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.
