After taking a break in the summer, Vero Beach home prices got back up to strength in September, according to statistics reported by DataQuick in the company's monthly Property Intelligence Report. Other metrics, however, weakened.
Vero Beach Home Prices See Rapid Growth
DataQuick reported that Vero Beach home prices "resumed at a rapid rate of growth in September and spread to all" of its 42 reporting counties on a monthly, quarterly, and yearly basis. With the exception of July and August, DataQuick says growth of Vero Beach home prices has spread consistently, just as it has around the country, in the last 12 to 18 months, with all reporting markets seeing growth "in excess of their long term average."
There has been an increase in Vero Beach home prices and overall sales as homeowners with negative equity are gradually swept toward a position of positive equity, a decrease in foreclosures as homeowners have the equity to sell and avoid default, and an increase in demand for home equity lines of credit as borrowers look to tap into increased equity from home price growth.
Other factors DataQuick says to look out for are: "Continued single-family rental demand driven by decreases in home affordability, sustained risk of Vero Beach home prices seeing corrections and stringent mortgage credit standards, and an increase in purchases by investors" driven by the two preceding factors.
The risk of a "substantial correction" runs especially high as growth rates remain elevated, especially since growth isn't supported by steady economic fundamentals.
In the past, moderate economic fundamentals have supported long term growth of Vero Beach home prices with rates of three to four percent respectively. While generally positive, current economic drivers are weaker than those experienced in most previous expansions, leading to considerable uncertainty about future economic prospects.
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