Shrinking number of villas for sale

The number of St. John villas for sale on the Multiple Listing Service has dropped 20% since late July.  The MLS now offers 117 residences, priced between $24 million and $275,000.

Do fewer listings mean that the big inventory of the summer is selling, thanks to the lowest mortgage rates in history?

Alas, no.  "Obviously not that many have sold," said Merry Nash, President of Islandia Real Estate. " I think some owners are letting their listings expire until the market improves or until winter  season starts. "

Cruz Bay Realty's Gretchen Labrenz echboed that, saying "Properties are contracted or they expire, therefore, the MLS fluctuates."

Islandia reports four homes were sold during the third quarter, two of them Islandia's deals.  One land lot sold; four condominiums were contracted, and four fractional properties, all at the Westin Vacation Club, were sold.

The market is not dead, but it is lethargic.  Islandia's Nash reports there are some interested buyers. "The number of people looking is about average," she explained. "But many are hesitant to make a decision until they have more confidence in the U.S. economy.  I hear that every day."

Pricing, in the aggregate, is down.  The average listing price on the MLS today is $2.0 million, if you exclude from the calaulation a $25 million Peter Bay property.  In July of this year, the comparable asking price was $2.2 million.

  • The St. John Multiple Listing Service is here
  • Islandia Real Estate's Web site is here
  • Cruz Bay Realty's Web site is here

6 thoughts on “Shrinking number of villas for sale”

  1. It’s hard to believe that the real estate market in St. John isn’t being affected by the economy — like every other real estate economy in North America and Europe. I live in Washington, DC, where real estate pundits like to try to spin us with the idea that our market will never dip…but it has. Houses are staying on the market longer, or are quietly pulled off listings, or are selling with cash going back across the table at closing to the seller to make it seem as though those asking prices are holding up.
    If real estate isn’t selling there is only one reason why — the price is too high to attract buyers. There’s one really interesting solution to that problem, and it’s called lowering your price. The boom is over.

  2. Anne, why such anger at high prices. It costs a lot to live where it is amazing. If you want low prices, go to the sahara, or detroit or wherever. In addition, to build a home costs a ton in the VI. No Realtors are scheming at the closing table to alter statistics, it is unethical at best if not illegal due to tax laws, plus closing tables are full of witnesses and the Buyers and sellers would both have to agree to this behavoir. But alas, the realtors are the enemy of all jsut trying to rack up prices on innocent investors. Please. If you went to buy property you would offer what you think it is worth. Give that a try.

  3. Good luck getting a mortgage on a second home unless you have an enormous nest egg. Now that banks are freezing forclosures it will only lead to lending freeze as well. Hello double dip recession….hope not but it is a possibility. Plus one big bank reported a loss yesterday due to the financial regulation bill. Good luck to all. I hope you survive the ride down.

  4. get Real Estate, I just noticed your comment. Seems like Anne makes a good point. And seems you are projecting a bit of anger.

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