage rates are low and investor sales are still strong. Rental rates are currently increasing but may taper off as mortgages are gradually becoming more available so more people are jumping into the buying market as prices begin to rise.  The media is saying that it is now better to own than to rent.

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Condo sales Indian River County-wide were down 71% over last month but up 10% over July 2011.  

 Year-to-date condo sales are up 3%.  

7 sales in Vista Royale/ Vista Gardens ranged from $20,000 for a 1 bedroom to $63,000 for a 2 bedroom unit.  Other low end sales were in Tropic Groves for $30,000 and $54,000. 2 units sold in Laguna for $55,000 and $58,000.  At the high end, a unit sold at Royal Palm Point for $850,000 and one in River Village at Grand Harbor for $710,000. 

Sales of mainland condos should hold steady as there are 40 units under contract including 10 at the Vista complex. However, 30 of the 40 units are listed under $100,000. 

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There were 13 sales on North Hutchinson Island in June.  This is the best June in 8 years.  Sales were down 23% compared to last month but were up 44% from July 2011. 

Year-to-date sales are up 12.9% from last year.  

 At the low end, a 2 bedroom 5th  floor riverside unit in Atlantic View sold for $75,000 and a 2 bedroom unit on the 5th   floor sold in Ocean Harbour South for $134,000.   At the high end, 2 more units sold in Oceanique,  for $448,000 and $ 679,000, while 2 homes sold in Queens cove for $685,000 and $420,000. 

Traffic through the NHI office and showings are starting to slow, but there are now 35 properties under contract, so closings should hold up for a while until fall buyers arrive to buy for next winter.

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Vero Beach- Hutchinson Island Real Estate Market Update
 

Real Estate Market Continues Gradual Recovery

 

 

Inventory of houses and condominium properties in the Vero Beach – Indian River County area decreased 2.9% from last month and have decreased 15.3% since July 2011. 

Total year-to-date sales are up 10% over 2011.  Year-to-date sales in all 5 categories improved.  Cash sales comprised 58% of the sales in June, which is down 10% from last month.  A good sign is that the 30 year mortgage rates, which are at an all time low, are finally becoming a little easier to get.  Overall county-wide sales only declined 2.9% compared with last month and increased 25% over June 2011. 

 

Inventory topped out at 3980 properties for sale in January 2008, over a 2 year supply in Indian River County, and have declined to 2318 at the end of July 2012, which translates to a 9.2 month supply.  This is still slightly a buyer’s market at the current absorption rate.  Remember, however, that a 6 month supply is commonly considered to be a balanced market favoring neither buyer nor seller, so if the current trends continue, we are approaching that equilibrium. 

Distressed sales, including both short sales and bank-owned foreclosure homes are currently 25%, about the same as most of this year.  However, the number of short sales is rising while foreclosures are falling even though the news media reports that foreclosures are rising.  However, banks are not necessarily repossessing these homes because it can be a liability if the home is empty or if there are improper procedures used during the foreclosure process. . Also, short sales sell for more that empty bank owned properties. Therefore, many of the homes that enter the foreclosure process are actually sold as cooperative short sales to the advantage of the bank as well as the owner/seller. 

 

The median price of properties in the Vero Beach – Indian River County area decreased by 5.6% to $134,000 compared to last month but increased by 11.6% compared to July 2011. Year-to-date, the median sales price on the island remains at $500,000. The median price is still volatile statistic  and may vary slightly up and down over the next several months. During the off season we typically have slower sales of higher prices houses..  Lower end home homes are showing an increase in sales because of declining inventories and increasing prices which are prompting Buyers to "BUY NOW."

 

 

Single family home sales on the Vero Beach island were 34% lower in June than last month but 27% higher than July 2011.  Inventory in this category now stands at 488, which at the current absorption rate is a 13.7 month supply of homes. Compared to 2011, year-to-date sales were up 12% compared to 2011.  

At the low end of sales this month, a 3 bedroom house on Holly in Central Beach sold for $273,800, and a 2 bedroom house in Old Orchid sold for $300,000.

