Existing Vero Beach home sales are expected to finish the year at their highest level since 2006 according to the National Association of Realtors’ economic forecast forum revealed at its 2015 Legislative Meetings & Trade Expo.
However, accelerating price growth and rising mortgage rates have the potential to change the expected finish.
In the most recent existing-homes sales report, sales surged to their highest annual rate in 18 months, showing a promising beginning to the spring homebuying season.
Nationwide, total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 6.1% to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February — the highest annual rate since September 2013 (also 5.19 million).
What's Driving Vero Beach Home Sales?
Sustained job growth and interest rates below 4% have been the catalyst behind the improvement in Vero Beach home sales where supply needs to increase measurably to meet the pent-up demand for buying.
Unlike the existing Vero Beach home sales market, demand for single-family new home construction remains weak, and the homebuilding industry is acting accordingly by focusing on multifamily rental housing. New home construction for first-time buyers is about half of the long-term average and the reason is simple: the decline in homeownership and marriage rates among young adults. Things are not projected to return to normal levels for the building market until at least 2017.
Get more news regarding Vero Beach home sales and the trends affecting those sales in our Vero Beach Real Estate News section below our Vero Beach Real Estate Categories in the column to your right.
Remember, we also post daily on our Facebook Page, and over at Twitter. We'd love you to check us out there too.
Vero Beach homeowners insurance is something many home buyers don't have first and foremost on their minds when thinking of buying a new home, but your Vero Beach homeowners insurance could add up to a major expense if you don't keep some things in mind.
Depending on your 'up front' rate, there are some things that could make your Vero Beach homeowners insurance rate rise in the future to become a major expense. With added risks, homeowners should take action to do all they can to prevent home insurance from spiraling out of control.
Here are some tips to avoid higher Vero Beach homeowners insurance costs in the future…
Keeping Vero Beach Homeowners Insurance Rate Increases to a Minimum
Rethink certain home additions – Although adding a new feature to the home like a swimming pool seems like a great way to boost the home's value and fun at the same time, adding on a pool may increase your Vero Beach homeowners insurance. Attractions like swimming pools will likely lead to a greater chance that someone will be involved in an accident and having a liability claim could result in higher insurance rates.
Keep credit accounts current – Lenders usually look at credit scores to calculate Vero Beach homeowners insurance rates and if homeowners do not keep their accounts in good standing, this could mean elevated rates. Make sure to pay credit obligations on time, avoid unnecessary debt and do not close older accounts to keep credit scores high.
Choose your next home's location carefully – Vero Beach homeowners insurance costs could be lower by moving to homes that are relatively new. House hunters should look for houses that have electrical, heating and plumbing systems that are less than 10 years old. There are also certain safety features near homes that could make a difference, such as, if a fire hydrant is close to the property. Prospective homeowners looking to find a home that could reduce their Vero Beach homeowners insurance costs can contact us to learn more about finding a home with potentially lower insurance costs.
Find more articles pertaining to saving money on your insurance costs under our Vero Beach Insurance Info to your right under Vero Beach Real Estate Categories.
We also post tips on Facebook and Twitter. Follow us there for many other insurance related tips as well.
With Vero Beach home prices continuing to rise, some fear that another housing bubble like we experienced in 2006 to 2008 may be on the horizon. We're seeing some of the same signs again like bidding wars, offers above asking price, closings before houses even hit the market. Signs that are once again becoming the norm in the real estate industry. But some economists say, any potential housing bubble this time around will be different than the one we all went through before.
According to recent data from the U.S. Census Bureau, larger Vero Beach homes are making a comeback, and bigger than ever. After a few years of shrinkage in the aftermath of the Great Recession, the median square footage of newly built Vero Beach homes last year tipped the scales at over 2,400 square feet. That's nearly 1,000 square feet larger than the median home built in 1992. The death of the McMansion has been greatly exaggerated.
Buyers Screaming for Larger Vero Beach Homes
Back in 2011, many observers were predicting the end of the McMansion era. But five years into the recovery that hardly even feels like one, homebuilders have returned to the old ways of building larger Vero Beach homes. The recession was supposed to usher in a return to the dense, urban and walkable. Instead, the opposite has happened.
Young first-time buyers, who are less inclined to buy big suburban houses, are largely staying away from the market altogether. Credit requirements are still much tighter than they were before the housing collapse, so much of the activity in the housing market is from wealthier families looking to trade up – and they're looking for bigger and better Vero Beach homes.
On one level, builders building Vero Beach homes may be inclined to build communities that reflect their own values. This isn't a problem if potential buyers share those values too – but what if they don't?
One potential sign of trouble might be the homeownership rate, which at the end of 2014 reached its lowest level in 25 years. That's not necessarily a bad thing. Data shows the economy added millions of new households in 2014 as more people lived in shared arrangements – including some of those young adults staying with mom and dad – struck out on their own. Most of them decided to rent. That could carry over to an uptick in the homeownership rate in the coming year as more renters decide to buy.
Sizes of Vero Beach homes are rising even as sales have slowed because builders have competed for affluent buyers who aren't likely to run into trouble qualifying for a mortgage and saving for a down payment.
Get more information as it pertains to buying Vero Beach homes in our section on Vero Beach Real Estate to your right under Vero Beach Real Estate Categories. We also post tips daily on Twitter and Facebook, sometimes pertaining directly to Vero Beach homes and the current trend of the Vero Beach housing market. Find us there as well.
With more and more houses getting older and older, how could this aging trend affect Vero Beach home buyers in the future? The Department of Housing and Urban Development's American Housing Survey (AHS) shows that the median age of homes in the United States is now around 35 to 40 years old.
The National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case Vero Beach home buyers will be responsible to update their new residence. Even homeowners who aren't selling will need to consider remodeling for structural and aesthetic reasons.
Vero Beach Home Buyers Face Higher Prices
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn't meet the demand of Vero Beach home buyers.
In December 2014, the average cost of a new home was $298,100 while the cost of an existing home was $209,500. Saving that kind of money on a home purchase allows a Vero Beach home buyer to budget for a remodeling project.
Many Vero Beach home buyers opt to save on remodeling costs by doing things themselves. According to a 2013 American Housing Survey, a homeowner can save more than half the cost of a project by doing it themselves. A professional bathroom remodel runs $8,221 versus a do-it-yourself job at around $3,000. The kitchen, one of the most costly remodeling projects to do, comes in at around $15,000 for the do-it-yourselfer and around $35,821 for a professional to do it for you.
Buying an existing home can put first-time Vero Beach home buyers in a better financial position. Instead of renting until they save up money for that brand new home, they can begin gaining equity in their house and enjoy the benefits of having their own place.
Get more tips and articles designed to help Vero Beach home buyers save money on remodeling jobs in the Vero Beach Home Improvements section below our Vero Beach Real Estate Categories in the column to your right.
Remember, we post tips for Vero Beach home buyers daily on Twitter, and also over at our Facebook Page. We'd love you to check us out there too.