Real Estate

The number of houses for sale on island is the highest it’s been since I’ve been keeping watch, about four years. 

The Multiple Listing Service has 126 residences on the market, priced from $12.25 million (it’s a Peter Bay house, pictured at left) to $365,000 for an "as is" concrete slab with apartment beneath in Coral Bay (pictured at right).

Since last January, the average price of a house listed for sale has increased almost 9%, from $2.05 million to $2.31 million.  The median price of a listed property is $1.7 million.  That is unchanged from last year. 

The fact is, however, that last year the most expensive listing was about $8.5 million.  This year, there are four properties at that price and higher.  That’s gotta be pulling the average higher.  Do the math, and it may account for all the rise in the average price.  Bottom line: prices appear to be steady, while a few more very expensive properties have come on the market. 

But, hey, with US real estate prices softening, "steady" on St. John is good.

The New York Times published a story about the territory’s real estate and how pricing is fairly steady.  It quoted Dawn Wheatley, a broker with John Foster Real Estate, saying “The market has leveled off, but it isn’t going down and the reason is a limited supply of inventory. Almost no new housing has been built in more than 20 years, and we’re back to our original client base of second-home buyers from the U.S. The downside is that there are very few homes available in the under-$300,000 range.”  Here’s a link to the Times story.

Developers of a condominium project overlooking Cruz Bay to asked the Coastal Zone Management for approval to add seven residential units to their project.  Enighed Condominiums LLC, aka Sirenusa, wants to add a fourth story to three of its 15 buildings.  The project’s owner, Carlo Marzano, told the Virgin Islands Daily News, "There is zero view impact on any of our neighbors’ properties – the elevation drops so dramatically."

About a hundred residents attended the CZM hearing on Tuesday night. Dozens of them testified against the developer’s requests. "Neighbors complained about extensive flooding that impacted their homes and yards, dirt blowing into their houses, noise all night long, truck drivers who drive too fast on the narrow neighborhood roads used to access the project, roads widened without permission, and their belief that St. John’s already beleaguered infrastructure will be taxed beyond its capacity," the St. John Source reported. 

Currently approved for 40 units, the venture would be "healthier financially" if seven more could be built, Marzano added.  Barry Devine, a community activist on St. John, opposes the waiver. "It sets a tone that that area of the island is going to be four-story buildings," he said, according to the Daily News. "You can’t change the law because these people have influence or money to direct in legal means."

The president of the St. John Board of Realtors said Thanksgiving has brought the strongest interest in purchasing island real estate in seven months. John McCann, of John McCann Realty,
said last weekend he toured 10 properties with two couples and found
other sales people also "at every house I showed."  McCann conceded
there has been some downward pricing pressure, caused in part by a
near-tripling of inventory.  "Sellers realize they need to be
competitive," McCann said. "In the past, people said, ‘Well, it’ll sell
eventually.’  Now they need to show how their property is different to
generate interest."

McCann echoed other real estate sales people saying that with some
pricing softness, "This is the time for people priced out of the market
previously to come back and say, ‘Wow, look at all the choices now.’"

The Realtor added that some land prices have also weakened, making
it possible for the brave soul who wants to be his/her own general
contractor to build a property in 18-24 months at a cost of $250-$300 a
square foot.

A conversation with McCann is this week’s News of St John podcast.

Subscribe by copying this link to your podcatcher: http://fbarnako.libsyn.com/rss

Or go to the iTunes Music Store, search for "st. john" and you’ll find it.

Plans for a Coral Bay marina have been announced in a news release issued from the Boca Raton, Fla. Office of T-Rex Capital.  The real estate developer said it had acquired 10 acres in Coral Bay in addition to the land it has already secured via a 99-year-lease from the Moravian Church.
T-Rex said “the development will be located on two separate lots of
land – on the waterfront itself and on a dramatic hillside.”  The
project is in its design stage, but preliminary plans include a
“state-of-the-art full-service spa, a five-star restaurant, as well as
community and marina-based retail space.”  More information about T-Rex
is available at here.  Another marina is planned in Coral Bay, on land adjacent to Island Blues.

The Marina Market site is under contract,
according to American Paradise.  The property was listed at $1.395
million.  There’s no word from the real estate agency as to whom the
buyer is or what their intention(s) is/are.

WHOOPS!  Just went and checked the link – the "under contract" copy is gone, and it appears the property is back on the market.

Looking at the Multiple Listing Service, it’s more of the same.  More inventory.  I
remember when the agents complained there wasn’t enough; that they
weren’t able to offer buyers a choice. But despite the swollen number
of offerings, so far as houses are concerned, the median price is
unchanged at about $1.6 million and the average asking price is about
$2.2 million.  Sellers are holding firm.

• Houses:          110 (unchanged from 8/13)
• Commercial:    20 (down 3 from 8/13)
• Condos:            43 (up 3 from 8/13)
• Land lots:        277 (up 18 from 8/13)

The marketing director for the developers who planned a 56-unit luxury resort at Chocolate Hole says he will confer with them to determine whether to give it another go.  It’s back to square one for First American Development/Carib after the Coastal Zone Management committee said the project’s permit, issued four years ago, is null and void, because construction did not begin within one year. 

Robert Emmet told the committee he’d kept Planning Commissioner Dean Plaskett apprised of environmental and project studies that were underway.  Plaskett “understood that work was continuing” and indicated the permit was “in full force and effect,” the St. John Source reported. 

Emmett said the company has spent $5 million on development as was ready to sign a contract worthy $53e million with a local construction company to get the project underway.  CZM member Julien Harley said, “Somebody dropped the ball. Mistakes were made on both sides.”  The Committee encouraged Emmett to re-apply for permits and said they would do their best to streamline the process.

The spike in home prices on St. John over the past few years has become a dull headache, like in hangover.  Diana Beam of Re/Max Island Paradise Realty
told the St. John Source sales are off 24 percent and the average sales
price is down 10%.  She said prices "skyrocketed" in 2005 but are now
"leveling out."  Another real estate sales person. Rosemary Sauter,
also cited the inflated prices but added business began to soften after a report of an alleged rape of a St. John woman last fall.  Sauter said that while some property values doubled and tripled before this year, now some have fallen as much as 25%.

Here’s the latest from the Multiple Listing Service.

    * Houses:  110 (up 1 from 8/13)
    * Commercial:  23 (unchanged from 8/13)
    * Condos:  41 (up 1 from 8/13)
    * Land lots:  263 (up 4 from 8/13)