Villa sales slump in Q-1

Last week's post suggesting home buying may be picking up looks premature wrong.

Results for the first three months of the year are in. They are dismal. According to Islandia Real Estate’s Web site, there were only two homes which went to closing in the first quarter. A house in Catherineberg and one at Rendezvous were purchased for a total of $5.26 million dollars. That's an average price of $2.63 million.

The average home price in 2007 was $1.98 million, including the record-setting $14 million Mugar property at Peter Bay.

“Though the numbers do not show it, there is much more real estate activity this year than last, with a lot of people looking,” said Merry Nash, president of Islandia. “I expect to see a lot more contracts in this quarter than last, particularly in commercial and development properties as those in the know look forward to a prosperous future for St. John.” She said the slump in sales is not resulting in bargain pricing. “Though there are a few really motivated sellers, prices in general are holding firm.”

Real estate sales activity: http://www.islandiarealestate.com/statsummary.cfm

Comments

[Scott B]

attorney,

The real estate market on St. John does have some flaws....greed is a factor in every market. I guess I'm a "carpetbagger" in your eyes. The reality is, the investments made on St. John in real estate have created plenty of jobs for all. St. John has more jobs then citizens. You can't find that anywhere else in America.
I'm building on St. John for the challenge of building a great house on a great Island...if I make a few bucks thats cool too.
What the USVI needs is an efficient gov't, honest police and
fewer double standards.

[attorney]

Does anyone know the meaning of "carpetbagger?"
"a non-resident or new resident or long time snowbird resident who seeks private gain from an area often by meddling in its business or politics or rightful historical processes by its native people."

In the the case of St. John, there is only one other power greater than a carpetbagger....greed...

[allan]

jbird, I have absolutely no knowledge of the RE market on STJ, but have a bit of a clue on watching the US market slowdown. Lot's of people are looking on the mainland, but few are buying.

My opinion is just that and we know about opinions.

Glad to hear the market is great on St John.

[jbird]

Allan:
Do you have some kind of special inside track on St John's RE market that qualifies you to say a longstanding professional's comments "border on stupid"? Do you know what deals are pending, other than what the public MLS info shows? I would bet Ms. Nash does. Please back up your statements; otherwise keep your opinion to yourself.

[Scott B]

Ten homes are under contract as I type. The VI banks and gov't need to facilitate things better. Closing on my land took 5 months...thats how deals can fall apart. It seems the 2-3 mil market will carry the market this year(averaging 1 per month). Last year was the big 14 Mil house and cottages under 500k. The year before was 1.2-1.7 Mil market was hot. Once when you think you've got it figured out it evolves.

[lydia]

I think Ms.Nash knows exactly what she is talking about and I expect sales to increase over the next few months. There is great interest in the Pastory Garden site, if it goes for marshal sale, as well as several other commercial properties available.

[Frank Barnako]

Pond Bay is well under way.

Here's a link to a photo:

http://barnako.typepad.com/news_of_st_john_usvi/2008/03/st-john-constru.html

Good or bad? Lots of folks are on either side. development has come, and will continue. The Park and the beaches and the ocean will stay.

Things change:
http://barnako.typepad.com/news_of_st_john_usvi/2008/03/development-its.html

Frank

[Bill Loweth]

What's happening at Pond Bay? Do you think they will be successful this time around and will the proposed development have a positive or negative impact on the Island?

[allan]

“Though the numbers do not show it, there is much more real estate activity this year than last, with a lot of people looking,”

Yes, nothing like 'looking' activity in the generating of income.

A really, really silly, bordering on stupid statement.