Pending Home Sales Surge to Nearly 3-Year High: A Boost for Vero Beach and Hutchinson Island Buyers

Written by Ben Bryk with Vero Premier Properties a signature division of Coldwell Banker Global Luxury Vero Beach

December 29, 2025
Residential Real Estate

As 2025 draws to a close, the national housing market is showing clear signs of renewed energy. The National Association of REALTORS® (NAR) Pending Home Sales Index — a key forward-looking indicator based on signed contracts — rose 3.3% in November from October and is up 2.6% year-over-year. This marks the strongest performance in nearly three years, dating back to February 2023, after adjusting for seasonal factors.

Here in Florida's Treasure Coast, particularly in charming Vero Beach and the barrier island paradise of Hutchinson Island (often called Hutchinson Island), this national momentum feels especially welcome. After a year of cooling trends, affordability challenges, and lingering effects from events like the 2024 hurricanes and tornadoes, lower mortgage rates are drawing buyers back to these coastal gems.

These pristine beaches, turquoise waters, and relaxed vibe are what make Vero Beach and nearby Hutchinson Island so appealing to homebuyers seeking a serene coastal lifestyle.

Why the Surge Matters Locally

Nationally, the drop in mortgage rates (averaging 6.24% for a 30-year fixed in November, per Freddie Mac) has improved affordability, even as median existing-home prices hit $409,200. Lower rates, combined with wage growth outpacing home price increases and more inventory (up about 8% year-over-year despite a recent winter dip), are encouraging buyers to act.

In the South region — which includes Florida — pending sales rose 2.4% month-over-month, contributing to the overall uptick. Locally, reports from the Vero Beach area show robust buyer engagement. For instance, recent market updates for Vero Beach's Barrier Island (ZIP 32963) highlight massive year-over-year increases in pending sales for single-family homes — up as much as 93% in some comparisons — signaling a strong recovery and serious buyer interest despite higher overall inventory.

Hutchinson Island, with its oceanfront homes and quieter barrier island feel, is seeing similar patterns. While statewide Florida trends in 2025 showed some cooling earlier in the year due to elevated rates and insurance costs, easing rates are sparking an early rebound. Buyers in these areas benefit from more options and negotiating power compared to the tight markets of recent years.

Hutchinson Island offers beautiful coastal properties 

These properties highlight why the area remains a draw for those wanting direct beach access and luxury coastal living.

Local Real Estate Pros Weigh In

Florida REALTORS® Chief Economist Brad O’Connor has noted the turnaround in the state, with pending sales rising as rates dropped this fall. “The affordability issue has been holding a lot of buyers back in the last three years, and mortgage rates coming down is a way of resolving a lot of that pain,” he said. If rates dip under 6%, it could supercharge the market even further.

In Vero Beach and Hutchinson Island, agents are seeing the same: Buyers who sat on the sidelines are now stepping in, drawn by better affordability and the area's unique blend of small-town charm, pristine nature, and upscale amenities.

Looking Ahead to 2026

NAR forecasts mortgage rates averaging around 6% in 2026 — a meaningful improvement from earlier highs near 7%. This could bring millions more households into the buyer pool, including renters transitioning to ownership.

For Vero Beach and Hutchinson Island residents and prospective buyers, this national surge aligns perfectly with local recovery signals. Whether you're eyeing a single-family home on the mainland, a condo with ocean views, or a beachfront retreat on Hutchinson Island, the improving conditions create real opportunities.

If you're thinking about buying or selling in this beautiful corner of the Treasure Coast, now is an exciting time to explore. The momentum is building — and the best coastal living awaits!

Click here to view luxury homes and condos in Vero Beach and on Hutchinson Island https://floridaeastcoastluxuryhomes.com/featured-properties