A range of market forces have pushed house and condominium values significantly higher in The Moorings, with the median price for a condominium up 22 percent during the first three quarters of 2014 compared to 2013 and the median price for a single-family home up more than 25 percent.
“A lot of it is simple supply and demand,” says Mooring’s Realty Sales Company broker Marsha Sherry. “Fewer properties on the market along with stronger demand from buyers are the main reasons prices are rising. But there are other factors too.
“Brutal winters up north have helped and we are finally seeing the wave of Baby Boomers we thought we would see earlier that was delayed by the recession.”
More than 8,500 Americans turn 65 each day and the percentage of the population 65 or older is expected to rise steeply over the next 20 years, from approximately 14 to 21 percent. Many Boomers who reached retirement age in the recent years ended up working longer than they expected because of stock market losses and plummeting home values during the recession.
Now, though, with the stock market up more than 100 percent over the past six years and housing prices registering double digit gains year after year while unemployment steadily declines, large numbers of those who put off retirement are taking plunge.
Last winter made many of them look south toward sunny Florida.
In the Northeast, a prime source of Vero homebuyers (and renters), the winter of 2013-2014 was “a very long, cold and snowy one,” according to weatherworksinc.com, with records “broken in both the snowfall and temperature department.”
The Midwest wasn’t much better, and this year is following suit, with deadly deluges of snow in New York and other states.
“I think prices will continue to rise in the Moorings because of the same factors,” says Sherry, who with her four main agents handles a majority of sales in the iconic 1,160-home ocean-to-river community. “This business is cyclical and the tide has turned. I think there is more consumer confidence and more of a sense of urgency among buyers. If someone wants to own in the Moorings, they should know this the time to buy.”
Besides economic and meteorological factors, Sherry says prices are going up at the Moorings Yacht and Country Club because buyers are attracted to the lifestyle the community offers, with tennis, golf, boating, fishing, swimming, fine dining, and a wide range of cultural and community activities for adults and children. The Moorings’ proximity to St. Edward’s school and the beachside shopping and dining district is another plus, especially for families with children.
The jump in Moorings home prices strongly outpaces statewide house and condo price increases, which saw year-over-year price gains in September of 5.9 percent for single-family homes and 9.8 percent for condominiums.
The increasing value of Moorings’ homes is good news for anyone who owns property in the community and for any agent who sells homes there and stands to earn higher commissions. But the shortage of inventory that is driving price increases has a distinct downside.
With only 18 house and 22 condominiums on the market at the end of September there is not a lot to choose from, which can frustrate buyers and make it hard for agents to find homes for clients.
“Some people are shocked when they find out how little is available,” Sherry says. “Nevertheless, I think we are looking forward to a good season. We typically see inventory rise a bit this time of year and my agents have their ears to the ground, looking for listings.”
Sherry and her four agents all live in the Moorings, where they are ideally located to hear about neighbors or other club members who may be interested in selling.
“They have great networks,” Sherry says of her agents. “People do want to talk about real estate. Because it is your friend or neighbor, it is easier to just pick up the phone and call and ask about the market.
“If someone has indicated they might be interested in selling and we have buyer, we are going to quietly give that seller a call and ask if they are still interested. We had two recent condo sales that way – people who were thinking of selling who said, ‘Oh, you have a buyer?’”
“People in the community know we will honor their privacy so they feel confident talking to us. They know we are not going to be talking about their business at dinner.”
Sherry says rising prices will also play a role in pulling extra inventory into the market during the season. People who did not want to list and perhaps sell at a loss when prices were low, now see an opportunity to get back what they paid or make a profit.
“Buyers are still price sensitive and sellers know that,” Sherry says. “Nobody is going crazy or looking to make a killing. Prices are just coming back up to where they should be, and there are still some good buys available.”
3pm Tuesday
Are the sales on the sheet you gave me total sales in the community or Moorings Realty Sales Co. sales? All sales that went through multiple listings.
What are the main reasons prices have gone up? I think one thing we all agree on. Fewer properties on the market; stronger demand from buyers, even though prices have gone up; supply and demand.
This business is cyclical and the tide is turning. I do believe there is more consumer confidence.
Brutal winters have helped. Only two places I would want be and one is Vero Beach. (That’s true. It might be the things that make somebody stop and think.)
