Vero Beach Florida Homes

Vero Beach, FL Real Area Estate Market Update – July 2009

Median Home Prices in Indian River:

June 2008—$185,000

June 2009 — $128,000 – 41% drop

Median Home Prices in Florida:

June 2009 —$144,000
June 2008—-$204,000 –29% drop

Homes for Sale in Indian River County:  2264

Homes Sold in June: 161

Condos for Sale in Indian River County: 965

Condos Sold in June:  35

Indian River County:

Bank owned properties—556 properties

Properties In foreclosure—2044 properties

As home prices in the Vero Beach, Florida area are decreasing, sales overall are increasing.  There are 2264 homes for sale and 161 sold last month, which means there is a 14 month supply at this rate of sales. Condos are not progressing as quickly with 965 listed for sale and only 35 sold last month.  This is a 27 month supply.  Although the current absorption rate predicts a 1 (single family homes) to 2 year (condos) supply, if the sales rate continues to increase, the supply will be depleted earlier.  A 6 month supply is considered to be a balanced market.  Unlike the years leading up to and including the first half of 2005 when we experienced a seller’s market, right now we still have market conditions that favor the buyer. 

Island home sales of 31 total for the month show a nice increase over last month and last year June 2008. In fact it was the highest sales month since June of 2006. Low prices are the primary reason for the sales increase. Two nice oceanfront homes sold for $1,967,750 and $2,165,000. There were 15 island homes that sold for under $500,000. Time on the market is decreasing on newer listings and as prices are reduced on old listings they are also selling at a much better pace.  There are currently 567 homes for sale, down 33 from last month.

Island condo sales held their own level with last month and at 13 total sales are similar to the June sales over the last 4 years. At the low end, a couple of condos sold in Park Shores for $150,000 and $175,000.  At the other end, 2 condos sold in the Moorings for $480,000 and $500,000. Selling prices for the most part are at or close to 2004 levels.  The number of condo and townhomes available dropped 22 units to 449 currently listed for sale. 

Total homes sold in the county at 161 this month dropped from last month but remained at levels higher than June 2008 and 2007. However, prices have fallen substantially as noted in the general comments. On the mainland there were 49 homes that sold for $100,000 or less and only 8 homes that sold for over $300,000. The highest price home that sold on the mainland was again in Grand Harbour at $725,000. This home was on the market for 17 months and originally priced at $995,000.  The number of single family homes currently for sale dropped down 34 to 2264 total. 

Condo and townhome sales countywide at 35 sales fell from the previous month sales and were similar to June sales over the last 2 or 3 years, typical for the months during the non- tourist season. On the mainland, there were quite a few Vista Royale units that sold under $50,000. On the high end, 2 units sold on Tarpon Lane east of Indian River Blvd—one canal-front for $365,000 and one riverfront for $395,000.  The riverfront unit sold for $627,000 in December of 2004.  There are 965 condos and townhomes for sale down 98 from last month.

Hutchinson Island experienced a nice increase in sales this month–8 condos sold, which was the highest month in over 1 year. Prices were attractive, which is the main reason for the increase in sales. The best deal was Seaward on the 10th floor for $187,000. Two units sold in Tiara, # 405 at $295,000 and #1402 at $330,000. A 6th floor north corner unit  in Ocean Harbour South sold at $220,000. Ocean P earl # 202 sold for $422,694. Sands Oceanside #1103 for $260,000 and Barclay #701 for $275,000. The new complex, Oceanique, which does not put their sales on the MLS, now has closed 22 of the 146 units in the complex, according to tax records.  At the current absorption rate, there is still approximately a 3 year supply of North Hutchinson Island condos for sale.  If sales continue to increase, however, the supply could be depleted sooner.  The number of properties available dropped 42 from last month to 227. 

These days, most of the listed homes for sale in Vero Beach, Hutchinson Island, or Indian River Shores are all about building a family future. Savvy buyers know that the market is theirs, and they can bargain for things like better school districts, home improvements, and other amenities that make owning real estate in Florida great. However, when the Vero Beach real estate market boasts more homes than there are buyers, there’s another advantage: homes for investment opportunities are cheaper and have greater potential than ever before.

First-Time Homebuyers in Vero Beach, Hutchinson Island, Indian River Shores: If you’re in the market for the first time, buying a home as an investment is a wonderful opportunity. Not only are there federal funding options available for first-time buyers, but the low average cost of homes right now means that you can get more Florida home for your dollar. This is especially true if you’re looking for a home to live in for a few years. By buying a house now, you can have a place to call home and the potential to sell it for profit five, ten, or even twenty years from now.

Vero Beach Home Flipping: “Flipping” a home, or buying a house and fixing it up to increase the resale value, has been made popular by television shows and success stories that boast of tens of thousands of dollars virtually overnight. However, the process of fixing up a house is a much larger task than it at first appears. If you plan to flip a house as a way to earn a living, make sure you know exactly what the construction projects will entail and how you will finance your way through the process for the entire time it might take to resell your investment home.

When Buying FL Real Estate, Timing is Everything: As a financial decision, buying real estate is often best taken advantage of as a long-term investment. After all, it can be difficult even for professionals to predict the Vero Beach real estate market. That’s why one of the best ways to turn a profit on a Florida home is to plan on living in the home or renting it out for upwards of 10 years at a time. It’s one of the best ways to guarantee an increase in your investment, and to enjoy yourself – and your family – while doing it.

The most important thing to remember before delving into FL real estate as a way to make money is that there is no quick and easy road to riches. The recent housing bubble burst is perfect evidence of this, and many people learned the hard way that buying a home as an investment, like any financial decision, takes time, planning, and a little homework.