The St. Croix, US Virgin Island’s luxury market has softened since last year when comparing the sales volume. However, our market as a whole including our luxury and high-end commercial segments, are staying nearly similar in terms of property values. In the first quarter of 2022, there were a total of 12 closings, all below $2,000,000 with the exception of a unique property, The Castle, that sold over $9,000,000. In small markets, like St. Croix, these one-off properties can completely skew the market data. Compare this to the first quarter of 2023 where there were three sales above $1,000.000 with one of those sale’s above $3,000,000. Also, three other properties listed above $1,000,000 went under contract. The average sales price for homes that sold above $1,000,000 this first quarter was $2,401,667 which is 13% higher than last year. This time last year was one of our highest years on record when calculating the sales volume. Also keep in mind there was the $9,000,000 sale that skewed the 2022 market data. This tells us that our luxury market is still very robust! We did feel our buyer activity slow down a lot in the last quarter of 2022 through the first month of 2023, and our sales volume and numbers of sales do reflect that.
However, we are now seeing a lot more interest from buyers in both our luxury and high-end commercial segments of the market. Based on buyer feedback, showings, inquiries and market activity that we are personally experiencing, we anticipate the next quarter to have higher numbers. Despite many areas in the states experiencing a very soft market, St. Croix is still in a phase of growth. We are still seeing developers actively purchasing commercial properties, specifically resorts and boutique inns, and completing major renovations, which is driving our tourism and economy. Also, we are seeing an influx of business owners taking advantage of our EDC programs (Economic Development Commission), which trickles down to supporting the luxury real estate market on St. Croix.
Another important note to make is that you can do 1031 exchanges in St. Croix, US Virgin Islands. As more and more buyers learn this, we are seeing them search on St. Croix. It is an exciting and very interesting time to be selling real estate on St. Croix and I can’t wait to report back to you next quarter! Let me know if you want to get on that mailing list.
About Amy Land-de Wilde