I've been looking at homes on Trulia from Vero Beach south to Hollywood, FL. Why are homes so much cheaper in Vero Beach than anywhere else?

Asked by Don Edwards, Coral Springs, FL Mon Sep 19, 2011

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9
Tom Priester, Agent, Tequesta, FL
Mon Sep 19, 2011
Don,

Prices throughout Florida, including the Vero Beach area are way down from the height of the market in late 2005 to early 2006. Depending on the location, type of home, condition of property, etc. you will see prices from 30% to 75% below the market highs and with interest rates at all time lows it is the perfect storm to lock up the ideal home. If buyers who are financing can find homes they will be happy in for 10-15 years or more the timing may in fact never be better.

I spend some time in Vero Beach and you will certainly find some great deals especially west of the intracoastal but not sure they are so much cheaper than anywhere else; for example I still think you will find lower prices in Port St Lucie. As with all real estate price is in direct proportion to a number of factors but the three most important remain location, location, location. Here in Palm Beach County foreclosures are down about 48% over the past 4 months which is a most welcomed sign. We still have a few years ahead of us with more bumps in the road but when you can buy a home well below replacement cost and lock in the lowest interest rates in history it is an excellent time to make a purchasing decision.

That being said each local market is different and you have to carefully evaluate the metrics surrounding each home. In northern Palm Beach County there is a shortage of quality homes priced well and those that do hit the market tend to get snapped up very quickly and often times in a multiple offer situation. The market is doing a good job of absorbing quality foreclosures while those that are in poor condition continuing to be a drag on the market. Even though we still have a few years ahead of us when it comes to foreclosures many tend to be shortsighted and as the saying goes the best time to buy is when there is "blood in the streets".

Here are some "positive" things about the Florida real estate market that nobody wants to talk about;

Some segments of the market have dropped up to 70% and are priced so low investors are snapping them up quickly as the cash on cash returns are amazing and relatively safe when compared to other investments.

When the market finally absorbs the foreclosures; at least 2 to 3 years and new construction resumes (and it will) market prices will rise to closer to replacement value which we are currently far below.

Buyers, and there are thousands of them in Palm Beach County, who short sold properties are out there ready and willing but must wait 24 months before they are able. We are seeing them come into the market and this pent up demand will absorb a lot of the inventory over the coming few years.

The oldest baby boomers (all 76,000,000 of them) start reaching retirement age this year. Even with the economic downturn this is the wealthiest generation ever and 29% of them have targeted Florida as the spot they want to relocate or buy a winter home. That equates to about 700,000 people potentially looking at Florida real estate each year for the next 30 years!

Much of the inventory out there is junk and will eventually be sold to cash buyers for next to nothing so they can invest money and bring the property back in to livable condition.

Best of luck and if I can offer anything additional just let me know.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"


Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference:  http://www.tompriester.com
1 vote
Gayne, Home Buyer, Pompano Beach, FL
Sun Jun 22, 2014
My wife & I our looking for a small single famliy home to buy for vacations in the vero beach area under 70000
What is a good area ? Will be in the area july & August
0 votes
Grier McFarl…, Agent, Vero Beach, FL
Mon Sep 19, 2011
Don,
Please advise your purchase and lifestyle parameters and I will be able to help you compare Vero to Hollywood based on location, size and price. Am a Florida native. After 30 years in Dade and Broward counties we relocated to Vero eleven years ago.

Please view my web site at http://www.griermcfarland.com and email me at grier@griermcfarland.com if I can help you.
Best Regards,
Grier
0 votes
trulia, , Vero Beach, FL
Mon Sep 19, 2011
Hi Don,
I lived in Boca Raton for 25 years before moving to Vero 8 years ago. South Florida is a wonderful place and has alot to offer but after raising a family we wanted a quieter lifestyle and we are thrilled with Vero. It is like stepping back in time to no traffic, low crime, friendly people and a lovely place to live. It is also very affordable which you have seen in your searching results. Please feel free to contact me if you have more questions and best of luck on your decision.
0 votes
Sam Robbins, Agent, Vero Beach, FL
Mon Sep 19, 2011
Hi Don

The answer if partially due to a great market for buyers right now and Vero Beach did not escalate so dramatically as the other cities of South Florida and therefore did not have the same timeframes to hit all time lows. This town has some of the greatest values in Florida and is unique with it's old Florida charm.

Take care

Sam Robbins
0 votes
Michelle Kan…, , Vero Beach, FL
Mon Sep 19, 2011
Don, I'm a Florida native - born and raised in Miami Beach (& Vero Beach) Florida. I have great knowledge of the areas and would love to help you. Much is true of what others have answered previously. Please speak with me and allow me to enlighten you on why I chose to live here fulltime now.
I am at your disposal. Call me, Michelle, Florida native Realtor @ 772-538-4017
0 votes
Chris Clark, , Vero Beach, FL
Mon Sep 19, 2011
These locations are 150 miles apart. I've lived in both Vero and Hollywood and I prefer Vero but that's just me. There are 10 times more people in Hollywood than in Vero. The climate is more southern in Hollywood than in Vero (though that's not necessarily good or bad). Taxes are higher in Broward than Indian River and so is property insurance. So is water and electric for that matter. If your looking to relax, Vero might be more appealing. If you need more velocity (action), Hollywood might suite you better.
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Mon Sep 19, 2011
Hi Don,
Real Estate conditions and factors are local. Take a look at St. Lucie. Port St. Lucie was one of the fastest growning communities, right along with Las Vegas in numbers at the height of the market.

We fell first and fast and now we are in recovery sooner than other areas.

You can get some Great Values in our area.

Debbie Albert, PA
0 votes
Genevieve Ra…, Agent, Punta Gorda, FL
Mon Sep 19, 2011
Hi Don,
Real Estate is Local. Every area is different and every area has its own pluses and minuses. It all depends on LOCATION!. Price is relative. type of home, location, construction and so many other things are factors in pricing.
Have you picked an area you would like to live in? Have you driven through and looked at different sub divisions? Once you decide on area, you'll figure out why the prices are what they are.

Good Luck!

Genevieve Ramachandran
0 votes
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