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.
When a more balanced market approaches with about 6 months of inventory, and prices start to increase, we should then begin see a higher than normal appreciation. Had it not been for the housing bubble when prices overheated, prices would likely have continued at about 5% annual appreciation. Given a variety of indicators that include continued population increases inFlorida, low levels of new construction, and higher new construction costs, we anticipate that once the economy and real estate market recover, we will see a “recapturing of equity.” All these factors are encouraging home buyers to respond to the marriage of low interest rates and low prices to find their dream home inVero BeachFlorida.
