1/23/2008 11:52:00 AM Houses go down in price but condos remain the same
Meredith Ebbin
The real estate market is cooling off, with condo prices virtually unchanged and a single-family home actually cost less on average in 2007 than in 2006, a survey by the island's largest realtor has found.
But housing prices are unlikely to experience a sharp decline because of strong demand and the unique quality of Bermuda's market.
Condos offer the best option for buyers at the lower end of the market because they cost less than single-family homes and there is a glut.
The survey prepared by Coldwell Banker Bermuda Realty agency manager Susan Thompson found that the average condo price in 2007 was $798,000, just $3 more than in 2006, while the average price of a single-family home was $949,000- $22,000 less than the previous year.
The average for both condos and single-family homes was actually much higher, but properties in the top 10 per cent of the market were removed from the survey, which gives a "truer picture of the market", Ms Thompson said.
She said prices levelled off in 2007 and with the condo glut, it would be "interesting" to see what this year will bring.
She also said: "Buyers are savvier and often take longer to make buying decisions and we are seeing a mix of purchasers-first-time homeowners, many second-time owners selling their first home and moving up, plus empty nesters downsizing."
The real estate market remains active and is unaffected by the economic issues U.S. consumers are currently facing, such as the possibility of a recession, declines in the stock market and a stalled housing market, she added.
Limited commodity
That's because land is "a limited commodity" in Bermuda. That, along with rising costs of building material and labour, makes for a more buoyant market,
The average number of houses sold each year has remained constant since 2003-a total of 550.
She said the residential market remain active, and "there seems to be no decline in the desire or purchase power of the consumer for Bermuda property."
At the top end of the scale, 14 single-family homes sold for more than $3.5 million with the most expensive house selling for $17.5 million. Among luxury condos, 17 sold for more than $1.5 million with the highest-priced condo selling at $3.5 million.
If the highest-priced homes had been factored into the average, the average price of a single-family home would be $1.7 million.
In the rental market, demand remains high for two-bedroom units up to the $3,500 per month price range and two-bedroom cottages in the $4,000 to $6,000 price range.
There have been a decrease in demand at the top end of the market-it's harder for properties to command rents higher than $9,000.
For those properties that rent for $10,000 a month or more, a swimming pool is a must.
Reader Comments
Posted: Friday, January 25, 2008
Comment by:
Lee
It's always the same story. A single mother like myself on a $40,000 salary, working nights to increase it by $10,000 will never be able to afford a normal life.
