The real estate market began to bounce back in 2014, according to experts.

And Coldwell Banker Bermuda Realty predicted the first quarter of this year would outperform the same period in 2014.

The 2014 report from the firm said: “Bermuda is eagerly looking forward 2015 with the renewed hope of jobs and a growing population which will lead to a strengthening of the economy.

“We too look forward with optimism — sales transactions are up and the inventory is at its lowest point in over five years.”

The report added, however: “But we move into the New Year with the understanding that we have a long way to go in this recovery and it will take all of us working together to rebuild a better Bermuda.”

Coldwell Banker said that — although all the figures are not in — 2014 was on track to show a growth in home buying, with sales of condos up eight per cent on 2013, while family home sales are likely to make up 40 per cent of the total sold, compared to 26 per cent the year before.

The report added that the price of a house had held steady compared to the previous two years, with the average around the $1.1 million mark.

And it said that Warwick looked set to overtake Paget and Pembroke as the most popular parish for 2014.

The report added: “This reinforces that central parishes remain the desired locations and with preferred location comes premium market prices.”

St George’s parish, however, remains the area with the highest average price, reflecting the cost of up scale residences in the wealthy enclave of Tucker’s Town.

But Sandys — at the other end of the scale — is the best place to look for a relative bargain in the property market.

The Coldwell Banker report said that, although there is no central register of rental transactions, it had the biggest share of the sector — and its figures indicated a 20 per cent rise in the number of rentals for 2014 compared to the previous year.

It added: “Overall, there have been no significant price increases over the past 12 months, but we are seeing marginal increases and prices are no longer falling.

“City living and centrally located units are bouncing back much faster than rentals at the end of the Island.”

The report added that the commercial property sector had also signalled that the economy was recovering from the long recession.