With so many economists and analysts trying to spell gloom and doom for the future of Vero Beach housing, Altos Research is saying otherwise.
Altos is saying that housing recovery critics are wrong about Vero Beach housing. According to Altos, it's going to soar in 2015.
"While we see signs of demand easing, we are significantly more bullish on housing than many of the recent headlines seem to suggest," said Altos CEO Michael Simonsen. "Based on our models, we're forecasting another year of home price appreciation, with a 7% home price increase for the year of 2015."
Some Experts Call for Vero Beach Housing Prices to Depreciate
Single-digit appreciation is a remarkable prediction. Many other experts anticipate depreciation in the Vero Beach housing market, so the Altos call is relatively noteworthy.
What's driving the negative stand most of the market holds? The report blames the media.
So what is the main driver for the Altos view that prices will rise 7%? Altos expects inventory to climb another 10%.
As inventory and transactions rise along with pricing, participants in the Vero Beach housing market stand to benefit broadly. In addition, the number of days on market remains low compared to before the housing bust, indicating a seller's market.
In a seller's market, sellers can list homes at a higher value, hoping a buyer takes the bait. If not, they can also bring down the price closer to market value, while appearing to offer a sales compromise to the buyer.
Altos estimates that approximately 35% of properties will take such a price cut. Altos sees this as an indicator of strong competition, despite weaker demand overall.
The Vero Beach housing market continues to require a more nuanced view of its future.
Home prices across the U.S. are poised for a fifth consecutive year of recovery. The market is still faced with low inventory and demand, buoyed by an expanding economy, which, among other factors, remains healthy. Both supply and demand conditions are moving from extreme bullish conditions to more sustainable healthy conditions.
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