I think the biggest reason that alot of property is for sale is that, relatively speaking, Utila and Roatan are undiscovered (as compared to say, Grand Cayman, Cozumel, etc.). There is also still a perception that Honduras is the Honduras of the 1980s. That said, property on either of these islands is incredibly inexpensive when compared to the same types of property on other Caribbean islands. You can get 75' of beachfront with an outstanding reef literally 40 yards offshore for @ $100,000. Try finding that on Cayman, coz, the BVI, etc. You can also get title insurance from a number of US Title companies, including First American.
What's the downside you ask? The Bay Islands are still trying to figure out how to deal with their new found success. Infrastructure, while generally reliable, is subject to outages and they grids are really being stretched with the influx of new residents/owners. That said, we love the Bay Islands and Utila in particular.
Disclaimer: I am not a real estate agent, just a happy property owner on Utila (Our property is just about a mile east of Utopia). I am happy to answer additional questions offline if anyone has any questions. You can see information on my property at the below links to give you an idea of the type of property available.