Real Estate Market Pulse – Week of January 5, 2026: A Vero Beach Perspective

Happy New Year from beautiful Vero Beach! As we kick off 2026, the national housing market is showing encouraging signs of balance and renewed energy—trends that feel especially relevant here on Florida's Treasure Coast. With pending sales climbing, mortgage rates dropping to a 15-month low of 6.15%, and home price growth slowing to its gentlest pace since 2012, buyers who have been waiting on the sidelines are starting to step forward.

 

Here in Vero Beach, our coastal paradise of pristine beaches, charming downtown, and relaxed lifestyle is poised to benefit from these shifts. Let's dive into the latest national insights and how they translate to our local market.

Nationally, the National Association of Realtors reported pending home sales up 3.3% month-over-month in November (to 79.2 on the index) and 2.6% year-over-year—the strongest performance since early 2023. All regions saw gains, with the South (including Florida) leading the annual increase at 3.3%.

 

Why this matters in Vero Beach — Lower rates and improving affordability are pulling more buyers into the market, and we're seeing similar momentum locally. After a cooling period in 2025—with homes taking longer to sell (often 100+ days) and inventory building up—pending activity has shown strength in recent months, especially for single-family homes. Our barrier island and mainland neighborhoods are attracting relocators from higher-tax states, drawn by no state income tax, serene beaches, and relative value compared to South Florida hotspots.

 

These breathtaking beachfront homes highlight why demand for our luxury and waterfront properties remains resilient—often fueled by cash buyers seeking exclusivity and value.

The 30-year fixed rate ended the year at 6.15%, the lowest since early October 2024 and significantly below last year's 6.91% average.

Why this matters in Vero Beach — For buyers here, this drop boosts purchasing power and reduces monthly payments, making our coastal homes more attainable. Many locals and newcomers have been waiting for just this kind of relief after higher rates slowed activity in 2025. In our market—where luxury segments often see cash deals—lower rates could open the door wider for financed purchases, especially as forecasts suggest further easing into 2026. This sets the stage for a busier year ahead in our stable, affluent community.

The FHFA House Price Index showed just a 1.7% annual gain in October—the slowest since 2012—with monthly increases minimal.

Why this matters in Vero Beach — Affordability is improving locally too. While national trends cool rapid gains, Vero Beach saw some softening in 2025 (median prices around $370K–$430K in recent data, down modestly year-over-year in many segments), creating opportunities for buyers. Our market is normalizing rather than crashing—luxury oceanfront and gated enclaves maintain stable values, with steady appreciation expected in 2026 driven by migration and our unique coastal appeal. Higher inventory gives buyers more choices and negotiation power, while sellers who price realistically are seeing solid interest.

As 2026 begins, the housing market is stabilizing into a more balanced environment—better affordability for eight months running, four straight months of stronger pending sales, record-low rates in over a year, and the slowest price growth in over a decade. In Vero Beach, these national trends align with our local strengths: growing inventory, resilient luxury demand (especially cash-driven waterfront properties), and ongoing appeal as a serene, tax-friendly haven.

 

Whether you're a buyer ready to make a move, a seller looking to capitalize on renewed momentum, or just curious about our market, 2026 looks promising. Patience is paying off, and opportunity is aligning with readiness right here on the Treasure Coast.

 

If you're considering a move to or within Vero Beach, reach out—let's chat about how these trends could work for you!