What a year it’s been! Despite two hurricanes in as many weeks, there is much to feel good about in the market. Compared to the same period in 2016, the average sales price of homes rose a strong 12% fueled, in part, by a dearth of inventory in this segment of the market. At the close of the year, there were 15% fewer new listings than last year and despite the fact that 6% fewer homes sold in 2017, the low supply coupled with high demand, pushed prices and volume up. Other segments of the market saw a mixed bag of results with land showing positive changes due to low inventory in the residential sector. Despite drops in the condo and commercial markets, when we isolate the 4th quarter of 2017, we are encouraged…
While many thought (and hoped) inventory would skyrocket after the hurricanes, that just didn’t happen. While some areas of the South Shore and certainly Frederiksted suffered greatly, Hurricane Maria did not inflict a heavy toll on homes on the east end and North Shore where we tend to see more turnover in the residential market. In fact, compared to the last quarter of 2016, there are 50% fewer listings on the market, driving the average sales price up a healthy 28%! We think this bodes well for the start of what will surely be a prosperous 2018!
