Real Estate Prices/Questions

Sara:

The prices are driven by location. Location means both the island and what the immeadiate neighborhood is like. You will have to look around and see if a condo in the $25K price range on STT or STX is in a location that you are comfortable living in. (I don't think you will find anything in this price range on St John).

Many of the lower priced condos date back to to the 70's and some of the units need to be refurbished. (You get what you pay for.)

The economy hasn't been great in the VI for the past few years which as depressed the market. (Look at this as a buying opportunity.) Also fewer tourist mean owners can't rent units that they aren't living in.

Several hurricanes in the past decade have depressed the real estate market. People don't like hearing about 200 mph winds.

Finally the cost of ownership is more that just the purchase price. Insurance is very expensive. Hey what do you expect when you live on an isaland that has been pounded by hurricanes and also in in an earth quake zone.

You will need to come down and look around. For less than $100K you can find some good two bedroom units in well managed complexes in a neighborhoods you find attractive. For $75K you can find a one bedroom.

Enjoy your trip.

Jim

Greetings Sara,

I can only comment on the St Croix condo market, hope it helps....

"Condo's on St Croix have maintained a steady upward trend over the past 5 years. Average prices are now in the $120,000.00 range with an average of 10 sold each month.

(12 month average, 7/02-6/03)

Condo Statistics for 2002-2003:
Average price: $121,124.00
Condos sold: 118
Low Price: $17, 500.
High Price: $$676,000
MLS Sales price to list price ratio: 94%
Average days on market: 408

Residential Home market:
Average price: $314,177.00
Homes sold: 151
Low price: $30,000
High Price: $$2,550,000.00
MLS Sales price to list price ratio: 88%
Average days on market: 357

This information is based upon the St Croix Board of Realtors MLS records and has been verified.

Good luck with you move, there is lots of opportunity still in the islands.

Andrew

Andrew,

Can you explain the "MLS Sales price to list price ratio" statistic to me? The way I see it this means that the actual selling price is the stated percentage of the listed price (selling $ / listed $), but my wife says it is the percentage of listings that sell for the listed price.

Thanks,

$25,000 sounds like a time share...oops.."fractional ownership"!

Hi Kenneth,

It is the "average of all sales recorded, verses the average of all actual listed prices." This is relevant to investors that are trying to determine if it is a buyers market or sellers market. In the above email, the average selling price is about 88% of the listed price. An investor would want to know why there is a 12% yield on the table, and the controlling factors. I personaly see it as a buyers market, but discovery might make me look at new housing starts, (raw material cost going up?), competition, (notice that condos are getting 94% of asking price, why are they holding a better market appeal?).
The reasons arn't always clear, is the average age of the condos newer and more hurricane proof? Are the homes a lot older and need repair? You have to dig in and try to find the strongest reason for the trend, but thats the fun part!

Hope that helps.

Andrew

Thanks for the explanation on the MLS ration Andrew. I will start looking at that ratio closer in the future.

Kenneth