At the high end, sales were down with only  6 sales over $1,000,000.  The top sale this month was an oceanfront 4000 sqft+ home in Smugglers Cove that sold for $3,050,000, 23% below the asking price. 

Other high sales were an oceanfront home in Porpoise Point for $2,800,000 down to $1,000,000 for a canal-front home in The Moorings.  We expect sales will slow down only slightly for high and low end Island single family homes, but may slow down more for mid-priced island houses from $500,000 to $775,000. Investors are buying at the low end and recent price reductions at the high end are making these properties quite attractive for affluent buyers.

 

Condo sales on the Vero Beach island were down 30% from last month but up 6% over July 2011. 

Year-to-date condo sales on the island were up 10% compared to 2011.   

The highest sales this month were $550,000 for an oceanfront condo in John's island and $365,000 for a 3rd floor Seaquay condo.   At the low end, there was a sale in Porpoise Bay for $135,000 and one in Pebble Beach Villas for $161,000. Two condo-hotel room units sold in the Vero Beach Hotel and Club for $235,000 and  $270,000

Sale of condos on the island are expected to remain slow the rest of the year.  There are only 29 condos now under contract to sustain future sales levels.

 

 

House sales Indian River County-wide were down 23% last month compared to the previous month and even compared to July 2011.  However, year-to-date sales were up 12% over the same period in 2011. 

 

On the mainland 38% of the houses sold this month for under $100,000, about the same as last month.  The high sales were $825,000 for a 3000+ sqft waterfront home in Grand Harbor, $585,000 for a 3000+ sqft riverfront home in Pelican Point and $515,000 for a 3000+ sq ft home in Coventry island..  These were the only mainland houses that sold for over $500,000 in June.  The low end sales were mostly southeast of Oslo Road.  Sales should stay strong for low and mid-priced homes as mortgage rates are low and investor sales are still strong. Rental rates are currently increasing but may taper off as mortgages are gradually becoming more available so more people are jumping into the buying market as prices begin to rise.  The media is saying that it is now better to own than to rent.

 

 

Condo sales Indian River County-wide were down 71% over last month but up 10% over July 2011.  

 Year-to-date condo sales are up 3%.  

7 sales in Vista Royale/ Vista Gardens ranged from $20,000 for a 1 bedroom to $63,000 for a 2 bedroom unit.  Other low end sales were in Tropic Groves for $30,000 and $54,000. 2 units sold in Laguna for $55,000 and $58,000.  At the high end, a unit sold at Royal Palm Point for $850,000 and one in River Village at Grand Harbor for $710,000. 

Sales of mainland condos should hold steady as there are 40 units under contract including 10 at the Vista complex. However, 30 of the 40 units are listed under $100,000. 

 

 

 

There were 13 sales on North Hutchinson Island in June.  This is the best June in 8 years.  Sales were down 23% compared to last month but were up 44% from July 2011. 

Year-to-date sales are up 12.9% from last year.  

 At the low end, a 2 bedroom 5th  floor riverside unit in Atlantic View sold for $75,000 and a 2 bedroom unit on the 5th   floor sold in Ocean Harbour South for $134,000.   At the high end, 2 more units sold in Oceanique,  for $448,000 and $ 679,000, while 2 homes sold in Queens cove for $685,000 and $420,000. 

Traffic through the NHI office and showings are starting to slow, but there are now 35 properties under contract, so closings should hold up for a while until fall buyers arrive to buy for next winter.

Signs of Market Recovery

 

Inventory of houses and condos in the Vero Beach Florida - Indian River County area decreased 5.4 % from last month and have decreased 11.1 % from May 2011. There has been a 1.6% inventory decrease so far this year.

 

Overall county-wide sales went up 9.6% compared with last month and were up 10.7% compared to May 2011. Currently there is a 10.2 month supply of properties based on year-to-date absorption rates.

 

Total Year-to-date total sales are up 3.9% over 2011. Year-to-date sales were up in the both the Vero Beach island and the mainland house categories but down in 3 condo categories, Vero Beach island and mainland and North Hutchinson Island. Most condos are second homes and many Buyers are not yet convinced that the economy is good enough to take the leap to a 2nd home.

