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Ms Information
(@Ms_Information)
Advanced Member

Slow Sales do not equate to a 30% loss in property values! According to figures published by the MLS and reported by RE/Max of STX the prices have gone up a few percentage points. Slow or Flat sales are not the same as the Sub Prime Mortgages that had an effect on certain markets in the mainland as to value. Condo Units and single family homes sit on the market because the owners are testing the market with higher than market prices. One must consider a comp in value of what was sold and at what price in a year to year comparison. So, so far there has been no loss in value/price on STX.

I wish you were right about that. Unfortunately the real estate statistics are quite out of date. Betty is right that the figures reflect a few high end sales from the recent past. You are right that the sub prime meltdown was mostly stateside. but the accelerated pricing did find it's way to the USVI and consequently will go down when sellers need to move on.

We have already agreed that our prices here will move down more slowly, but they will move down. I am most familiar with STX real estate. If you check the mls you will see that condo sales are stagnant and new listings are increasing every month. Time on the market will continue to increase and sales will mostly be at significantly lower prices. Though I am sure there will be some buyers.

In other words, if you want to sell now, you need to cut your price. If you have all the time in the world you can list and wait for a year or two. However I doubt that prices will be back up for quite a while.

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Posted : January 9, 2009 4:25 am
Lizard
(@Lizard)
Trusted Member

Ms Information,
Please don't become misinformation, the figures are not out of date as reported by the St. Croix Board of Realtors MLS and reflect activity reported on that service. Slow Sales don't equate to 30% Loss in value. My cite is active in the Real Estate industry on the Island. Maybe you can share some examples of a 30% Loss this year to strengthen your opinion. Just for the record condo sales, have sold this year at 92% of asking price. The actual sales price was a profit not a loss. I guess and this is a guess if you're going to try to flip Real Estate for a Quick profit on STX this might not be the time and place to do it.

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Posted : January 9, 2009 12:23 pm
Ms Information
(@Ms_Information)
Advanced Member

Ms Information,
Please don't become misinformation, the figures are not out of date as reported by the St. Croix Board of Realtors MLS and reflect activity reported on that service. Slow Sales don't equate to 30% Loss in value. My cite is active in the Real Estate industry on the Island. Maybe you can share some examples of a 30% Loss this year to strengthen your opinion. Just for the record condo sales, have sold this year at 92% of asking price. The actual sales price was a profit not a loss. I guess and this is a guess if you're going to try to flip Real Estate for a Quick profit on STX this might not be the time and place to do it.

I thought your response was rather rude. I have never speculated in real estate here or elswhere. I was merely pointing out the sad truth about the future of real estate in the Virgin islands.

I think that we agree that sales prices have not yet been affected as much as in the states. The 30% figure is where we will be when everything shakes out. The reality is that stateside money props up our real estate prices, and that money has dried up.

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Posted : January 9, 2009 4:23 pm
dntw8up
(@dntw8up)
Trusted Member

"The reality is that stateside money props up our real estate prices, and that money has dried up."

Much of that stateside money comes from wealthy individuals who have seen a decrease in their millions but who see times like these as ideal times to invest some of their remaining millions in property. Building is indicative of a sound real estate market, and building is very active on STT.

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Posted : January 9, 2009 4:53 pm
ColdWhether
(@ColdWhether)
Advanced Member

Ms Information,
Please don't become misinformation, the figures are not out of date as reported by the St. Croix Board of Realtors MLS and reflect activity reported on that service. Slow Sales don't equate to 30% Loss in value. My cite is active in the Real Estate industry on the Island. Maybe you can share some examples of a 30% Loss this year to strengthen your opinion. Just for the record condo sales, have sold this year at 92% of asking price. The actual sales price was a profit not a loss. I guess and this is a guess if you're going to try to flip Real Estate for a Quick profit on STX this might not be the time and place to do it.

I am in the process of buying a luxury home on STX and the majority of homes I am looking at are being sold by very distressed buyers at substantial discounts. 30% seems reasonable if not underestimating the drops to me.

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Posted : January 12, 2009 6:42 pm
Lizard
(@Lizard)
Trusted Member

Ms Information,
Please don't become misinformation, the figures are not out of date as reported by the St. Croix Board of Realtors MLS and reflect activity reported on that service. Slow Sales don't equate to 30% Loss in value. My cite is active in the Real Estate industry on the Island. Maybe you can share some examples of a 30% Loss this year to strengthen your opinion. Just for the record condo sales, have sold this year at 92% of asking price. The actual sales price was a profit not a loss. I guess and this is a guess if you're going to try to flip Real Estate for a Quick profit on STX this might not be the time and place to do it.

I am in the process of buying a luxury home on STX and the majority of homes I am looking at are being sold by very distressed buyers at substantial discounts. 30% seems reasonable if not underestimating the drops to me.

Who is distressed the buyer or the seller? When you figure that out let me know. Next the 30% discount is against what, the asking price, the sellers purchase price, the comp market value. Home prices went up 58% over the past 5 years on St Croix. So if your dealing with people that have to raise money quickly and you think you are getting a bargain with a 30% discount I would suggest you go for it. Some lose and some win, I hope you're a winner "Good Luck"!

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Posted : January 12, 2009 7:36 pm
ColdWhether
(@ColdWhether)
Advanced Member

Whoops you are correct, I mis-typed and meant Distressed Sellers.

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Posted : January 12, 2009 7:56 pm
independent man
(@independent_man)
Advanced Member

From what I can tell as a former St Croix property owner and current Roatan Island property owner who watches the market closely, prices are down across the Caribbean basin - everywhere. Real estate prices are down around the world. It's a buyer market almost everywhere. Distressed sellers mean bargains, especially if the buyer has cash. This condition will likely end immediately when the recession ends. Sellers who don't have to sell shouldn't. A possible exception: premium Caribbean properties, such as sandy beachfront in gated high-end developments, are still selling at or near asking price.

So, now is definitely the time to buy, if you can find those distressed sellers. When history is told, we'll look back on this time as a lifetime opportunity for Caribbean buyers. Unfortunately, not so much for the distressed sellers.

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Posted : January 13, 2009 11:09 am
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