Area Analysis 18 The current situation is that the recovering housing market and general economic conditions on the US mainland is slowly having a positive impact in the US Virgin Islands’ real estate market in terms of overall average home prices as well as the number of homes sold. Home sales in the territory, while still lower than 2007 figures, have increased annually since 2012. According to statistical data provided by the Multiple Listing Service, the value of real estate sales in the St. Thomas-St. Croix MLS grew by 54% in 2014 to nearly $200 million on 883 transactions; volume seen since 2008 and sales pace not seen since 2007. This growth follows 20% growth in 2013 which came after six years of declines. The average sales price surpassed $300,000, a level also not seen since 2008. MLS Sales Volume - St. Thomas and St. Croix $400,000,000 as $350,000 | | $240.00 $350,000,000 tT OT L__ 99.0 0 $300,000,000 ‘en Tainan SRR eReEmanenamEEEenamameaaaaS _} #820,000 + $310,000 $250,000,000 +» — a 8300000 | - $290,000 ee ee ee ee ee ee $200,000,000 $280,000 $150,000,000 — eneeen aememnren we Lie | $260,000 $100,000,000 | Tain... | $250,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 == Sales Volume Average Sale Price Source: St. Thomas/St. Croix MLS Real Estate Ownership and Taxation Ownership is “fee simple”, under the U.S. flag. There are no restrictions against purchasing solely for investment, and no laws dictating when, if ever, you must build on undeveloped land. It should be noted that for 2006 there was a reassessment, and the tax rate changed to $3.77 per $1,000 based on 100% of assessed value (for residential property); however, there was an ongoing court challenge to the reassessment, and a federal injunction blocked tax bills until the issue could be resolved. As of December, 2013, the 2006, 2007, 2008, 2009, 2010, 2011 and 2012 tax bills have all been issued under the old 1999 assessed values and tax rates. This federal court injunction regarding the tax