 

The largest inventory drop was in houses on the mainland, which is good because those homes are primarily purchased by full time residents instead of snowbirds. This trend must continue to further reduce inventory as Barrier Island home sales tend to drop off during the summer month off-season.  

 

We believe that because of the media touting a better economy, and a nation-wide increase in home sales. Sellers who have been holding back are now putting their properties on the market.  However, Sellers are hesitant to sell for big discounts now because they see the light at the end of the tunnel indicating that the value of their property will increase in the future.  Cash sales comprised 62% of the sales in May, which is down from last month and about the same as last May. The number of cash sales are high considering 30 year mortgage rates are at an all time low.

 

Distressed sales went up from 24% to 30%, but this is still low compared to 2010 and 2011. Distressed sales include both short sales and bank-owned foreclosure homes. The number of distressed sales has been consistent over the last 6 months, but the number of short sales is rising while foreclosures are falling. A short sale is normally a safer alternative and less expensive alternative for the bank and much less damaging to the credit rating of the owner. Most of the time the owner still occupies the home during the short sale so there is less chance of property damage or deterioration.

 

There is also a decrease in the number of home owners who are falling behind on their mortgages although there are still a high number of homes in the foreclosure process.

 

The affordability of housing is at an all time high because of low home prices and low mortgage rates.  Because of this and the prospect of rising prices, more Buyers are coming into the market and investors are making a last ditch effort to buy low and rent or remodel and flip the property for a profit. The banks are aware of these market dynamics and are expected to continue to use caution to avoid flooding the market with too many foreclosures.

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We have personally seen the number of multiple offers on the same house increase significantly, which is another indication that prices are at very attractive levels as buying activity is warming up.

 

 

 

The median price of houses in the Vero Beach-Indian River County area increased by 7.9% compared to last month and increased by 8.7% compared to May 2011. The median has also moved up 15.4% since the first of the year and is the highest since October 2009.

 

However, this is still a volatile statistic. Median means there were an equal number of houses sold above and below this figure. 

 

We believe that prices will generally continue to slowly increase in our area during the next year. Likely there will be a dip during the next few months as the sales of higher priced barrier island home slow down somewhat off season.  However, prices of lower end homes are going up because of the competition between investors and resident-owners working with reduced inventories. 

 


 

House sales on the island were 50% higher than last month and 29% higher than May 2011. This was the best May in 10 years and the 2nd best month in 10 years.

 

Year-to-date sales were up 65% compared to 2011.

 

At low end of sales this month were a couple of 2 bedroom houses in Sea Oaks that sold for $240,000 and $272,000 and a house in Peppertree that went for $205,000.

 

 At the high end, sales were up, with 14 sales over $1,000,000. The high sale was an ocean front 10,000 sqft+ home that sold for $15,600,000 that had been on the market for only 8 months but was listed for $25,000,000. This goes to show you that you should just make a reasonable offer.  You never can tell.   

 

Other high sales were in Johns Island for $2,800,000 and Seagrove for $2,375,000.  We expect sales will slow down just a little for high and low end Island houses but will likely slow down more for mid-priced houses from $400,000 to $700,000. Investors are buying at the low end and price reductions at the high end are making these properties attractive for the affluent buyer.

 

 

 

 

House sales county-wide were up 12% compared to the previous month and up 10% compared to May 2011. This was the best May in 9 years.

 

Year to date sales were up 7.5% over the same period in 2011.

 

On the mainland, there were 30% of the houses sold for under $100,000, a 10% reduction from last month. The high sale was $650,000 for 2700 + sqft home on 3 acres with a lake. It was the only mainland house that sold for over $500,000 this month. Sales should stay strong for low and mid-priced homes as mortgage rates are low and investor sales are still strong as a result of strong demand for rentals. Rental rates are rising but should back off in the near future as mortgages are gradually becoming easier to get and more people are jumping in to the buying market as prices begin to rise. 

 

 

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