Ginny Mitchell, Coldwell Banker Realtor, ABR, CRS, GRI announces compelling market indicators in the Vero BeachFloridareal estate market.   After years of excessive numbers of properties on the market, the Inventory of houses and condos in the Vero Beach area have now dropped 18% from September of 2010 and real estate sales increased 9.5% over September 2010. Since the peak inventory in January 2008, inventory has increased each winter when the tourist season starts and then moved downward through the first half of each year to bottom out in mid summer.  In the last 3 years, inventory has turned upward after the winter season sales, but this year inventory has continued to fall.

The median price of houses in the Vero Beach Indian River County area decreased to $120,000 in September, a 4.2% reduction from September 2010. This is the lowest median price in the last 5 years, the same as 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 is influenced by the number of high or low priced homes sold in a certain period. The size of houses selling are smaller than they were 4 or 5 years ago.   We believe that the decline of prices is at or near bottom inVero Beach, and that this low median price indicates a trend that many buyers are moving to lower priced homes and smaller homes. There are large numbers of foreclosures waiting to hit the market, but we feel that many buyers also waiting.

Condo sales on the island  were down 50% from the previous month but were up 28% from September 2010.  Year-to-date condo sales on the island are up 13% over last year.  The highest sale this month was just $470,000 in the River Mews at the Moorings–again a slow month for high priced condo sales.  At the lower end, two sold in Del Mar for $70,632 and $80,000. Island sales in general are normally slow at this time of the year, and this year as not many tourists are visiting.

Single family home sales in Vero Beach – Indian River County-wide  were up 2.3% compared to the previous month and up 17% compared to September last year.  Year-to-date sales were up 16.2%. On the mainland, there were 29 houses that sold for under $50,000. There was one sale over $500,000, a house in St AndrewsIsland at Grand Harbor that sold for $1,000,000. The next highest sale was a 5 bedroom house on 10 acres in Fellsmere that sold for $470,000.

There is a 9.6 month supply of houses for sale on the mainland. This is lower that the overall county absorption rate which again is an indicator that lower priced and smaller properties are more in demand than usual in the Vero Beach – Indian River County area.

Vero Beach Florida Condo sales Indian River county-wide  were down 40% from last month but up 20% over September 2010. Year-to-date condo sales are12% ahead of last year. On the mainland there were 11 sales under $50,000, a small drop from last month. Eight of these were in Vista Royale,  including a 1 bedroom unit for $15,900, a real bargain. There were 3 condos that sold for over $100,000. The highest sale was a 3 bedroom 3 bath atGrand Harbor inHarmonyIsland for $175.000.

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.  

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.

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.