Are you thinking of moving your business to St. Croix, or beginning a new business on island? Should you lease or buy an existing building, or purchase land to build what you envision?
The location of your business will determine how convenient and cost effective it is to operate and how accessible it is to the public. These will be key factors in your decision making, along with zoning of course. As these examples of 6 Company St and 28 Diamond show, a downtown Christiansted property is perfect for a retail or restaurant endeavor, or small office space. It’s a popular location for shops, restaurants, and professional offices. The land parcel would be a great location for a business that needs to be close to busy streets, the airport, and near the deep water container port. These are two very different locations for very different types of businesses.
If you would like to discuss more about this and look at commercial listings on St. Croix, please contact us. We are experienced realtors who also represent buyers and sellers with commercial real estate needs.
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.
Mortgage rate is an important topic for many home buyers and also for those looking to refinance their property. Many are keeping a close eye on the trajectory of interest rates as they plan their real estate purchase.
Freddie Mac started recording mortgage rates in the US in 1971. The median 30-year mortgage rate is 7.41% since the April 1971 according to an article from US News & Reports. The fluctuations from historic highs and historic lows during this period has been dramatic. According to Bankrate’s recent article, “Historical mortgage rate trends can give you a sense of how economic conditions influence the rates available on the market today. From the 1970s to present, mortgage rates have fluctuated up and down. Overall, the annual average 30-year mortgage rate has trended downward since 1972, according to Freddie Mac’s Primary Mortgage Market Survey.”
To learn more about historical mortgage rates over time, we highlighted a few articles that would be helpful to understand:
what have the mortgage rates been historically?
what factors effect mortgage interest rates for homebuyers?
what factors effect mortgage interest rates for home refinancing?
Condé Nast Traveler announced in October the results of its annual Reader’s Choice Awards with the U.S. Virgin Islands recognized as a top island in the Caribbean.
The USVI has been recognized by other publications this year. Here are a sample:
Condé Nast Traveler as a ‘Best Places to Go in 2023
Travel + Leisure has ranked USVI as one of its 50 best 2023 destinations in its For Beach Vibes
Yahoo! Life listed the USVI as one of the top 10 tropical islands to get to in under three hours from the U.S. mainland
Travel Magazine voted USVI as the Best Caribbean Cruise Destination for 2023
Frommer’s gave the territory top billing in its annual Best Places to Go in 2023
Condé Nast Traveler editors voted USVI as having the Best Airbnb in the Caribbean
There is no better time than now to visit St. Croix! If you’re still considering what homeownership in the Caribbean can look like for you, let us help you navigate this process. Our current listings include several exceptional properties sure to have you envisioning life’s next chapter living in America’s Paradise. Give us a call to discuss your options and schedule a showing or two; we’d love to hear from you!
