Inventory in the residential sector is low. On average, the market on any given day has 280 +/- residential units for sale, but over the last few months, the market level is hovering at 180 +/- units. What does this mean exactly? Given the high number of buyers, we are seeing multiple offers on properties, a trend not seen in quite some time. Sellers are certainly happy – average sales price has increased by 17% YOY.
The condo market is mimicking the residential market, though some of the metrics are more pronounced. Even though sold volume is down a whopping 66%, average sales price has climbed 18%. The dearth in inventory coupled with the increase in market activity has driven prices up and made the market favorable for sellers.
These numbers surprised us as land seems to be making a comeback! Given the low inventory of houses, buyers are opting to buy and build more than we’ve seen in quite some time. It’ll be interesting to see how these numbers change in the next quarter but for now, land shows sharp declines.
The commercial segment of the market continues to exhibit similar trends. One large sale skewed the average sales price figure, but it’s still encouraging to see confidence in the St. Croix market. Given the hurricane recovery and the emerging opportunities, we are keeping a close eye on the commercial sector.