Ken Bradley
May 2024
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Market Conditions for VERO BEACH, Florida

Reported by Ken Bradley Florida HomeTown Realty Inc.

As of July 04, 2019.

Current Market Rating: 3



Current Price Trend: 3



Market Price Point segments in Vero Beach and vicinity determine whether it is currently a Buyer or Seller Market. Generally for homes priced under $250,000, it is a Seller's Market. $250,000 - $350,000 it is a Seller's Market. $350 - $600K, it is Neutral and above $600K, it is still somewhat of a Buyer's Market. But the trends across all price ranges is toward a Sellers' Market. If you are looking for a home with a Current Market Value above $600K, now is definitely a good window to Buy. CATCH MARKET ON THE WAY UP - PRICES BOTTOMED locally in First Quarter 2012: We are now well past the bottom of the market in Vero Beach, Vero Beach Island, Sebastian and all of Indian River County and North Hutchinson Island. The inventory has been dramatically reduced and the prices are gradually increasing. Builders are also back into the market and purchasing improved lots in subdivisions that were approved prior to the downturn beginning in early 2006. There are fewer Spec Homes available and it is taking about 8-12 months for builders to complete a home after contract. 

Historically when the inventory reaches a 6 month absorption rate, it is considered a Balanced Market - (Not a Buyers Market and not a Seller's Market). We are currently in a Balanced Market and it is a great time to buy - Prices are still lower than the last Peak of the Market in 2006, but that gap is narrowing, and Interest Rates are still very low based on historic interest rates. If we continue to have a inventory shortage, the prices will continue to rise further.

If you are a Seller, make sure your house is priced competitively for the current market and it will sell quickly and you can buy a nicer, larger, better located home and ride the appreciation wave in a higher value home.

Buyers can still find good properties in the higher price ranges for 5%-6% % less than the peak market prices of 2006. However, in the lower price ranges, the prices are very close to the peak prices seen in 2006. The best homes are going first. 

If you are a Buyer, don't delay any further if you want a home with the best location, price and condition. 

It is time to get off the fence. NOW is definitely the time to Buy. Prices dropped approximately 45-50% in some price ranges since the peak of the market in the first quarter of 2006 and have now climbed back up, but prices are still 5%-6% below the 2006 peak in the higher price ranges and the mortgage rates are still historically low, but will not be forever. I expect that the mortgage rates will gradually increase as the housing recovery continues.

This is an incredible time to Buy and we may never see this opportunity again in our lifetime. It is still a Perfect Storm of low interest rates and relatively low prices in our area. 

After the housing market crashed, you could purchase a home for less than the actual replacement cost. That is why the Builders pulled back. However, the Builders are now back into the market and are purchasing or have already purchased subdivisions or lots where the infrastructure is already in place and ready to build.

Cautious Buyers who were holding off and trying to time the absolute bottom of the market have missed it, but this is still an incredible time to buy with historically low interest rates and still low prices. The downward price line has leveled off and is reversing with approximately a 5%-10% average increase in the last year. The excess inventory has been absorbed and the supply and demand balance has returned to normal. After the initial rebound effect of increased prices at 10-12% over the last few years, I expect the prices will continue to show moderate appreciation for the next several years at an annual appreciation of 3-5%. 

There is still an incredible opportunity for first time home buyers to get a bargain and also a great opportunity for move-up buyers and second home buyers. The move-up Buyer may have to take less for his or her existing home if they purchased during the peak, but will more than make that up with the purchase of the larger, newer and/or better located home at a lower price. 

The second home buyer also has many choices and may be able to buy in a community that was out of reach a few years ago. The nicest homes with the best locations in every price range will go first, so I suggest that now is right time to buy. DO NOT MISS THIS OPPORTUNITY.

Interest rates have been relatively stable and still close to historic lows. I recommend that Buyers lock in a fixed rate mortgage at this time if the Buyer plans to live in the home for more than 5 years. I do not recommend an adjustable rate at this time because there is a very good chance we will be seeing more inflation and interest rate increases in the next few years which will cause the adjustable rates to jump up and increase the payments. 

