Property Group Limited director Chris Valdes Dapena is anticipating that condominium prices may soften as more condos come on the market.

?We are beginning to see a shift in demand and condos have reached a peak in their current curve in prices,? she said. ?I am anticipating some softening, there is more inventory coming into the Bermuda market, this may cause a softening in the market.?

Co-chair of the Real Estate Division of the Chamber of Commerce Susan Thompson agreed with Ms Dapena.

?As more properties come on to the market there is not as much pressure on real estate demand hence it could cause a softening in the market,? she said.

Not all realtors are in agreement that this will be the coming trend, however. Jeff Payne of Roderick DeCouto Real Estate disagrees. ?I don?t see a softening in condo prices,? he said. ?The market is in a state of equilibrium. What is coming on the market is being sold in a reasonable time period.?

He also does not believe there is a glut in condo development as the supply of condos coming on the market is meeting demand.

?It is our opinion that most condominium prices are now pretty much in sync with the economy in general,? he said.

According to the JW Coldwell Banker Realty July 2005 Sales Market Update for the first half of the year (from January 1 to June 30) 68 condos were sold with the average sale price of $790,000.

The lowest priced condo sale recorded was a one bedroom property property in Sandys sold for $325,000. By contrast the highest priced condo was a ?Wharf? unit that reportedly sold for $1,950.000.

Ms Dapena said the property market operates on the principle of supply and demand and that people tend to enter the condo market because they can not afford more expensive properties.

So if there is an excess supply of condos coming on the market, it could put downward pressure on the demand for condos resulting in lower prices.