there is little likelihood that prices will drop significantly.

With an abundance of quality properties now on the market, realtors are facing their toughest challenge. Agents have in many cases found themselves trying to sell homes at inflated prices to a market that has little or no confidence.

The problem has been further exacerbated by the present industrial action, and some potential home buyers have put off the search for a new property until things cool down on the labour front.

While realtors six weeks ago reported they were getting some indication of a possible turnaround in the market, inquiries have come to a standstill and will probably remain that way until the labour situation is resolved, they said.

It would seem illogical then that homeowners desperate to sell their properties would remain relatively firm on price.

But many realtors yesterday indicated that the problems facing the real estate business are not simply recession and industrial strife. In some cases, home owners are refusing to sell their properties for lower prices than they bought them for say ten years ago.

"The whole problem is we had the boom of the '80s when prices were out of control,'' said Mr. Roderick DeCouto of Roderick DeCouto Real Estate. "People were asking ridiculous prices and getting it.'' And vice chairman of the Chamber of Commerce real estate division Mr. Thomas Moss said that during the decade of the '80s "the banks had lots of money, people had good jobs, lending policies were very liberal, people were buying and prices soared''.

Now that the market has gone flat, many who are looking to sell their homes are forced to drop their prices to more "realistic levels'' in order to secure a deal.

Nonetheless, in making a special discount offer to home buyers earlier this week, Lt. Col. Craigin Curtis of First Properties of Bermuda told The Royal Gazette that property values are roughly 20 percent overpriced.

While agents generally agreed with that figure -- some said less, others said more -- they said people are not willing to accept 20 percent less than their original asking price.

Mr. DeCouto said he did not agree that all property was overpriced by 20 percent. He said people were not getting the prices they have in the past, but added that prices had not really come down much either.

"I think in some cases people are prepared to entertain 10-15 percent below what they had been asking,'' Mr. DeCouto said. But that is mostly in the case of mortgages being called by the banks, where people must sell because "their backs are up against the wall'', he said.

Mr. DeCouto said that while prices had settled to a "reasonable level'', it was more the case that people are more willing to negotiate than drop their prices.

But he did note that in the real estate section of The Royal Gazette , a unit at Roxdene Apartments was being advertised for $375,000, down from its original price of $425,000 four months ago. "At one time, places at Roxdene sold almost immediately,'' he said.

L.P. Gutteridge Ltd.'s Mr. Andrew Down said there was a bit of activity a few months ago. "People were not necessarily buying more, but there was more of an indication that people were more interested in buying,'' he said.

That stopped once the labour trouble began to escalate, he said, adding that he anticipated another year of flat sales.

Mr. DeCouto said: "Prior to the 21-day strike notice, things in our office were looking very good. Since notice was given, we've had lots of clients watching to see what happens before they commit themselves.'' Mr. Moss, who owns Thomas B. Moss Real Estate, said if the industrial action continues, more people will be left without jobs, and more people will be unable to meet payments on homes.

On the other side of the coin, Mr. Moss said potential buyers, who may worry about the security of their own jobs, may well be put off looking for the time being.