St. Croix Real Estate Crisis Heads for Double Dip | US Virgin Islands Real Estate Blog

US Virgin Islands Real Estate Blog

St. Croix Real Estate Crisis Heads for Double Dip

The St. Croix US Virgin Islands real estate market is in a double-dip recession. Here is a closer look at the fallout from the 2008 financial crisis and the impact it has had on St. Croix.

Year to Date        Total Sales Volume         PCT
2007                        $121,038,983
2008                        $122,364,837                    +  1%
2009                         $61,122,040*                   –  50%
2010                         $57,865,204                      –   5%
2011                          $56,638,356                      –  2%
2012                         $30,996,952**                 –  45%

St. Croix is down to 25% of the total sales volume from peak 2008 levels. There had been speculation about how much Hovensa’s departure would play into the local economy. The average sales price on homes from 2011 to 2012 has dropped 28% from $476,241 to $341,722. That is down from a high of $503,567 in 2008.

“We are still seeing sales on St. Croix, just not at the volume we were before, however many of the buyers who have been sitting on the fence are now starting to buy,” said Kurt Walcott, broker and owner of Sea Glass Properties on St. Croix. “The bad news is that the high-end market is really hurting. Only 13 homes sold over $1 million in 2008 and there has been only one sale in 2012 over $1 million. The good news is that housing prices are now more affordable for people who are looking to retire or already live on island but have been renting through the financial crisis.”

With interest rates still hovering at all time lows, it appears that the market in St. Croix is ripe for investment. If you are looking for a great deal on St. Croix, please give Kurt Walcott a call at 340-690-5511.

Data is based on year-to-date data from the St. Croix/St. Thomas MLS (January 1, 2012 to October 15th, 2012 vs previous years).

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