The median price of houses in the Vero Beach - Indian River County area was essentially the same compared to last month and April 2011. Over the last 3 years, the median sale price has stayed approximately the same. This is an indication that prices are bottoming out.  However this is still a volatile statistic. Median means there was an equal # of houses sold above and below this figure.  Only 2 more sales above or below the $139,000 price would move the median up to $140,000 or down to $137,000.

There are 345 houses under contract priced below $150,000 and only 249 homes under contract that are priced higher, which would indicate that the median may be going down in the future as these lower-priced homes affect the median.  Remember that the median does not indicate the increased or decreased value of any specific home.

Overall county-wide sales dropped fractionally compared with last month and were the same as April 2011. Currently there is an 11.7 month supply of properties based on year-to-date absorption rates.

Year to date total sales are up 1.3% over 2011.

The largest inventory drop was in houses on the mainland, which is good because those homes are primarily purchased by full time residents instead of snowbirds. This trend must continue to further reduce inventory as Barrier Island home sales tend to drop off during the off season.

Until this year, we had a pretty consistent inventory pattern. Inventory increases prior to the tourist season and then decreases because of the high sales through the first 5 months of the year before it starts to go back up.  This year, even though year-to-date sales were the same, the inventory has continued to increase. We believe that because of the media touting a better economy, and a nation-wide increase in home sales. Sellers who have been holding back are now putting their properties on the market.  Also, Sellers are hesitant to sell for big discounts now because they see the light at the end of the tunnel indicating that the value of their property will increase in the future.

Cash sales comprised 65% of the sales in April, which is a little bit lower than last month but still higher than last year. This is high considering 30 year mortgage rates are at an all time low of 3.84%.

Distressed sales decreased to 24%, which is low compared to 2010 and 2011.  Distressed sales include both short sales and bank-owned foreclosure homes. There is a decrease in the number of home owners who are falling behind on their mortgages, but there are still a high number of homes that are in the foreclosure process. The percentage of distressed sales is therefore expected to increase over the next 6 months.

The affordability of housing is at an all time low because of low prices and low mortgage rates. However, this will probably not last for long as the improving job market and increasing rents will increase sales and drive the inventory down and the prices up.  In the Miami area, prices are up over 4% compared to the first quarter of last year.

We have personally seen the number of multiple offers on the same house rise significantly, which is another indication that prices are at very attractive levels, and buying activity is heating up.

Traffic and showings have dropped off in April from last month, but there are 37 condos under contract so closings should hold up for the next few months.

Communicate with all parties involved well before closing day. Ask questions to understand the process and make sure everything know what needs to happen to help your closing in Florida go smoothly. Don’t be afraid to ask a lot of questions.   Your Realtor is there to help you through this.

Understand that human errors happen and prepare for them. You need to prepare ahead. There are many people involved in the closing process. The more people involved, the more likely there is for human error, but the more you prepare for it the better off you’ll be. Review the loan documents in advance if possible to help catch problems before the end of the process. If you review the loan documents and the HUD statement ahead, you will also know how much money you need to bring to closing.  You should ask whether you need to bring a cashier’s check to closing or wire the money the day before, for example.  Late afternoon closings especially on a Friday and/or the end of the month may present a problem with money transfers since the transfer usually needs to post to the bank before 3 pm to be cleared for closing.

Take closing day off work.  You will probably schedule a walk-through of the property to be sure that everything that should be removed is gone and everything that should be in the home, such as a refrigerator or chandelier, for example, is there.  Sometimes homeowners or movers make mistakes.  If all goes well as the walk-through, and you arrive at the Title Company or Attorney’s office on time,  you could complete closing in 30 minutes with a cash purchase or usually under an hour with a mortgage.  However, it is best to plan time for worst case scenario just in case and hope for the best.

Expect the unexpected. Watch for typos in all documents. Check the numbers carefully.  A simple typo could become a big issue if you don’t catch it before you sign the documents.  If possible schedule your appointment early in the day, so that if something needs to be changed on your loan or other documents, there will be enough time to complete the change that same day.

Following these tips and talking to your Realtors Jeff and Ginny Mitchell will help you have a smooth closing in Vero Beach, Hutchinson Island, Indian River Shores, or Indian River County.

The highest sale this month was $1,770,000 for a condo in OrchidIslandbut then dropped off to $600,000 for a unit inOceanShores. These were the only sales over $500,000. At the low end, one unit sold in Ocean Club for $91,000 and there were 2 sales in Pebble Beach Villas for around $143,000.  We still look forward to a good selling market for Island Condos for the next 2 months.

At low end of sales this month, were a couple of fixer-uppers in The Moorings and in Anglers Cove that sold in the $240s and a 2/2 in Sea Oaks that sold for $179,000.  At the high end, sales were steady with 4 sales over $1,000,000. The high sales were a 7000+ sq ft home inOrchidIslandthat sold for $2,400,000 and a 3500+ sq ft house inWindsorthat sold for $2,200,000. InOrchidIsland2 more homes sold for $915,000 and $1,000,000.  We expect sales prices will hold steady forIslandhouses, especially at the mid and high end.

Until this year, we had a pretty consistent inventory pattern. Inventory increases prior to the tourist season and then decreases because of the high sales through the first 5 months of the year before it starts to go back up.  Last year was a repeat except throughout the year inventories dropped more overall than in previous years. This year, even though year-to-date sales are up, the inventory has also continued to increase. We believe that because of the media touting a better economy, and a nation-wide increase in home sales, Sellers who have been holding back are putting their properties on the market.  Also, Sellers are hesitant to sell for big discounts now because they see the light at the end of the tunnel indicating that the value of their property will increase in the future.

Cash sales comprised 68% of the sales in March, which is the highest we have seen.

Distressed sales inched up a bit to 30%, which is still low compared to 2010 and about the same as 2011.  Distressed sales include both short sales and bank-owned foreclosure homes. An increase in bank-owned properties is expected this year as a result of the court settlement of most of the Robo-signing cases that prompted the banks to hold back on new foreclosures. Some of the pundits believe that 2012 will have more foreclosures than 2010.

We do not agree.

Banks are getting more efficient with the government HAFFA program and Coop Short Sales, so we are forecasting fewer new foreclosures than expected and more short sales and deed-in-lieu cases this year. Foreclosures take too long inFlorida because they go through the courts, and therefore are also expensive. A short sale in most cases nets the bank the same money but the owner lives in the property and pays some of the bills.  In a deed-in-lieu arrangement, the bank allows the owner to give up the deed without a foreclosure, and the expense of the foreclosure.  The credit effect on the owner is significantly less if they cooperate with a short sale or a deed-in-lieu.  However, while in many cases the bank requires a seller contribution with a deed-in-lieu arrangement, they will usually give some moving relocation expense money to the owners with a short sale.