US Virgin Islands Real Estate Foreclosure Forcast

By
Real Estate Broker/Owner with Van Blake-Coleman Realty, St. Thomas/www.talk-to-Tanya.com 1-16940-1B

What about Foreclosures in the Virgin Islands?  They abound on the continent or mainland. Experts on CNN predict, the real estate market will continue to decline until the inventory of REO's is absorbed. The debacle of the market was instigated by out of control lending institutions, sub-prime lending with homes being sold to people who could barely afford them at greatly inflated prices. A mis-step in payments, a reduction in income or the balloon payment kicks in and you're in trouble. It is a slippery slope. The economy stalled, jobs were lost, we all know the story. The majority of Homes in the US Virgin Islands, for the most part, have escaped this fate.

Fortunately, for most Virgin Island Real Estate owner, the banking system has a separate commission and licensing system, banks and lending institutions have to be specifically licensed to do business in the territory.  The requirements for qualifying for loans has always been conservative with 20% down payments for primary homes and 30 to 40% down for secondary or vacation homes as a rule of thumb, with the exception of  FHA and Rural Development Programs.

Yes, the economy has impacted values on the Island. The largest drop in prices has been in high end homes ($1,000,000.00 or more). Inventory of condos and homes below that mark have increased and their prices have soften some. But there are few foreclosures or fire sales. Occasionally, there is a home or condo that is impacted by someone who's holdings include distressed property on the mainland that causes an overall bankruptcy. We have also been impacted by the fact that there are so many deals in  other areas and people are exploiting those opportunities resulting in fewer buyers in our market.

I get a fair number of inquiries from people from the mainland looking for distressed properties in paradise. " I am looking for a 4000 sq. ft., 3 bedroom house, on the beach between $60,000 and $100,000". So am I, but you won't find one in St.Thomas or St. John.

Yes, it is a buyers market but year to date figures for St. Thomas show the average sale price of a home has been $563,153 the average condo sales price has been $222,180 and the average price for land has been $190,194. For further information Talk to Tanya at 340 344 2959

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Topic:
Home Buying
Location:
US Virgin Islands St Thomas Charlotte Amalie
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Tags:
us virgin islands real estate
real estate in st thomas
foreclosures in the virgin islands

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Rainer
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Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Dec 11, 2011 11:36 AM #1
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Rainmaker
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Tanya Van Blake-Coleman

Improving the Quality of Your Life
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