St. Thomas Real Estate Status- Straight From the Experts

I get asked all the time how the market is holding up on St. Thomas, Virgin Islands. Well, the island has seen better days, but all is not as bad as people tend to believe.

Sales seem to have picked up considerably in the last six months. What is interesting is that sales have been spread over a large spectrum, from small studio condominiums to luxury homes to bare land. When I refer to sales picking up, I mean that more sales are happening compared to the previous year. But that doesn't mean that prices are drastically increasing, as that does not seem to be the case. But I feel very comfortable that a bottom has formed and is steadily in place. There are actually indicators telling me that they are just starting to go back up.

I see several reasons that things are moving progressively for the better. First, mortgage rates have hit their all time low. This is a huge advantage for the buyer, and is leading to a new influx of buyers that previously would have held off.

Second, most buyers believe (as I do) that we have hit a bottom. Of course everyone wants to buy at the lowest prices possible, and this appears to be the time.

This is also bringing about cash deals, or buyers that are simply looking for a "great deal." This doesn't necessarily mean a huge discount off asking price. Actually, the sales price to asking price discount is only about 10% these days. But that number can be rather deceiving, as many desperate to sell owners have drastically reduced their asking prices in order to attract the buyer they need. So much of the discounting is happening in list price, and the buyers are sitting back and waiting to find these nice deals.

The most important reason, though, is that these properties sit in the Virgin Islands. There are few treasures in the world like these islands, and you can't keep a place like this down for too long. Though the world economy has changed, the islands are still just as beautiful as ever.

We would love it if you give us a call to discuss the current Virgin Island's housing market. We are happy to share our knowledge and opinions with you.