2023 St. John Real Estate Wrap Up

As St. John celebrated Old Year’s Night as it is called here in the Virgin Islands, we took some time after the festivities to run the year-end numbers.  I always like to wait until the very end to make sure we capture any of the last-minute closings.  We have a house under contract scheduled to close tomorrow as we speak, but that data will have to wait until next year.  

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Sales remained strong overall in 2023 with almost $120 million in total volume market-wide on St. John!  The average home price bolstered a 13% jump from the previous year, and the marketplace of actively listed homes is following that trend.

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Land sales dipped, not only in total sales, but also in average price, which was down 19%. While the decline in land sales and uptick in home values are likely a reflection of the higher costs of construction, new home builds are very busy island-wide with some stunners expected to complete in 2024. 

Cliffhanger - 3 Bed 4 Bath - $1,699,000

Secret Seashell - 3 Bed 3.5 Bath - $2,100,000

As I processed all the numbers, the data point that seems most significant to discuss is the stability of the marketplace.  Looking back 21 years (the complete history of the digital MLS on island), we have certainly seen a few dips and climbs, but ultimately the market is dependably stable. When I look at median sales prices, rather than average, to get the truest feel of value trends, the median home price increased 58% over the last 21 years. An average 2.75% year over year.  What gives me confidence in the market is that this is not too high and not too low.  It slightly outpaces the national average of 2%.  I use this number to forecast appreciation and see what you could expect 10 or 20 years into the future. 

At 2.75% annual non-compounding growth, if you purchased the average-priced home on St John in 2023 for $1.7 million, you could reasonably expect it to be worth $2.17 million in 10 years. 

When I run that home through a proforma including conservative vacation rental income and all expenses of owning a home you are looking at a capital gain of $830,000 or a 62% return on your investment.  A 6.2% annual return on your cash is pretty hard to beat when you take into account that you would also be able to enjoy 8-10 weeks a year at your new Caribbean home. 

Want to talk about it deeper?  Give us a call at 340-626-8229 or schedule a virtual or in person showing of your favorite listings.

Explore the Newest Villa Rentals on St John!!

We have been doing some very exciting work down on St. John, in the US Virgin Islands, expanding our portfolio of amazing vacation rentals and we have a couple you must check out!

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Introducing the stunning DRIFTWOOD VILLA - Besides its luxury finishes, this brand new (finished in 2023!) St. John Villa is located in the prestigious Ditleff Point community. A gated luxury neighborhood with one of our favorite secret beaches, boasting some of the best snorkeling on St. John just a short walk down from the villa.

With dual bay views, a huge, heated vanishing-edge pool, three equal king master bedrooms and an awesome plush theater room that adds three bunks for kids, AC throughout, full back up power and did we mention the views from the kitchen?! This is likely to become one of the crown jewels of vacation rentals on St John.  See the full details here. 

Introductory rate for this summer is 20% off with the code “driftwood” when booking directly on stjohnhomesandvillas.com

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The newly added STONE FALLS has a schedule that’s filling up fast despite being launched only a month ago.  The impeccable design and old world details of the interior of this home make it a truly, unique show piece. It’s the waterfall pool, comfy outdoor lounge, lively koi pond and the private 7-hole mini golf course that really sets this villa above the rest. 

A short, easy walk to the common beach parcel for access to paddle boarding, kayaking, relaxing and boating are the amenities that set this villa apart.  Three air conditioned bedrooms with interior access, a chefs kitchen, sonos system and end-of-the-road privacy.  What more could you wish for?  Check Out Stone Falls Here!

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While not new, did you know we updated and remodeled several of our properties this off season.  We are so proud of the work we did on Cliffhanger, Tropical Manor, Paraiso Azul and 2B Peter Bay.  They are truly transformed and guests are LOVING IT. 

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Cliffhanger Before

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Cliffhanger After

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Tropical Manor Before

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Tropical Manor After

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2B Peter Bay Before

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2B Peter Bay After

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Paraíso Azul New Outdoor Furniture

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Paraíso Azul New Outdoor Furniture

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All of our properties are 10% off for the month of May with the code “MAYSTAY” when booking on our website.

As always, we are ready to help you plan the vacation of a lifetime or a lifetime of vacation.  Contact us today to book your next St John villa rental or talk to us about Real Estate on St John.  See our featured listings for sale here

2022 Real Estate Year in Review

The market remains healthy after a busy year in 2022.

With 2021 flexing as the biggest year in real estate on St John, we wondered how 2022 might do.  Turns out, the market remains healthy and 2022 carried on the steady stable trend we have seen for decades on St John.   While 2021 was likely an anomaly year seeing 117 closings at a higher average price, 2022 turned out to be the 2nd highest on record.  Seventy-nine homes sold on St John in 2022 with an average price of $1.55 Million.  If any of you have had a chance to talk with me about the St John real estate market, one thing I have consistently advised on is that the factors here produce a dependably steady and stable market.  We are not subject to huge upswings or down turns like the volatility you see in many markets in the United States.  If you look at the trend curves they are nearly straight lines.

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This stability is due to, but not limited to, a couple of unique things on St. John:

1.     The Virgin Islands National Park being the biggest land holder and therefore protecting the natural beauty of the island from over development.

