May 07 2010
2010 May Vero Beach, Florida Real Estate Market Update
The median price of homes in Indian River County declined 9% from the previous month and 13% from April 2009. We believe this is because of the large number foreclosure and Short Sales properties that investors and first time buyers can afford to buy to live in, rent, or renovate and flip. These lower priced homes are selling. Public employees such as teachers, police, and fire and emergency workers can now afford to purchase a home where they work instead of having to rent.
Foreclosures and Short Sales will be around for another few years.
· 23% of all Florida mortgages are delinquent or in Foreclosure
· 49% of the sub-prime loans from 4 to 5 years ago are in or going into foreclosure
· Many adjustable rate loans and ‘interest only’ loans are now reaching their adjustment points
· Because of unemployment, many prime loans and now starting to default
· During the last 5 years, sub -prime and no down payment loans have almost disappeared, but FHA and Rural Development loans have picked up some of this slack. These government backed loans can require zero to 3% down payment. Many mortgages are ripe for delinquency as many of these mortgage holders will need to sell their houses even if they are still employed but are forced to move or sell because of other reasons. Remember home values in many sectors are still decreasing and some these families will have sell their property as a short sale.
If you are thinking of selling your property and may be put in a position of a Short Sale or a foreclosure, please call us to help you understand the different consequences between a short sale and a foreclosure. We are both trained distressed property experts.
2010 May Vero Beach Florida Real Estate Market Median Price
Sales of Island homes in Vero Beach were down 8% from March but 25% better than March of 2009. Sale prices ranged from 4 sales under $300,000 in the Central Beach area to a high of $2,750,000 for an oceanfront home in Castaway Cove. There were also 5 other island houses that sold for over $1,000,000. There was one bank owned sale but no short sales in this group. There is now a 25 month supply of Island houses for sale at present absorption rates.
Sales in April increased 24% over the previous month and 14% over April of 2009. Many of the Vero Beach Island condo sales are purchased by part time residents and April closings are the result of contracts that were written earlier in the year during the tourist season. There were 7 sales under $200,000, 3 in Vista Del Mar. The high sale was an oceanfront unit on Beachside Drive in Orchid Island for $1,800,000. There were 4 bank owned sales and no short sales in this category. There is presently a 15 month supply of condos for sale on the island at the present absorption rate.
County wide sales of houses dropped 8% from the previous month but were still 23% higher than April of 2009. April was the best sales month in 5 years, and we should see this trend continue for another couple of months because of houses closing prior to the June 30 deadline for qualifying for the tax credit. On the MAINLAND there were 66 homes that sold for under $100,000, pretty much spread throughout the county. There was only one home that sold for over $500,000 on Tarpon Drive near Miracle Mile. There were 36 bank owned sales and 37 short sales on the mainland, 46% of the total sales. There is a 15 month supply of houses for sale in Indian River County at present absorption rate.
Sales of condos county wide increased 28% over the previous month and 21% over April of 2009. On the MAINLAND sales prices at the low end moved up a little. There were only 6 units that sold for under $50,000, 3 in Vista Royale. There were 3 more that sold in Vista for over $50,000. At the high end of the market a 2nd floor unit sold in Palm Point for $804,000. However, this sale is a disappointment as the unit was purchased for $2,050,000 in 2005 and had been on the resale market for 24 months, finally selling for approximately 25% of original list price. Two other units have sold in this subdivision in the last 6 months under similar circumstances. There were 3 bank owned sales and 15 short sales in this category. There is approximately a 13 month supply of condos for sale in Indian River County at the current absorption rate.
