Why has this property been on the market for so long?
We at Farchette & Hanley get this question about St. Croix real estate often from stateside buyers, with the subtext being, “So what’s wrong with this place?” The answer, however, may be way more nuanced.
First, an important stat: The average length on market for residential properties in St. Croix, USVI is around 200 days — that’s more than six months — compared to a national stateside average of about six to eight weeks. (Yes, “island time” even extends to real estate!)
As with anywhere, when a property sits, the simplest reason may be that the asking price is higher than the market is bearing. However, in the Virgin Islands real estate market, another explanation could be just as likely: The right buyer just hasn’t come along yet. On a tiny island like St. Croix, a large proportion of home buyers are not local, and property purchases require travel and planning. Many buyers take their time making a purchase as they intend to buy island property to fulfill a dream rather than, say, for more time-pressed reasons such as a job relocation.
What’s more, the Virgin Islands real estate market operates opposite the mainland, with the most movement during the winter months when buyers look to escape cold weather, and things getting quieter come summer and hurricane season. Sellers, on the other hand, may wait until the end of high season to list, wanting to get in one last winter in the Caribbean to enjoy their property for themselves. This means their listings may go live just as the buyers are dwindling, making the days on market stretch out during a time when relatively fewer showings are occurring.
Yet another reason a property may sit could be that the sellers just aren’t in a hurry, either. Possibly they’re making money on their investment in the form of vacation rentals, or they’re simply willing to hold out for the right offer price. Some sellers may even withdraw their listing during hurricane season when they prefer to keep it closed up, so the cumulative days on the market looks way outsized compared to days when it could have been considered for purchase.
A quick story to illustrate why a property’s “days on market” isn’t all that meaningful: We had a listing for a beautifully renovated condo that received regular requests for showings, but no offers. Though we thought the listing price was reasonable, Chris recommended a price reduction, which the sellers agreed to. It being summer by that point, we waited out a lull in showings. Then, as hurricane season was coming to a close, we had two separate buyers view and bid on the property in one weekend — with the final purchase price going above asking.
The bottom line: While asking about the days on market is a perfectly valid question, the answer may surprise you.
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