Ginny Mitchell, Coldwell Banker Realtor, ABR, CRS, GRI announces compelling market indicators in the Vero BeachFloridareal estate market. After years of excessive numbers of properties on the market, the Inventory of houses and condos in the Vero Beach area have now dropped 18% from September of 2010 and real estate sales increased 9.5% over September 2010. Since the peak inventory in January 2008, inventory has increased each winter when the tourist season starts and then moved downward through the first half of each year to bottom out in mid summer. In the last 3 years, inventory has turned upward after the winter season sales, but this year inventory has continued to fall.
Cash sales comprised 64% of the total sales, and bank owned and short sales were of 37% of the total, which is low compared to a year ago. We anticipate the demand for homes will continue to increase in the near future as mortgage rates are historically low and home prices appear to be at or near the bottom.
New construction is at a 10 year low, which drives up the demand for resale homes. In Indian River County the 2007 taxable value of new construction was over $700 million. Through the first 6 months of 2011, that taxable value is $89 million, which is up only fractionally over 2010. In general, the same ratios occur for St Lucie County.
Bank foreclosures are forecast to rise over the next year. However, many foreclosed homes are bought by investors and used as rental units for displaced homeowners. In Florida foreclose on a property typically requires an average of 687 days.
Yet, the population continues to increase. According to the 2010 census, Florida population 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. Population increases will continue to push inventory levels downward.
