The Vero Beach new homes market was a bit on the sluggish side overall in 2014, but some analysts look for things to turn around in the next 2 to 3 years.
Some blame the overall slow comeback on builders who are reluctant to move very far outside of their familiar markets into more peripheral areas as well as their refusing to cut prices.
Vero Beach New Homes Cost Much More
Buyers who purchase Vero Beach new homes are paying much more than those who buy existing Vero Beach homes. The price gap between the two types of homes, which historically has been in the 15 percent to 20 percent range, has ballooned to between 30 percent and 40 percent in recent years, according to data from the National Association of Realtors.
Construction of Vero Beach new homes have been at low levels the last few years. Single-family housing starts nationwide this year reached 650,000, but a more normal rate for the sector is considered to be 1 million. A shortage of new-home construction is putting higher premiums on Vero Beach new homes as well as those in other areas nationwide.
Underproduction of Vero Beach new homes is one key reason for pushing up prices, and that price premium could widen even more if housing starts don't rebound soon. On a national level, NAR projects single-family housing starts to rise to 820,000 in 2015, which is still under the historical average.
We'll keep an eye on this trend for Vero Beach new homes and keep you informed on how builder sentiment and reluctance to lower prices affects the market as we move forward through 2015.
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