Please contact me at 772-538-9981 for more details.

The new home builders are now back and purchasing subdivisions that have already been approved and have the infrastructure in place. However, they are more cautious now and are only building homes for buyers who have put down a deposit and signed a contract. They are building fewer "Spec Homes", so the typical waiting time now is 7-9 months. Vero Beach has become the new frontier for several of the national builders. Because of the overcrowding of the counties to the south of Vero Beach, the abundance of land in Indian River County, and the recent real estate boom, several large national builders have already purchased and developed land here.

The builders incentives and discounted prices for inventory homes that are either completed or very close to completion have dried up although you may still be able to get discount on inventory homes that are already built and ready to occupy. 

There is now a Temporary Window of Opportunity that is Quickly Closing to purchase a very nice home in Vero Beach at a very reasonable price. I anticipate continued price appreciation at a moderate level as we enter this new appreciation cycle which began in early 2012,

We are now appear to be at an absorption rate with approximately a 5 month inventory for re-sale homes. If the current inventory stays below the 6 month absorption rate, I expect that the prices will appreciate at a pace that exceeds the rest of the Florida and the US because of the demographics unique to the area, including the in-migration of retiring Baby Boomers from up North and the 2nd home snowbirds and the escapees from the South Florida overcrowding and gridlock. 

NOW is the time for Buyers to still purchase below peak prices. By following the herd and trying to time the absolute bottom of the market, unfortunately many Buyers missed the bottom. However, with the current low interest rates and the still low, but rising prices, there is still an incredible "Once in a Lifetime Opportunity" to purchase a home today. Do not delay. 

Call me for further details and to help you find your place in the sun in our beautiful Vero Beach and Sebastian communities including Island and Mainland.

Call or text Ken Bradley today at 772-538-9981 or email [email protected]

ZIP Code: 32963, 32958, 32948, 32967, 32966, 32968, 32962

Location Characteristics: Vero Beach, FL (Indian River County) is ideally located on the East Coast midway up the Florida Peninsula and is ranked as one of the most desirable small cities in the U.S. and has been on the list of cities in the book "America's 100 Best Places to Retire every year since the first edition in 1995. It is approximately a one and one-half hour drive to Vero Beach from either Orlando or West Palm Beach International .

Vero Beach and Indian River County have approximately 26 miles of unspoiled beaches and numerous parks including Sebastian Inlet State Park. There are gorgeous Ocean and Indian River Lagoon Intracoastal waterway communities. The Walt Disney Beach Resort is also located in Vero Beach on the ocean side. The Indian River Lagoon, located between the barrier island and the mainland, is one of the most diverse estuaries in the U.S. and abounds with fish, dolphins, manatee, beautiful birds and other wildlife creating an opportunity to enjoy nature and participate in boating, fishing, canoeing and kayaking activities. Additionally, just to the west of Vero Beach, there is a large fresh water "Blue Cypress Lake" where you can catch trophy sized bass and view wildlife such osprey, eagle and alligators.

For the base ball fans, we have a local Vero Beach stadium for Spring Training. For Golfers, Vero Beach has some of the finest golf courses in Florida. Vero Beach also has a modern shopping center, a quaint downtown historical area, wonderful restaurants, specialty shops and cultural activities including three acting theaters, a Museum of Art and an annual "Under the Oaks" Outdoor Art Festival.

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About Ken Bradley:
Ken has been a Florida Realtor since 1969 and has a wealth of knowledge and experience to help Buyers and Sellers with their real estate needs.

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Ken Bradley,REALTOR, e-Pro, Luxury Home Specialist
E-mail: [email protected]
Website: http://KenBradleyRealtor.com
Cell: 772-538-9981
Florida HomeTown Realty Inc.
Call Ken Direct 772-538-9981
Vero Beach Island Vero Beach Mainland North Hutchinson Island Sebastian.

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