Well, I think it is. Last year was brutal. It think there is a reason our rentals are almost completely booked. If you watch the weather report, the Moorings annual snow dance has worked, once again.
The age of some people. We never really got hit with all those Baby Boomers.
(There is a big wave of baby boomers coming) We had hoped to see them before, but for a variety of reasons we didn’t (had to work longer, lost money in the stock market). Exactly. Global things affect us, too.
Why are rising prices a good thing? First of all, people need to be aware the market is changing. If you are thinking about buying now or in the future you should know time is of the essence. Slow process. Up more in some communities than in others. It gives people a little more sense of urgency.
I also think there are some people who did not put their homes on the market because prices were so low. (Rising prices good for those people). People may get a little bit better price if they sell now.
People have more confidence in the market.
Homes not on the market as long. That is a good sign for the economy.
For all of our agents, it is good because we alive here!
Still great value here in the Moorings, but it is time to make a move if you are thinking of making a move.
The best buyers and sellers are the most educated and you are going to give them some information.
Buyers are still price sensitive. Sellers know that, too. Nobody is looking to make a killing. Prices are just coming back up to where they should be.
Do you expect prices will continue to rise? At what rate? Yes, for the same reasons. Inventory is low and it is cold up north.
How do prices in the Moorings compare to other clubs and communities? Right now, I think we are the best value. I think our club and our properties. Because of the lifestyle it encompasses. We live here. That is how much we believe in it.
What does the lack of inventory mean for your business? Is it a problem? Choices for buyers are more restricted, which can lock up the market. Sellers have to figure out where they are going to go.
Some people are shocked when they find out how little is available.
I think we are looking forward to a good season. We will continue to see more inventories come on the market.
What are you and your agents doing to create more inventory? I can’t give away all our secrets. All of our agents live and play here. They have a pulse on the market. They have the ear to the ground. They have great networks. People do want to talk about real estate. Because it is your friend or neighbor, it is easier to just pick up the phone and call.
If someone has indicated they might be interested in selling and we have buyer, we are going to quietly give that seller a call and ask if they are still interested.
We had two recent condo sales from that. People who were thinking or had taken their property off the market, said, oh, you have a buyer.
They know we will honor their privacy if they just want to discuss things. We are not going to be talking about their business over dinner.
Are rising prices pulling more homes into the market? To some extent. We are seeing a little increase in inventory as we usually do this time of year.
What do current trends have to say about the future of the Moorings Yacht and Country Club? We see retired people as we always do. For many this is a second or third home. But for many we are also seeing that younger 40 to 50 year olds, executives who are buying here. Our club membership is changing too, along with that. We have younger members. We have a very nice mix. A lot of people thought of The Moorings as an older club. But it is shot in the arm.
The water and the lifestyle we are selling. Before I sold real estate, I owned a home here in the Moorings. This was the lifestyle that attracted me. A lot of people love the casualness. They love the water. The club has been rediscovered. Constantly upgrading and making changes. We grew up here and we want our children to grow up here. I want my mother to retire here.
How many agents do you have? 4 active agents.
We are the number one office in the No. 12 district. Fulltime rental manager with a director of personal services. Concierge. Works with.
We have a very personal relationship with our buyers and sellers.
What are your sales figures so far this year? (dollar amount, transaction sides or any information you want to make public)?
Relationship selling:
I think they are extremely important. They are going to be our neighbors. Playing golf together. At the club together. Relationships are extremely important. We see our renters year to year and we are thrilled to see them again. They eventually buy. We care about them. Relationships are what this business should be about.
Toggles between personal and professional. That kind of relationship can be transitioned into business.
Our agents knowhow to compartmentalize. Today it is just totally social and what we talk about goes no further. We know how to do that. We do not talk about anyone’s business. Can you tell me what so and so sold for. NO!
People have confidence in someone they see in their neighborhood.
They have confidence in this company and their agents.
The best thing we can get is referrals. And we get a lot of those.
This is our business but it is great to have all these other relationships that can go back and forth.
Relationships are what it is about.
Talks about how they keep in touch with potential buyers who have looked in the Moorings. Contacting them with new listings and sending them updates on the market. Sending things we think of interest. Just by knowing about other properties they might be interested in.
Look, there is nothing in the inventory, but let’s talk about what you are interested in.
Relationships are always more important than the commission. We will see them afterward.
They like the fact that the Moorings agents live two doors down.
This is where we have invested and grown up.
