May 16 2009
Vero Beach Real Estate Market Update - May 2009
Local Real Estate Update
As the sales graphs below show, April and May are historically the best sales months on the Treasure Coast of Florida because closings generally take place 30 to 60 days after the sales contract, and visitors are buying during their winter stay prior to going back home. In many cases this year, buyers were renters and attracted by the current low prices, they have now become permanent or seasonal residents.
Sales are still slow for homes on the Island. 2009, so far, is the slowest year in the last 6 years. In our opinion, this market has not come back compared to homes on the mainland because listing prices have not dropped sufficiently to reflect the present market conditions-4 of the 19 total homes sold on the island last month for approximately the same price that they sold for in 2002/2003, 2 of the homes sold for 62% and 75% of the 2005 sales price. It’s not all bad news for sellers though, as 2 homes sold for more than the 2006 prices. The balance of the homes were first time sales or the previous sale was prior to 2000. Time on the market is still high, and the sales price to list price ratio is still low. Inventory is down slightly but remains high at 631 homes for sale on the island.
Sales of 25 barrier island condos and townhomes more than doubled compared to the previous month but were still a little below sales in April 2008. April 2009 sales were more than the previous 3 months combined, but this is not entirely unusual because of the seasonal sales trends on the Treasure Coast of Florida. In general, sale prices were at 2003/2004 levels. List prices in this category have come down which is reflected by the increased sales and decreased time on the market. Inventory declined by 21 units and is still high with 478 townhome and condo units currently listed for sale.
County-wide home sales continued to climb as they have done for the last 4 months with 130 homes sold in April. The county-wide median sales price was $150,000. Prices on the MAINLAND ranged from 38 homes priced under $100,000 mainly in the North and South County area to 2 homes priced over $500,000 in Amelia Plantation and Grand Harbor. Prices are still coming down, and time on the market is also decreasing as both Buyers and Sellers become aware of the present market conditions; 28% of the homes sold in April were foreclosures. Inventory decreased by 43 in April with 2048 homes currently listed for sale.
A nice ray of sunshine. Condo sales countywide increased 53% to 60 total condo sales-the largest number of sales in 43 months. However, there were some very good bargains, especially on the mainland because of some developer price reductions. In Breakwater Point 5 units sold at less than 50% of the 2006 selling price. There were also 5 units at The Inlet of Sebastian that sold between $150,000 and $170,000. These units were advertised as a “bank liquidation sale” and were also sold at less than 50% of the developer prices a few years ago. Actually, 20 of the total of 35 units sold on the mainland were under $100,000.
Another so-so month in sales on N Hutchinson Island with 7 properties sold, 2 houses, one canal-front, and 5 condos. 2 sales were bank owned which sold for very buyer-friendly prices in the mid $200,000′’s. The other sales reflected prices lower than similar sales in 2004 and earlier. Property values are down compared to past years and list prices need to reflect these lower values to sell. With 246 active listings, inventory decreased this month by 31.