Written by Ben Bryk with Vero Premier Properties a signature division of Coldwell Banker Global Luxury Vero Beach
Florida's statewide housing market undeniably slowed in 2025, hammered by high mortgage rates, rising insurance costs, affordability squeezes, and a broader global economic chill. Inventory crept up mostly from longer days on market rather than a flood of new listings, and price growth stayed modest or flat in many areas. Yet, as we hit February 2026, early rebound signals are flashing bright—easing mortgage rates (trending toward the low-6% range or better), sustained (if cooled) domestic migration, and a solid uptick in international buyer activity (up 50% in transactions and 46% in dollar volume to $10.4 billion per Florida Realtors' 2025 international report).
The big story? While some Florida spots grapple with lingering headwinds, Vero Beach and Hutchinson Island on the Treasure Coast are emerging as resilient standouts—defying the statewide cooldown with stable-to-strengthening luxury and coastal segments, surging buyer interest, and a lifestyle edge that's drawing relocators who want beaches without the crowds or premiums of South Florida.
Statewide Cooling in 2025 vs. Early 2026 Momentum
The Florida Realtors review highlights how elevated rates and costs dampened demand last year, extending time on the market and keeping statewide price shifts in check. International buyers—key for Florida—saw sales jump 51% (though still below pre-pandemic peaks), with Latin American/Caribbean buyers leading at 45%, Canadians dominating dollar volume ($1.9 billion, up 52%), and Colombians surging. Median international purchase price dipped to $442K (down from $469K), reflecting more entry-level activity.
But post-survey, falling rates have sparked renewed sales energy. Domestic migration remains above pre-pandemic levels, and lower borrowing costs could supercharge it. Globally, slower GDP growth (around 2.9%) and uncertainties linger, but Florida's appeal—weather, no state income tax, beaches—keeps pulling people in.
Vero Beach: Stability, Surging Demand, and Barrier Island Strength
In Vero Beach (Indian River County), the 2025 cooldown manifested in some mainland softening—Zillow shows average values around $355K (down 6% YoY in recent data), with medians varying $315K–$496K depending on segment and month. Yet barrier island (32963) prices stayed remarkably stable through 2025—medians/averages flat year-over-year, with luxury single-family holding firm around $1.3M–$1.5M and condos seeing jumps (e.g., medians up to $685K in late reports).
Fast-forward to February 2026: The market's roaring into peak season. Inventory is rising seasonally but year-over-year listings are down in key areas, while demand surges—homes going under contract up over 150% in some snapshots, closings outpacing last year, and well-priced properties moving fast (often with multiple offers). Tight supply in premium spots fuels competition, especially among Northeast/Midwest snowbirds and South Florida escapees seeking Vero's laid-back charm, pristine beaches, Lagoon access, and cultural perks. Experts forecast modest 1-2% appreciation, with luxury defying national slowdowns—early momentum suggests 2026 could see prices edge up as rates ease and buyers prioritize lifestyle over pure cost.
Hutchinson Island: Value-Packed Coastal Rebound
Just south in St. Lucie/Martin Counties, Hutchinson Island tells a similar tale of resilience amid statewide cooling. 2025 saw median prices dip (e.g., $420K–$433K in segments, down 13-36% YoY in some reports), with longer days on market (175–232 days) reflecting buyer caution. Inventory built, giving negotiators room.
But 2026 is flipping the script: Oceanfront condos and single-family homes in the $400K–$1M+ range offer exceptional value compared to busier South Florida markets. Recent luxury trends show tight barrier island supply sparking competition from cash buyers, with modest upward pressure expected (1-3% in premium segments). As rates drop and migration flows continue, Hutchinson Island's beaches, golf communities, and relative affordability position it for a strong rebound—perfect for retirees, second-home seekers, or investors eyeing waterfront without Miami/Palm Beach prices.
What This Means for Vero Beach & Hutchinson Island Buyers/Sellers in 2026
The statewide "cooling" of 2025 set the stage for a healthier, more balanced 2026—more inventory overall, improving affordability via lower rates, and re-energized demand from migration and internationals. Vero Beach and Hutchinson Island buck broader trends: luxury/coastal segments stable or strengthening, inventory tight in desirables, and buyer frenzy building as the "secret" spreads about our uncrowded paradise.
- Buyers: Act now—easing rates expand options, but waiting risks missing prime listings in tight premium areas. Negotiating power exists in mid-range/mainland, but hot properties reward quick, sharp offers.
- Sellers: Precise pricing wins—well-marketed homes fly, especially barrier island luxury. Inventory growth gives buyers choices, so staging, strategy, and realistic expectations drive fast sales.
Whether you're eyeing a barrier island estate in Vero, an oceanfront condo on Hutchinson, a family home on the mainland, or investing in our rising Treasure Coast gem, 2026 looks promising. The rebound isn't just emerging—it's here, fueled by lifestyle demand that national headlines often miss.
Ready for personalized insights on current listings, market comps, or strategies tailored to Vero Beach/Hutchinson Island? Reach out—let's discuss how these trends align with your goals. The dream of coastal Florida living is heating up fast!
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