Year-to-date sales have increased by 45% over last year. Inventory of units listed for sale increased a little from 221 to 225. This inventory does not include the approximately 59 units for sale in a new condo development. 

Condo sales ran from $120,000 for a 2nd floor 1500 sq ft unit in Atlantic View that was a distressed sale to $600,000 for a 2nd floor 2833 sq ft corner unit in Oceanique.

There was one single family canal home on Queen Bess that sold for $431,000. The high sales for the year were the 12 floor in the Paragon for $680,000 and a home in Queens Cove for $530,000.

North Hutchinson Island Real Estate Market Update 2004 to 1-1-2012

On the mainland the prices seem to be drifting up a little as the low end sales in Vista Royale/Gardens ranged from $25,500 for a 1 bedroom to $76,500 for a 2 bedroom unit. There were 7 sales in Vista Royale/ VistaGardens which was down from earlier months. On the mainland at the high end, there was a sale in Vista Villas for $142,000 and one at HarmonyIsland in Grand Harbor for $145,000.

Inventory of mainland condos decreased to 690 units for sale from 721 the previous month.

On the mainland, there were 51 houses that sold for under $100,000, 27% lower than the previous month.  Again most of these sales were in the south end and the northwest side of the county. The high sale was a canal front in Vero Isles at $440,000 and a 3500+ sq ft house inn Oak Harbor $510,000.

County-wide inventory of single family houses decreased 100 units from the previous month.

There is a 9.34 month supply of houses for sale on the mainland. This continues to fall and is lower than the overall county absorption rate, which is an indicator that lower priced and smaller properties are more in demand. Especially with the expected recapture of equity (appreciation) over the next few years, investment property in a low to mid priced house is expected to produce a small positive cash flow from the investment as rents are increasing.

Small houses cost less, not even buy but also to heat and cool. Home projects such as painting cost less in a smaller house, even furnishing and decorating costs more in larger homes. Hutchinson Island has beautiful homes that aren’t enormous, but are very spacious.

Small homes in Indian River Shores save time. A large house takes longer to clean and maintain the yard. You can use the extra time to do something you enjoy like explore Florida.

A smaller home in FL means less clutter. You wont have unlimited amounts of storage space, so you will be forced to simplify your home.

When making updates, like investing in new countertops, you can splurge because there is less space to cover.  You can have quality upgrades.

Smaller homes in Vero Beach, Florida are easier to sell. Buyers are interested in energy-efficient homes. Ginny Mitchell can help you find the home of your dreams no matter that size.

Year-to-date single family home sales on the island have increased 31.8% over last year.  At the low end there was a 2 bedroom house on Coco Plum Lane that sold for $121,000, one on Sabal Palm Court that sold for $180,000, and one on Date Palm the sold for $280,000.  At the high end, only one sale was over $1,000,000, down from 4 last month. This was a 5000+ sq ft house in the Anchor at the Moorings that sold for $1,050,000. Next in line was a 3500+ sq ft house inBermudaBay that sold for $895,000.  We expect a good selling season this winter and believe prices will hold for Island Houses, especially at the mid and high end.

Barrier Island single family home inventory was down 2% over the previous month and should continue to fall during the season.

Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median also influenced by the number of high or low priced homes sold in a certain period. We have also noticed that more houses being sold are smaller in size than they were 4 or 5 years ago. This will also affect the median price.

Total sales increased compared to 2010 in all Indian River categories and adjacent Hutchinson Island.

We believe that the inventory increase in the October and November was a result of Sellers listing their properties prior to the tourist season, which is the most active time of the year to sell. The decrease of inventory in December was a result of high sales, despite the seasonal new listings now on the market. Inventory is expected to continue to decline, which historically happens during the first 6 months of the year.

Cash sales comprised 59% of the total sales, which was down 10% from November. Distressed sales comprised 35% compared to 38% in November. Distressed sales include both short sales and bank-owned homes. We expect the demand for homes will continue to increase in the future. 

The cost of owning a home is more affordable now than any time in the past 10 years. In many areas buying is now cheaper than renting. Low home prices and low mortgage rates create a once-in-a-lifetime opportunity for Buyers. In 2001 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, a buyer can get a $350,000 mortgage for the same monthly payment.  Also the median price of a home inFloridaas a whole and theTreasureCoastis approximately the same. A 30 year mortgage in December of 2001 had a 7.28% interest rate. Today’s rate is around 3.91%. The Federal Reserve indicates they will keep rates low through 2013. They did not say they will keep them at present levels, however. Expect mortgage rates to inch up in the coming months. Freddie Mac says the 30 year rate will be at mid 5% levels by mid 2013.   However, those rates will still be good compared to historical rates. In 1981 the 30-year rates averaged more than 16 percent and did not get below 8% until around the year 2000.

Also, sales and prices should continue to rise because many baby boomers and retirees, who had put off moving to Florida in the last 5 to 6 years because of the economy, are now re-considering their move as the stock market inches up, and their savings accounts are being replenished. This group of potential buyers plus the normal retirees over the next few years will give the housing industry in Florida a “double dose of sales.”

The median price of houses in the Vero Beach Indian River County area increased 25% from $108,000 in October to $132,000 in November. There was also a substantial 10% increase from November of 2010.  We are now back close to the average median price over the 3 years. This is good, indicating that prices are stabilizing!

Remember that the median price change does not necessarily mean that the value of an individual house has increased or decreased. The median also influenced by the number of high or low priced homes sold in a certain period. We have noticed that the sq ft sizes of more houses being sold are smaller than they were 4 or 5 years ago. 

Inventory of houses and condos in the Vero Beach Florida Indian River County area moved up 9% from 2678 units for sale in October 2011 to 2702 in November. However, inventory has decreased 16.4% from November 2010. Overall county-wide sales decreased 2% compared with last month but increased 2% over November 2010.  Year-to-date county-wide sales have increased 15.3% over 2010. Sales have increased year-to-date in all 5 categories including Hutchinson Island.

Since the peak inventory in January 2008, we have established 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 midsummer, and then start to rise again. In the last 3 years, the increase in inventory has been quick to turn up after the winter season sales, but this year inventory continued to fall until October, which was the first month of inventory increase this year. November also showed a small increase. Cash sales comprised 69% of the total sales, which is about the same as October. Distressed sales consisted of 38% of the total, which is about the same as a year ago and about 40% higher than last month. Distressed sales include both short sales and bank-owned homes. We believe the demand for homes will continue to increase in the near future as mortgage rates are exceedingly low, home prices are at or near the bottom, and area populations are continuing to increase. 

Also, many baby boomers and retirees, who had put off moving toFloridain the last 5 to 6 years because of the economy, are now re-considering their move as the stock market inches up, and their savings accounts are being replenished. This group of potential buyers plus the normal retirees over the next few years will give the housing industry inFloridaa “double hit” of adrenaline.

Barrier Island single family home inventory was up 4% over the previous month as improved sales encourage more seller postponed listings.