Recent 2008 sales show a slight decrease in the inventory of available homes for sale and slightly improved sales compared to the last few years. The sales graphs below show the current number of active listings and the number of real estate sales each month in 2004, 2005, 2006, 2007 and up to the end of April 2008.
(Updated June 1st, 2008)
LOCAL REAL ESTATE UPDATE
Local Real Estate Update
Island Homes: As shown in the above graph, sales of homes on the island decreased by just over 33%. However, there are 290 homes under contract, which looks good for next month. There were 7 homes that sold for over $1,000,000. The highest were in Windsor and Sanderling with both selling for over $2,500,000. Those higher end buyers are looking for bargains. The average time on the market for Island homes sold in May was 550 days, and the sale price was 30% below list price. One oceanfront home was on the market for 38 months and finally sold for 34% the original list price. Another oceanfront home sold for 42% below list. Sellers should list at a competitive price that reflects current market values with a Realtor who has an extensive marketing program if you are motivated to sell quickly. Three homes that sold in May were on the market for less than 5 months and sold at 91% of list price.
Condo/townhome sales on the Island pretty much held their own. This graph of condo sales shows down 20%, which has been the historical pattern for this time of year. May sales were actually higher than in May for the 2 previous years, and there are 22 properties under contract, which is good news for future months. High sales of $700,000 to $900,000 were in the Bermuda Club and The Moorings. Lower priced units sold for around $200,000 in Riverwalk, Oceanside and Vero Towers. Inventory decreased slightly. 
Mainland Homes: Sales of single family homes on the mainland were lower than the previous month and the lowest May in 5 years. MAINLAND prices ranged from under $85,000 in the Sebastian area to $830,000 for a 5 BR home on 5 acres in the SW part of the county. This particular home was on the market for 2 years and was originally listed for $1,390,000.Below are some interesting facts about property values on single family homes in Indian River County.
Median sales price May 2004 – $190,000
Median sales price May 2005 – $230,000
Median sales price May 2006 – $240,000
Median sales price May 2007 – $205,000
Median sales price May 2008 – $185,000
We are back to 2003/2004 property values!
On a positive note, current inventory of mainland single family homes is down by 52 to 2562.
Condo/townhome sales in the county decreased approximately 33% to 42 sales as shown on the above graph. On the MAINLAND at the high end, 2 sold in Harbor Village at Grand Harbor for around $500,000, and on the low end of the price spectrum 3 sold in Vista Royale for under $50,000. Last month there were 14 units sold in Vista Royale, which makes up most of the shortfall this month. It is evident that the snow birds have gone home! This creates buying opportunities.
North Hutchinson Island: The number of properties sold on NHI were higher than last month and higher than the previous year. All of the sales on NHI this month were condos. Prices ranged from around $800,000 in the Altamira to $200,000 and below for Ocean Harbor North and The Sands Lakeview. There are only 8 properties under contract, which is lower than previous month but is typical for this time of year. The next few months are expected to be slow as traffic declines because the snow birds have gone North. Overall time on the market was long, and the % sales price to list price was low. Buyers are looking for bargains regardless of list price. Sale prices on NHI are pretty close to 2004 prices also.Overall analysis: Inventory in 4 out of 5 categories was down, which would seem to indicate better conditions. However, in some cases properties were taken off the market because they did not sell for a price that would satisfy the seller. Most buyers are looking for a bargain! Some sellers can wait until prices go back up. Foreclosures in all areas are driving prices down. It is not unusual to see a foreclosure sell for 40% less than the mortgage amount on the property. This is can be up to 50% of the selling price (property value) a couple of years ago. Banks do not want to own property. Like most corporations, they will write off their losses ASAP so the loss will not affect them in the future. Developers are still cutting prices on existing inventory homes or homes that were under contract but not sold.
Many experts are suggesting that now is the bottom of the market. We will only know for sure looking back from the other side.
Contact us with your Vero Beach and Hutchinson Island real estate questions. We will be happy to assist you.
Best regards,
Jeff Mitchell and Ginny Mitchell ABR, GRI, e-PRO, CRS
Coldwell Banker, Ed Schlitt L.C., 3465 Ocean Drive, Vero Beach, FL 32963
www.MyVeroBeachRealEstate.com www.MyHutchinsonIslandRealEstate.com
Mailto:Ginny@MYVEROBEACHREALESTATE.COM 772-321-3355 (Indian River County) 772-359-9335 (St. Lucie County)Out of town clients: Toll Free number 866-251-5402