Chesney sells Virgin Islands home

Do stocks beat St. John real estate?

A Pennsylvania couple has reportedly purchased Kenny Chesney’s Estate Peter Bay home for $4.4 million, according to the Virgin Islands Daily News.

The newspaper said Chesney paid $3.3 million for the Peter Bay house in 2003. That would indicate an annual appreciation of 7.5%. That’s well below what some people have believed island real estate has been returning. But in my own experience, it’s what we’ve seen.  By comparison, the Dow Jones Industrial Average has risen at an annual rate of 8% since June, 2003.

The V.I. Multiple Listing Service currently reports 136 homes for sale, 60 condos and 294 land parcels.  That represents a 36% rise in residential listings and about a 20% gain for land and condo offerings, compared to a year ago.

Chesney’s trust has three other island properties including undeveloped land high on a hill overlooking Peter Bay.  It was reported for sale about a year ago.

2 thoughts on “Chesney sells Virgin Islands home”

  1. Don’t give up your day job.
    Comparing the amount of homes available today and last year offers false conclusions.
    You are merely adding in new supply that is currently coming online now. If for example 100 new condos are built and now are available for sale in addition to the existing units that does not equate to sluggish sales. It only means there is more supply. And, there is likely more supply because developers see increased demand and higher prices.
    If you want an accurate idea of what is selling (or not) look at sales, not supply.
    And you can’t form an accurate idea of appreciation based solely upon a single sale. You need many comps for that.
    Anyone who has dismissed the STJ market as being busted is in for a surprise. In my humble opinion this is simply just a breather and within a few months watch for sales and profits to return perhaps better than they ever were.
    There is a big opportunity (and need) for accommodations, homes, entertainment, retail, service, education, employee skills and infrastructure to be vastly improved on STJ. Once that occurs all bets are off. And happen it will.
    There is a huge amount of disposable income (and savings) that potential STJ customers have available for 2nd & 3rd home purchases.
    STJ is still a very, very attractive place despite all the doom and gloom being spread around by an obviously depressed, uninformed and vocal few. Don’t buy into that. STJ is a great place.

  2. It’s not doom and gloom to suggest that real estate in the islands, as across America, has peaked. It just is.
    I’ve been visiting St John for over thirty years. Do not expect vast changes. More concrete, no doubt.
    IMHO, STJ is still a very, very attractive place. Hot real estate appreciation, or not, is irrelevant.

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