Real estate market conditions in Vero Beach, FL

During 2001 and 2002 the stock market was crashing, and September 11, 2001 brought the economy to a stand-still.  Real estate did not appreciate during these years due to national market conditions.  2003 was a wait-and-see year of uncertainty in the stock market and real estate market.

By the beginning of 2004 we had a three year demand for homes which had not been satisfied along with the lowest mortgage interest rates in decades.  Investors were seeking investment alternatives apart from the stock market.

Vero Beach real estate was perceived as "under valued" in 2004, providing the basis for speculative investing in pre-construction homes. The investors had no intention to occupy the home upon completion, with the idea of selling it "flipping it" to a new buyer.  At first this proved profitable, therefore a lot of inexperienced investors joined the speculative buying market to join in the profits.  The demand was so high, prices began to soar upward and a buying frenzy ensued. Those investors who went under contract to build in 2005 with a 2006 completion found the bubble had burst, and prices were falling. This phenomenon was not limited to Vero Beach, FL as real estate speculation was throughout the USA.

We had a very quick spike in prices, which could not sustain itself, and prices fell steadily thereafter.  The result was an oversupply of new homes, which have flooded the market. An oversupply creates an imbalance of Supply and Demand, and causes a downward push on prices. From the high market in the summer of 2005, real estate prices have fallen dramatically.  These same market forces drive the stock market.  When we purchase stock we pay the "going rate" and when we sell we pay the "going rate" at sale time. We may like or not like the result, but we have no control except when we sell. The market creates the "Market Value" and we need to decide to sell at market value or not. Wishing and hoping a buyer will pay more is not realistic.

During the height of the market lenders were promoting low interest adjustable rate mortgages, with "teaser rates" to attract borrowers. The 30 year fixed rate mortgage was attractive, but the low teaser rate gained in popularity. Those teaser rates have matured, and the buyers mortgage payments have adjusted upward to current mortgage rates putting pressure on many home owners financially. The number of mortgage defaults are increasing, with sellers pressured to sell their home to get out from under the heavy monthly payments.

Interest rates are slowly climbing, although still attractive. Home prices have returned to the level before the bubble, and today's market is perfect for buyers.  There is an oversupply of homes for sale currently, a "Buyer's Market".  Buyers can carefully select the neighborhood and home of their choice and negotiate a great real estate bargain today.  Now is the time to buy real estate in Vero Beach.

George Prescott, Realtor helps Buyers find those bargains. There are fantastic bargains now, NOW is the time to buy, and I will help you find and negotiate the purchase of those bargains.  Many buyers are seeking Short Sales, early foreclosures, and foreclosures. Contact Me for details and how I can help you identify them.

Buyers Contact me to identify the best real estate values in the market today.  NOW is the Time To Buy.

Sellers find out the realistic Market Value of your home now, free of charge, no obligation.

Those Sellers who are in the market waiting for a buyer to pay "extra" for their home are likely to wait a LONG time. A Seller with realistic expectations about today's market value, and is willing to accept today's market value will sell their home. If you are serious about

selling your home or are under financial pressure to sell, contact me to help you get a quick sale for the highest amount possible. All conversations are in confidence.  Call me at (772) 299-1302 for a confidential conversation.