Is the sun setting on Real Estate deals on St John? We think the market is poised for a big jump in value!

Record Sales, Dwindling Inventory, Crashing Absorption Rates and the Last of the Deals on St John point to a big price jump in our future.

73 homes sold on St John in the last 12 months! When I saw that this morning, despite suspecting a big jump in the stats, I was still surprised. This eclipsed the record total number of homes sold in any given year of from the boom years of 2002-2003. The average price of a home on St John at that time jumped from $732,000 to $1,790,000 in just 3 years after holding steady for a while. Similarly, we have held steady on pricing for a while with average sales price hovering in the $1.1M range for a decade. This may indicate that we are poised for a massive price jump again. A lot of the signs point to yes and residents and hungry investors alike are searching for deals ahead of the trend.

Inventory and Absorption Rate

In June of 2020 there were 172 homes listed for Sale on St John. Today there are 114, a 35% decrease. Average list price has already soared to over $2M. There are, however, 37 of those still listed under $1M and we are still seeing properties sell under asking price, but we don’t expect this to last as the statistics catch up to the marketplace.

The absorption rate in the real estate market is used to evaluate the rate at which available homes are sold in a specific market during a given time period. In June of 2020, that rate was at 51.6 Months. Today, we are at 23.8 months, over 50% below in just a few months and the lowest I can remember.

After watching this market for 20 years, I have not seen such a perfect buying situation and savvy buyers are getting in ahead of the big jump in value that we expect in the coming months.

Scan the MLS now to look for the last deals before the big jump.

Tourism and Rental Demand

Tourism numbers are absolutely soaring with most vacation rentals on St John shattering gross rental revenue records for the year after only the 1st quarter. This phenomenon may be driven by various factors associated with Covid and other destination closures, but it is a great omen for the economic forecast for St John. Even if the numbers don’t continue at the feeding frenzy pace when other destinations open up, St John is now exposed to a huge number of new tourists many of whom have fallen in love with the island as you probably did the first time. The island is performing well and remains a stunning destination even for the most discerning traveler. Planning a trip to St John for 2022? BOOK NOW to secure the best dates and homes.