Question: “What holiday event on St. Croix has special meaning to you?
Christie’s Answer: Each year we attend as many local events as possible. They are so much fun, and a great way to bump into people we have not seen for a while. This year we met some friends, set up our chairs near the fort, and watched the Lighted Boat Parade. It had been a few years since we attended, and it was so much fun! We bought some street food, sat in our chairs, and enjoyed the motor and sail boats as they paraded past all decorated with lights! Many went all out in their decorations, mostly with a holiday theme. There was a flock of little sail boats, a Barbie boat, a jet ski car with a Grinch driving it, and many ablaze with lights! After they had circled the harbor a couple of times, we were entertained with a fabulous fireworks display! This is truly a family event. Children were running around in the grassy area by the fort, Santa was strolling about in his new USVI madras coat, and all of the lights in the streets downtown were lit. Love it!
View our video about St. Croix events during the holidays include scenes from the Lighted Boat Parade!
Question: “The Crucian Holiday schedule has so many activities! What’s the best way to find them?
Chris’ Answer: Yes, there’s so much going on this time of year that it’s difficult to find all of the activities just to decide which ones you would like to attend! Sometimes I’m afraid I will miss something, so we check two calendars to try to discover them. There’s a calendar of events in the magazine, St. Croix This Week. Those magazines are found in racks all over the island, or can be seen on-line. Visit St. Croix has a calendar of events to check out. Another resource for everything happening here is Go To St. Croix. Between these resources, you will find so much to do this time of year!
Links to websites that we use to see event calendars!
Question: “What are the top 5 hidden costs of home buying?”
Chris’ Answer:
Closing costs, prepaid fees, and other fees. Getting a loan costs money. Plan on paying for your loan to be processed along with an appraisal fee. Closing costs and prepaid fees generally range between 3% – 5% of the purchase price.
Inspections. We feel an inspection by a licensed home inspector is key to any home or condo purchase. The owner will disclose anything of which they are aware, but an inspector will give you a full detailed report. For a home or land, you will want a survey done. Often an appraisal is needed.
Association fees. Condos have HOA fees. Some homes do, too. These fees will be pro-rated for the year at closing.
Maintenance, repairs, and decorating. Your monthly budget responsibilities after purchase could include landscaping, pool maintenance, pest control, garbage pickup, cable TV, and internet. Also, you will want to make your new home YOURS. So, budget for decor, paint, landscaping, furniture, or anything else you may want to change.
Utility bills. Don’t let budgeting for utilities get lost in your excitement. Think about the energy you will be using (water, electricity, AC, pool, washer/dryer, etc.), and add that to your monthly budget.
Question: “What is holding buyers back from buying a property?
Christie’s Answer: Inventory and affordability are the two top issues for Buyers, according to ABR’s (Accredited Buyers’ Representative) monthly magazine. The third issue is that Buyers seem to have unrealistic expectations.
On St. Croix, inventory has been low for several years, and this continues to be true. Since every property here is truly unique, it’s important to be ready to make an offer when a property you love becomes available. It most likely will be sold when you are ready to relocate. Buy it now! Until you are ready to live there yourself, you can rent it as either long-term, or a vacation rental. Knowing what you would like in a property and possible location on the island is key to a successful purchase.
Buying property on St. Croix differs from buying property in most states. To assist our Buyers to have realistic expectations, we take time to discuss the process, and answer all questions.
Despite all of the preparations, sometimes there are unforeseen challenges which can delay closing. For example, on one large parcel of land we sold, an archeological site was found of a Pre-Columbian ball court. Historical research was needed, and legal documents prepared. Ultimately, that portion of the land could not be disturbed by the new owners. They were delighted to have such a site on their land!
Question: “Will you put these recent rate increases into historical perspective for us?
Looking back, starting in the 1980’s by decade, on a Freddie Mac 30. Year fixed mortgage for a primary residence, the rates from the St. Louis Fed Survey looked like this:
1980’s – about 9.00% 1990’s – about 6.75% 2000’s – about 5.25% 2010’s – about 3.50% 2020’s – about 2.75% and we are currently hovering just under 8%
We’ve all gotten accustomed to the lower rates over the last 10 years. We are now entering a period where the rates are normalizing and that rate environment is more in line with historical rates. These current rates are more in line with what the “cost of money” should be based on the last four plus decades.
Question: “What effect has the increase in mortgage rates had on buyers and sellers?
Christie’s Answer:
Here are the three things which have the potential to affect on Buyers:
The cost of homeownership has increased.
It is affecting the ability of some buyers to qualify for a mortgage.
In markets such as this, some lenders tend to become a little more conservative. While we don’t expect them to change guidelines, we do expect that they may become more conservative in their pricing.
Sellers could be affected in these ways:
Second home sales, whether houses or condos, may begin to slow. This is a big part of the St. Croix market.
Investment and speculative buying may also begin to slow. These buyers are likely to search out other investment options which may b more attractive as rates increase.
As the real estate markets and players try to “right size” themselves after a few boom years, we may find that Days on Market will be affected.
