2017 US Virgin Islands Housing Market Forecast
(Editor’s Note: This post was written before Hurricane Irma struck the U.S. Virgin Islands)
At Cliffco Mortgage Bankers we see clients purchase real estate for a variety of reasons. Some buy to achieve the dream of home or business ownership. Some are looking to move into an area with strong schools. We also see clients who purchase homes to seek a new or better lifestyle. For some clients that means purchasing property on an island paradise. That’s why we often see clients looking for loans to buy real estate on the US Virgin Islands.
The US Virgin Islands are three large islands, St. Croix, St. John and St. Thomas, as well as about 50 small islets and cays, according to Brittanica. Much of the area’s economy is based on tourism and other service based sectors. The area is known for beautiful weather and sandy white beaches.
Outlook and Predictions for St. Croix
Taking a look at St. Croix, according to statistics from RE/MAX, about one third of the island’s residential housing market is in the low under $200,000 price range. About one third are in the mid range, which is from $200,000 to $400,000 while about a third of homes are more than $400,000. About 38 percent of the island’s condominiums are in the middle range, representing a 12 percent downward trend from 2010. with about 40 percent in the upper range and 12 percent in the lower range.
RE/MAX says that St. Croix is in the 9th year of recovery from the 2008 market crash. The company predicts that residential sales will reach a 15 year high in 2017. They make no formal prediction about condominium sales.
A Look at St. John and St. Thomas
Residential sales in 2016 on St. John totaled 45 as of October of that year, according to the New York Times, citing statistics provided to them by Sotheby’s Realty. The Median sales price of $810,000 was down about 20 percent from a year earlier. Homes which were in the $1 million to $2 million range were the most popular according to Sotheby’s Lee Steiner, while higher end homes with a listing between $3 million and $4 million were slower. There are very few condominiums on the island, with only nine 2016 sales at a median price of $450,00 during the same period, according to the Times.
On St. Thomas, the average listing price of any property, which includes single family dwellings, condos, commercial properties and land was $767,000 according to Seaglass Virgin Islands Real Estate. Those statistics are based on the company’s 603 listings. The Majority of those listings are land and single family housing sales. About 295 units were sold in the last year with 15 of the sales representing homes worth over $1 million. That represents a 12 percent drop offer the previous year’s high end sales of million dollar homes.
Cliffco Can Help You Make Life Changing Purchases
Owning property in the US Virgin Islands can be a life-changer. In addition to the beautiful weather, beaches, water sports, and scenery, it offers a chance to experience Caribbean culture and a relaxed way of life. If you’re considering purchasing property on the islands and would like to learn about your loan options, contact Cliffco Mortgage Bankers today.