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.

House sales county-wide were up 40% compared to the previous month and up 18% compared to August 2010. Inventory also decreased by 2.5%. In this category sales were influenced by the number of families moving in to the area.  Year-to-date sales were up 16%.

On the mainland,  there was only one house that sold for under $30,000 which was a bank owned fixer-upper in Vero Lake Estates. There were 71 houses that sold for under $100,000, which was up from previous months. The highest sales on the mainland were a 4500+ sq ft house on 5 acres that sold for $865,000 and a 3500+ sq ft house on 10 acres that sold for $645,000.  Inventory of houses on the mainland continue to drop at a faster rate than the overall county figures. There is a 10.1 month supply of houses for sale on the mainland.  This is just another indication that the lower and more moderately prices houses are in demand.

Condo sales county-wide  were up 40% from last month and up 63% from August 2010. Year-to-date condo sales are 12.5% ahead of last year. Inventory was reduced by 7%, but there still is a 19.3 month of condos for sale county wide. Again condos have the highest inventory and are slowest moving because they more often tend to be second homes.  On the mainland there were 8 sales under $50,000, 6 of these were in Vista Royale/Vista Gardens, including 2 one bedroom units for $22 and $23,000. Both were in decent shape. The other 2 that sold for under 50k were in East Gate and Villamar. The highest sales were at The Inlet at Sebastian for $200 and $212,000.  Palm Estates had 4 closings this month and the Fairways at Grand Harbor had 3 closings.

Inventory of houses and condos in Indian River County basically stayed the same, down by only 7 units, as overall sales slowed while many people are enjoying the summer weather and not thinking about buying or selling their homes. Since the peak inventory on January 2008, we have established a 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 has been quick to turn up, but this year inventory stayed flat. Let’s hope this trend continues. County-wide sales in all categories were down by 30% over June 2011 and down 8% from July 2010. Cash sales comprised 60% of the total sales, which is up from 56% last month and down from 65% a year ago. Distressed sales consisted of 37% of the total which is low compared to a year ago. We still 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 should drive up the demand for resale homes. In Indian River County the 2007 taxable value of new construction was over $ 700 million. In 2011, thru the first 6 months, that taxable value is $89 million, which, when annualized, it is up fractionally over 2010. In general, the same ratios occur for St Lucie County • Yes, bank foreclosures are expected to rise over the next year as the banks and courts better synchronize. Many of these foreclosed homes are being bought by investors and used as rental units for displaced home owners. • The population in Florida 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 People need to live somewhere whether they own or rent.

The median price of houses in the Vero Beach Florida – Indian River County area decreased 14% from $137,000 in June to $120,000 in July. There was also a 12% reduction from July 2010.  This figure is equal to the lowest median price in the last 5 years, which occurred in 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 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 dropped off substantially this month. Because the median has stayed fairly constant and the number of higher-priced sales have decreased, it is reasonable to say that we are at or close to the bottom of the slide in values. We believe that the decline of prices is at or near bottom, and that this low median price indicates a tend that buyers are moving to lower priced homes.