House inflation is continuing to soar with the average home now going for nearly $1.5 million says realtor Buddy Rego.

But he has hope for homebuyers after spotting signs of a slowdown in the market.

Mr. Rego?s statistics for the year to date show record prices for homes with the average going for $1,462,000 ? up from last year?s figure of $1.2 million.

However, he has seen a decline in sales which could lead to some stability in the market.

Last year his firm Rego Realtors dealt with 241 residential transactions but as of September 16 his company had done only 122.

?The market is still active and buoyant but it has somewhat cooled off,? he said.

Higher interest rates and fussier buyers have seen a drop in sales. ?The heated rush to compete for properties has cooled off,? Mr. Rego said. ?It?s good news for the buyer. I think the trend will continue because a lot of where the activity is happening is in the condo market and there are a lot of units coming on line and planned ? more supply equals less demand.?

And he believes condos are the way to go for house hunters who currently believe they are priced out of the market.

He agreed homeownership was one of the most important indicators of prosperity in any society.

Painting a rosy picture of Bermuda?s economic development, Mr. Rego said wealth had risen throughout society in the last two decades with even construction workers making six-figure sums.

Banks are much more willing to lend huge sums for property with very little deposit money.

?And the products are there now ? condos, 15 years ago you couldn?t give a condo to a Bermudian,? he said. ?It is an innate quality ? they wish to cut their own grass.

?Now they are able to own a piece of the rock. Bermudians have to, like the rest of the world, live in cluster and more high density homes.?

The average condo is now priced at more than $800,000, said Mr. Rego who said high-rise units are also a way out.

?People have to set their sights differently,? he said. ?The proverbial two-bed cottage with a one-bed apartment is not necessarily obtainable for the first-time home buyer because that has a price tag of $1.5 million.

?What can the first-time owner do? To me, without question it begins at a very, very young age ? it needs to be ingrained that saving is critical to homeownership.

?There are lots of people who could buy property but chose not to ? for their own personal reasons.

?I would advise people who maybe historically felt somewhat intimidated in approaching lending institutions that they are now much more user friendly when it comes to ?getting on the ladder? as it were.

?I have tried to talk to people all the time about why they don?t own houses. I have had people who have a $100,000 tell me they cannot buy a house.

?Well, of course they can, if one is resourceful enough. And the ones that don?t have that obviously qualify for home aid.?

He believes housing is more than keeping pace with population growth. ?I would argue there is enough housing here. It just happens to be expensive,? he said.

Mr. Rego, who has 30 years in the business, said realty had gone up by 125 percent in the last decade with an average growth rate of 20 percent over the last five years. Realtors along with homeowners are crying out for stability in the market because high prices could lead to market stagnation.

?From our point of view, we want willing buyers and sellers for properties in every condition,? Mr. Rego said. ?We don?t necessarily increase our livelihood just because house prices are spiralling.?

He called on Government to do more to ease the housing crunch.

?Government has the resources and land,? he said. ?They should go immediately about constructing affordable houses because the land is theirs ? to sell, to rent. It?s just a matter of getting on with it.

?Southside is an example ? they should have that underway.

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