Granada Del Mar

Did I ask a taboo question?

i have never been inside of them but they are right on the beach, might not be the best area. a few years ago you could have bought one for about 40-50 thousand. looks like a nice pool and if you like seaglass i have found some there.

Thank you speee1dy. I was afraid that was what I would hear (might not be the best area). I sure don't wanna live in fear. Wow - $40-50K a few years ago - I am always a day late and dollar short. Ha. Ha. I kinda thought there would be something bad about being able to buy a beachfront condo for around $200K. Oh well, the hunt & comparison continues.........

Thanks again speee1dy.

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+pubweb/index.html&entity=stcroixhomes&no_html_header=true

Be sure to do a search on the MLS. I included an easy to use site, but there are many others. The current selling prices should be about 30% lower than the average asking price right now.

There are many very good buys in that condo row area. When it is described as a not too good area, that really means that there are housing projects nearby. If you have a secure unit that shouldn't be a problem. good luck with your search

Not being in a good area is relative as you can have a bad housing in the same area as a mansion. You should come down and look around before you make any decisions. Alexandra Bentley, who is on this board often, is a great resource. We bought on condo row and love it. Not had any problems. Ms. Bentley was our realtor, also.

Ms Information,

Why do you say the selling price should be 30% lower than the average listing price? Just curious. Thanks.

Since I posted the above, I did some research. I was a little concerned about Ms Info's 30% less statement. I did not look at EVERY condo that sold recently, but I hit them randomly. Here's what I found:
List price 319,000, sold 309,500- -3%
List price 239,000, sold 220- -8%
List price 142,000, sold 127,500- -10%
List price 55,000, sold 49,000- -11% (This one was advertised that seller would take less.)

Like I said, I didn't look at everything, but the only one I found at 30% under listing price was:
List price 60,000, sold 40,000 (Note this unit was advertised as needing TLC)

The above units sold from Oct. 1, 08 to today.

I looked at more from the summer (June-Aug.), and the average was -7%.

The comment was ...... "should be" 30% less, meaning the pricing here hasn't dropped like in the states.

Then there is appraised price, which is often comes in lower than the asking price. If you are getting a mortgage the lender will only give you a mortgage for the appraised price so if the seller won't lower their asking price you have to come up with the difference. I bought a condo at the end of July this year ... the appraisal came in $3000 lower than the asking price and the seller wouldn't budge. I felt like a chump but I wanted the place so I played the game and ponied up the extra cash. I've checked MLS weekly since I bought the condo and have only seen about 3 or 4 condos go under contract since then. I think the asking prices are way overinflated and reflect what people could get in 05 and 06 but looks like they'll be sitting on their properties for a few years until the market turns around. Not going to be many buyers in this economic climate.

Ms Information,

Why do you say the selling price should be 30% lower than the average listing price? Just curious. Thanks.

Since I posted the above, I did some research. I was a little concerned about Ms Info's 30% less statement. I did not look at EVERY condo that sold recently, but I hit them randomly. Here's what I found:
List price 319,000, sold 309,500- -3%
List price 239,000, sold 220- -8%
List price 142,000, sold 127,500- -10%
List price 55,000, sold 49,000- -11% (This one was advertised that seller would take less.)

Like I said, I didn't look at everything, but the only one I found at 30% under listing price was:
List price 60,000, sold 40,000 (Note this unit was advertised as needing TLC)

The above units sold from Oct. 1, 08 to today.

Hi Juanita...

The 30% figure is just a "ballpark" estimate of value. I based that on the more than 30% reduction in selling price for condos that buyers are seeing in some places in the states. As I said before the VI price seems to trail the stateside price. It goes up slower and usually goes down slower. A prudent buyer will not pay the inflated prices that are being asked at this time. The real estate crises in the states is beginning to affect prices in the Virgin islands. There is some question as to which is the best strategy. Hold on as long as you can, or take the first meaningful offer?

Unless you are in the states it is hard to understand the carnage that has destroyed the market. Unfortunatly, it will eventually migrate to the islands. It is still true that if a buyer really wants a property they will pay a higher price. I predict that prices will continue to slide over the next year or more. ugh...

 

While some of the houses on the market are inflated, I doubt we will see much more reduction in houses. Most people don't have to sale here. If nothing else you can usually rent out your house to cover your mortgage if you have to go stateside so we have more flexibility in waiting out the market. Condos gain equity slower here so the ones that are inflated will have to come down a little or the communities that flooding the market with units IF they are desperate to sell.

We have to put down more on our houses to purchase,mortgages are harder to get, so usually if someone buys a home or condo here they can really afford it, unlike many of the questionable things mortgage companies did stateside. Plus a large portion of hour homes on the market are luxury homes and those are still selling. Locals tend to pass on homes and build their own as they have money, instead of going into debt, so you rarely see a local selling their home.

While some of the houses on the market are inflated, I doubt we will see much more reduction in houses. Most people don't have to sale here. If nothing else you can usually rent out your house to cover your mortgage if you have to go stateside so we have more flexibility in waiting out the market. Condos gain equity slower here so the ones that are inflated will have to come down a little or the communities that flooding the market with units IF they are desperate to sell.

We have to put down more on our houses to purchase,mortgages are harder to get, so usually if someone buys a home or condo here they can really afford it, unlike many of the questionable things mortgage companies did stateside. Plus a large portion of hour homes on the market are luxury homes and those are still selling. Locals tend to pass on homes and build their own as they have money, instead of going into debt, so you rarely see a local selling their home.

That is a good evaluation of the USVI real estate market. Over the past 20 years, especially on STX, properties have sold slowly. As long as potential sellers recognize that and can afford to hold on, they will not be hurt as much as people in the states. What is true, is that all houses and condos have become so expensive that few locals can afford to buy. The price run up (as always) has been driven by stateside money. As we all know, right now that, that source of money is drying up. Even in the million dollar plus properties there are fewer people willing or able to buy. The market on St Croix shows a few big buys a couple of months ago, but not many small ones. The number of listings is climbing every week. That will force the price down if some of those properties are distressed and need to be sold.

My conclusion is that anyone who buys now will need years and years to realize any upward movement. The asking prices are at an unprecedented high. The economic situation worldwide continues to deteriorate.

The run up in prices from a few years back was due to the influx of mainlanders into our market. Now the mainland market crash has led to a slowdown in USVI sales... but it's more dramatic in some property types and price ranges than others. Condo sales are notably slower the past year and a half. Prices have dropped and in some instances are actually lower than they were 3-4 years ago. Some are still priced at a reasonable profit to the seller and others are priced unrealistically high in our current economy.

The bulk of the condo complexes on the island are located in Condo row and the extension westward all the way around the harbor to St. C's. In general, the further you get from low-income housing projects, the greater your chances for avoiding petty, random crime, break-ins, etc. Some of the complexes have added security gates to their parking areas in the past year to help prevent the casual crimes from occuring as readily. When you are looking at the waterfront complexes, take a good look at the structures to fill yourself in on the condition as some haven't been maintained as well as others. Watch for serious concrete spalling, etc., especially on the ocean side of the buildings.