Nov 2, 2023 | QA
Published on our October 2023 Newsletter
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.
Oct 12, 2023 | Island News
On St. Croix, breadfruit is something very familiar to us. We see beautiful breadfruit trees on island, and breadfruit used in restaurant menus, snacks, and cocktails. We love breadfruit and all of its uses. According to a recent Forbes article, “With its immense potential for food resilience and security, breadfruit or Artocarpus altilis is being celebrated as a staple crop with the opportunity to boost global climate smart sustainable development.” This article highlights examples of how breadfruit is being used in products and menus (such as in an episode of the National Geographic series, Gordon Ramsay: Uncharted). St. Croix’s Mutiny Island Vodka which is made of a combination of breadfruit and Caribbean rainwater is also featured. Read the full article here.
Nutritionally, breadfruit is an energy-rich food and a good source of complex carbohydrates, fiber, vitamins, and minerals. Here on St. Croix, USVI, it is an ingredient common in West Indian and Latin cuisine. It has potato-like consistency when cooked, and a good source for gluten-free and vegetarian recipes.
According to The National Tropical Botanical Garden, breadfruit is an important component in traditional agroforestry systems and can be grown with a wide range of plants. Trees begin to bear fruit in three to five years, producing for many decades. The trees require little attention or care, producing an abundance of food with minimal input of labor or materials, and thrive under a wide range of ecological conditions. The ethnobotanist Diane Ragone from the NTBG said in a NPR interview, “compared to other food staples, these fast-growing perennial trees require far less labor, fertilizer and pesticides than crops like rice and wheat. They’re also more productive. A single tree yields an average of 250 fruits a year and can feed a family for generations.
For some ways to use breadfruit in your meals, take a look at the Cruzan Foodie’s blog article about how she uses breadfruit!
Oct 10, 2023 | Reports
Find the monthly sales data, inventory, and days on market for the St. Croix, USVI real estate market! We have downloadable Coldwell Banker real estate reports — available below for each category: Homes & Condos, Condos, Homes, and Land!
If you are not familiar with with the implications of the data, please give us a call or email us directly with any questions. We are Accredited Buyer’s Representative (ABR) and Seller Representative Specialist (SRS) and have the experience and local knowledge to help you in every step of the process. We can help you narrow down neighborhoods based on your priorities. We can also advise you on the market trends in your desired neighborhoods.
Open reports by clicking on links below:
Homes & Condos – September 2023 Area Report
Homes – September 2023 Area Report
Condo – September 2023 Area Report
Land – September 2023 Area Report
Note: The average sales price and the average days on market could be skewed greatly by only one sale or because of the small number of sales
Sep 29, 2023 | QA
Published on our September 2023 Newsletter
Question: “Why don’t so many condo complexes qualify for financing?
Chris’s Answer:
Currently most condos on St. Croix must be purchased for cash since they don’t qualify for financing. A condo complex is warrantable if it operates as closely to a residence as possible and is not seen as a “condo hotel” and complies with Fannie Mae and Freddie Mac Mortgage guidelines. When lenders are considering loans on condos in a specific complex, they look at many factors: some HOAs, while insured, don’t meet the lenders guidelines for coverage, the number of vacation rentals in condo complexes is increasing, and a couple of condo complexes rent office space to agencies that rent condos inside the complex which can appear to lenders that the complex is a condo hotel.
After Hurricane Maria in 2017, insurance companies paid claims which were sometimes substantial. Many insurers decided to raise their premiums in subsequent years. Condo complexes handled those rate increases in different ways. Some passed them along as either increases in the monthly HOA fees or as special one time assessments. Some HOAs reduced their premiums by increasing their deductibles or by lowering the amount of their insurance coverage.
Lenders want the properties they finance to have a certain amount of insurance coverage. Some lenders have become unwilling, in the short term, to lend into some complexes until these issues can be resolved by the insurers and individual HOAs. Many of the Condo Boards on St. Croix are currently reviewing these issues, and working with the insurers to make adjustments to their coverage so that lenders are satisfied.
Do you have other real estate questions, contact us!
Sep 29, 2023 | QA
Published on our September 2023 Newsletter
Question: “Why does it seem like Home Owner’s Association (HOA) fees are high on condos?”
Christie’s Answer:
Often people compare condo fees on St. Croix to condo fees in the states. A big difference is the HOA fees here usually include windstorm insurance. This is essential to have because it means that each individual condo and the common areas are insured and that the entire complex would be covered for damage from a storm. Those HOA fees cover other things too. While they vary from complex to complex, those other items usually include: maintenance of the exterior of the buildings, professional landscaping, pool maintenance, administrative expenses, monthly pest control, TV, and internet. Basically the complex can’t run and be maintained without the owners sharing in the expenses of the upkeep. When looking at HOA fees, consider what they include, and what they are not including, so that you know your own responsibility for other services.
Do you have other real estate questions, contact us!
