The median price for homes in Indian River County stayed constant overall, but sales in 4 out of 5 categories fell. The most probable explanations for this are;
· The original expiration date for Federal tax credits expired at the end of June Even though the tax credit date was extended, the vast majority of qualified closings took place in June.
· Financing is still hard to get unless you are very well qualified. During June, the last month for available financing figures, cash sales out paced mortgage sales by a little more than 2 to 1. This ratio is higher as the price of the property goes down. Investors are paying cash, and the banks and many private owners will take a bit lower priced cash offer rather that take a chance that a mortgage will not be approved.
· The public is very conservative with their money. Not nearly as many 2nd homes are being purchased. Smaller homes are being purchased.
Of the 172 homes that sold, there were 30 short sales and 40 were bank owned. A total of 41% of the homes sold were distressed. However, the good news is that 3/2/2 houses in the $100 to $150,000 range are increasing in price, as the inventory of homes in this price range is decreasing faster than larger more expensive homes, and the distressed market keeps adding to the inventory of smaller less expensive homes.
2010 August Vero Beach -Indian River Co Median Real Estate Update