Jun 09 2009
Vero Beach and Hutchinson Island Real Estate Update June 2009
Real Estate Update June 2009
Time on the market is coming down for newly listed properties, but there are still many properties that are priced too high initially and stay on the market a long time. Where past sales are available, homes are selling now at 2003 and 2004 prices.
Island Single Family Homes showed an increase over last month’s sales. However, still the poorest YTD sales in 7 years with only 13 sales—20 homes sold for less than $500,000 with the lowest priced home selling for $300,000, a 2 bedroom home on Seminole Lane in Indian River Shores, and at the top end, a 4 bedroom 4 bath home on Ambersand Beach sold for $1,100,000. However, this sale was 45% below list price. Island home sales that closed in May totaled 24.
Another down month for Island Condo/Townhome sales—the worst May and year-to-date sales in 7 years with only 13 closed sales in May. This type of property, which could be generally classified as resort property or second homes, is not selling well in this economy. Sales ranged from just over $100,000 in Vista Del Mar and Vera Cruz to $1,000,000 in Baytree.
Mainland Single Family Homes demonstrated an increase in home sales to 168 closed sales in May over the previous month—the best sales month in 3 years. However, the median sales price was $135,000, which is a 31% drop from May 2008. In May 2008 the median was $184,900. Sales are increasing because homes are once again affordable to a larger percentage of the population, there are more investor purchases. The first time buyer incentive for $8,000 is just also helping. Mainland prices ranged from16 homes sold for under $50,000 mainly in the south county to a canal home in Vero Isles for $550,000 and one in the Polo Grounds for $400,000.
Mainland Condo Homes: Higher sales than last month with 46 closed sales in May, which was higher than the last 2 years. This increase is just on the mainland though. In our opinion, investors are taking advantage of the low price—24 of the 33 condos sold on the mainland went for under $100,000. Two bedroom units in Vista Royale went for under $33,000 and 1 bedroom units were selling for a little as $35,000. These are 2002 and 2003 prices. A couple more sold at The Inlet at Sebastian for $150,000 and $162,000. The highest condo sale price on the mainland was again in Grand Harbor for $269,000.
Only 4 sales this month on North Hutchinson Island, which is down from last month and down from last year. A short sale waterfront home that was in poor condition sold for $280,000, third floor in the Sands Oceanside sold for $200,000, one of the single units in the “Tri-Plexes” sold for $49,000, and a nice sale on the 4th floor of Ocean Pearl sold for $520,000. In general getting a mortgage on a condo is challenging. If the loan is to be underwritten by Fannie Mae or Freddie Mac, there are special association requirements that must be met concerning the % of rentals, the % of investor-owners, and the % of owners with past due maintenance fees. The general financial condition of the association is also reviewed. These requirements cannot be met by some buildings, and these requirements also increase the length of time to close. In one instance the closing was extended so long that another appraisal was necessary and the 2nd appraisal was lower, which required the mortgage to be resubmitted.