2.     The fact that our market is not under any pressure for people who HAVE to buy or HAVE to sell.

3.     The undeniably strong demand for travel to St John as one of the top tropical destinations in the world year after year.  We were surprised to find that 2022 was somehow able to beat out 2021 in short term rental income, but it did so handily with our owners enjoying the extra income while still coming to visit their lovely homes during prime weeks.

In investing, what you want is steady slow growth.  Of course, it’s lovely to hit the jackpot and cash in on quick gains, but long term is the best way to look at real estate investing and the long look on St John is predictably bright (and sunny).

We discussed homes above, but the land market did not care about 2021’s banner year and just went ahead and beat it.  I expect to see a lot of new gorgeous homes built in the next 24 months.  Check out this amazing lot we have listed with views over the dramatic Reef Bay Valley and to the North over Maho Bay!

We have a few select weeks left for winter and summer 2023 and next winter 2024 are filling up fast.

Check out our diverse inventory of stunning vacation rentals on St John and book your next stay with us easily online with just a few clicks.

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How to Design a Home or Villa with These Top Interior Design Trends for 2023

2023 is fast approaching, and if you're looking to make a few interior design changes this year or next, then we have you covered. Here are the top 3 simple upgrades you can do for your space as the off-season evolves and unfolds.

“Simplicity is the ultimate sophistication.”

-Leonardo da Vinci

Here are 3 of the top interior design trends you can easily implement for 2023:

1. Minimalist designs with smooth lines and open floor plans have been popular for decades now, but they'll continue gaining traction in the upcoming years. This style allows for more natural light and the calming, Caribbean breezes to enter your home — which helps reduce stress levels — and promote a more communal atmosphere between your family members or guests.

2. Natural materials like wood floors, stone countertops, and bamboo cabinets are making a comeback in kitchens and bathrooms. These materials don't just look attractive; they also provide eco-friendly options for homeowners, such as recycled materials and sustainably-produced products that help reduce a carbon footprint without sacrificing style.

3. Bold colors and textures are another thing that you should consider doing and some might call this "trendy," but trust me it is here to stay a while! Customized spaces that reflect the unique tastes of their owners are difficult to balance, but with help from vintage fads and modern twists the spaces come together in a timeless way.

Implementing these trends can upgrade and enliven your home or villa in no time:

• Minimalistic designs and open floor plans are simple to achieve when you start by downsizing furniture and content as well as the quantity of items in the space. This is as simple as cleaning clutter from spaces like tables and switching out chunky and bulky furniture for smooth, skinny, or transparent materials. Tips would include luxury monochromatic colors with some gold accents as an ongoing trend with emphasis in bathrooms and kitchen spaces. Another grandiose upgrade from Renaissance architecture returning to interior design are archways. Applied to any aspect including architecture, furniture design, and decorative elements. Arches draw the eye up and give spaces a more open, lavish, open feel.

• The nature chapter trend will link wellness, living organically but staying up to date, and comfortable. Fabrics like wool and cotton will continue their reign – but throwing in a touch of velvet would be my biggest tip for 2023. Adding a vintage feel with some flair creates a key element for extravagance. You should also consider decorating with plants. Plants are great for bringing dashes of life and nature into any room, especially when they are potted in beautiful pots or vases guided toward your styled room. The more plants the merrier because, hey, they also help purify the air in your home or villa, which is always a plus!

• Bold colors luxury homes are all about this upcoming season are pinks and purples. If you want to make your home feel like a palace, then these colors will do you the trick making your space feel inviting and fascinating. You can even use sprinkles of unique textures throughout your house in any room. But beware, pops of color in your home or villa can add some pizzazz to an otherwise boring room, but it's important that you don't go overboard where it becomes tacky instead of classy.

The most applied trend would, of course, be daring accent walls and although wallpapers are too difficult to make stick in the tropics, you can always use new textures on a wall as well for an appealing new take on the trend. These walls add enough unique character and personality, while enticing you in with ease, but still offering that pop of excitement your attention shoots to when you first walk into a room. However, in the Caribbean, a cute touch of style with added practicality would be framing pieces of wallpaper and hanging them considering wallpaper is a difficult material to work with in the humidity of the Virgin Islands.

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My favorite trend has been catching wind in the fashion industry these past couple years and is finally making a debut again in the interior design world. The iconic revival of 70’s vintage mushroom décor can be executed with a simple gold lamp, or an intricate accent wall. As it gains popularity, many people are jumping on the fashionable fungi train. So, whether your style leans you toward moody monochromatic tones and marvelous marble countertops, or funky fabrics and fungi inspired foyers, small upgrades around your home or villa can indeed make you the most trendy and updated around.

As a Property Management Team, we work hands on with each and every one of our villa owners, checking in daily with any needs our clients or their guests may have. We spend a lot of our time in the off-season helping our owners spruce up their properties for the upcoming season, including interior design and remodeling. If you’re looking for a Property Management Team or Villa Rental Company who are on call 24/7, with over 20 years of experience, extensive 5-star reviews, are a single source vendor for every one of your needs, and is properly licensed – then CONTACT US and let’s talk about your property and rental goals.