As of June 22, 2020. YoY Percentage Change
COVID-19’s effects are clear in the market! The numbers seem to be all over the place and confounding, but upon closer inspection, there may be clear patterns and explanations.
Inventory continues to drop in the residential sector, a fairly consistent trend since Hurricane Maria in 2017. Impacting the dismal sold and volume data may be the protracted amount of time loans are taking to close given the pandemic. Despite these sharp declines, the average sales price of homes has dipped only 3%, less than expected if you take the numbers at face value.
Condos, too, see drastic declines but the average sales price has actually increased by 25%.
Land continues to move as residential inventory remains low – people now opt to build given the few choices of already constructed homes. The sharp increase of 34% in the average sales price is a bit deceiving, however. A property in downtown Christiansted which sold for $999,999 and was classified as land actually had a structure on it so one could argue it was a commercial property and not land at all. This sale skewed the average sales price sharply so if we remove this sale, land prices remain stable.
The commercial/industrial sector is a mixed bag. More inventory and number under contract compared to the same time period last year but sharp declines in number sold, volume and average sales price. Once those under contract close, it will be interesting to look back at how these closings affect the data.
Overall, St. Croix’s real estate market remains healthy despite the challenges. We are seeing new, off island buyers and local buyers see opportunity and are getting in on the action!