Our stunning listing, Meggie Hill, is on the cover of the 2019 Coldwell Banker St. Croix Realty Magazine. Even if you’re not in the market for real estate, you’ll enjoy flipping through the pages of the 154-page publication showcasing Coldwell Banker listed homes and property for sale on St. Croix.
With hurricane season upon us, this Forbes article, Does Hurricane Damage Negatively Impact Your Real Estate Value?, is quite timely. The article references last year’s intense season and offers the prediction that 2018 is in for 14 named storms, six hurricanes, and two major hurricanes. Of course, the territory that those predictions covers is vast and it’s unknown where any potential storms may make landfall. But, how does a hurricane affect real estate property values in areas hit by hurricanes?
Reports show that hurricane damages actually cause housing market prices to go up. Therefore, as a real estate investor, you should be inclined to invest in properties that surround the Atlantic Ocean due to this positive impact from these natural disasters.”
According to the article, The Federal Reserve Bank of Dallas reports that a “typical hurricane strike raises house prices for a number of years, with a maximum effect of between 3 to 4% three years after occurrences.”
The St. Croix real estate market was right on target with Forbes’ assessment that real estate sales take a short-term plunge after a hurricane. “…reports show that home sales happen less frequent and at a lower cost immediately after a storm.” Naturally, homeowners are doing the necessary post-storm tasks, like assessing damage, making repairs, and cleaning up. Once recovery is in full swing, we have seen an increase in median prices and decrease in the median time on the market. This year, we saw an uptick in real estate about 4-6 months after hurricanes Irma and Maria.
The article also mentions rentals, which have been in high demand due to recovery efforts. Post-storm has proven to be a prime time to own a rental property on St. Croix.
Cruzan Rum may call St. Croix “The Don’t Hurry” island, but time sure is flying. It’s hard to believe we’re almost halfway through 2017! So far, the year has been full of milestones.
The new ferry between St. Croix and St. Thomas started service in early April. The ferry makes two round-trips, seven days a week, and a one-way trip costs $50. Though it has had a few challenges, reviews have been mostly positive.
Speaking of hurrying, more than 300 athletes were moving as fast as they could toward the finish line of the Ironman 70.3 St. Croix triathlon. May 7 was the final running of the race that started as the America’s Paradise Triathlon in 1988 and became the Ironman 70.3 St. Croix in 2001. The Ironman franchise has grown from 10 races to more than 200 worldwide, which has led to declining participation here on St. Croix. We’re sad to see it come to an end, but have heard several supporters talk about ways to keep the triathlon going.
The USVI Department of Tourism has upped the ante with a Centennial Plus Package to incentivize tourism to St. Croix, St. Thomas and St. John. In partnership with travel booking services, book before June 1 to receive $400 in VI spending credits plus get a fourth night free!
As you may see periodically on my Facebook page, restaurants on St. Croix have been getting quite a bit of attention lately — and now you have two opportunities to own prominent St. Croix commercial properties that are currently restaurants. An island favorite, the Cultured Pelican is located at Coakley Bay condos, overlooking Buck Island. Gertrude’s is in a high-traffic location with expansive space for restaurant seating or a number of different commercial uses.
Have you ever wondered what the “Beachfront Bargain Hunt” couples are up to post-television stardom? I stopped in on Kyle and Ania earlier this month to say “hello” and see what they’ve been up to. They bought their house last summer and have been busy with some major renovations to turn their investment into their dream home.
Are you ready to buy or sell your island home? Home sales are up on St. Croix. The Market Watch shows that 25% more homes were sold during April 2017 compared to April of last year. Give Kristi and I a call!
The Fedeles Team
The following is an article from the Coldwell Banker St. Croix Realty April 2017 Newsletter:
- A 1031 Exchange pertains to investment or business properties only.
- “Like-Kind” means you swap a property for another investment or business property. You may exchange a rental house for a commercial space.
- The purchase price and the loan amount on the new property must equal or surpass that of the replaced property.
- You must identify a like- kind property or properties within 45 days of your original closing.
- You must purchase the new property within 180 days of your closing.
- The title holder must match on both the old and new properties.
- The IRS permits partial 1031 Exchanges when the new property is of lesser value; you pay capital gains taxes on the difference.
A recent article, Caribbean Luxury Real Estate Market Sees Hopeful Signs, references the Caribbean Insight 2016 report when stating that “major markets in the Caribbean are looking attractive again for investors.” While the report assesses only a handful of the Caribbean’s second-home destinations, we’re feeling positive about St. Croix’s market conditions as well.
We have definitely seen an uptick in residential and condo sales, as the most recent stats show.
As an overview, the residential market has been most active in the $400,000-$800,000 with well-priced inventory moving in a matter of weeks. Further, condos priced right are also seeing offers quickly after going on the market. We listed F13 Coakley Bay for $329,000 and it was under contract within 17 days. Similarly, Plot 7 Boetzburg was listed for $779,000, received an acceptable offer in 50 days, and closed in a total of 70 days for $725,000 cash.
We have seen an uptick in pricing as a result of this activity as well. All indicators are that we will have an active real estate market during our peak winter season. Call (340-778-7000) or email Team Fedeles for a market evaluation and to discuss your specific goals!
Coldwell Banker St. Croix Realty recently published our 11th annual magazine showcasing homes, building sites and commercial properties available through me and my talented colleagues. Whether you’re in the market for real estate on St. Croix or merely daydreaming about life in paradise, pick one up while you’re out and about on the island or browse the Virtual Magazine. When you’re ready to turn your dreams into reality, we’re here for you!