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Realtor: Average condo price falls to around $387,000

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The Bermuda housing market suffered both a drop in property values and a significant decline in sales volume last year.

This from Rego Sotheby’s International Realty president Buddy Rego, who took issue with some of the numbers in a report by Global Property Guide yesterday.

The report said the Island’s luxury market was holding up, and multi-million-dollar home sales were climbing.

But Mr Rego said there had actually been a significant decline in property sales volume overall, including in the luxury market.

However, citing his company’s most recent figures, Mr Rego said they showed that property price falls for stand-alone homes in the non-luxury market showed no appreciation but they were not as “catastrophic” as in the condo market in 2012.

And in the luxury home market, the average price did rise, from approxmately $5 million in 2008, to about $6 million in 2012, while the median price rose from about $4.1 million to $4.8 million.

“Average sales prices have held relatively firm and increased, but volume has taken a dramatic downturn,” Mr Rego said.

Last year recorded the closing of seven luxury home sales to non-Bermudians compared to 17 in 2008, while luxury condo sales fell from 12 to three.

Only one luxury property actually came under contract in 2012.

For this year, Mr Rego said price and sales volume in the market will largely depend on any land ownership policy changes made by the new Government.

For homes under $153,000 ARV, the average sale price in 2008 was approximately $1.25 million compared to an average sale price of about $1.1 million in 2012.

The median sales price in this sector was about $1.15 million in 2008 compared to approximately $940,000 in 2012.

In the condo sector, which is seeing oversupply, the average sales price for units under $32,400 ARV has plummeted from about $670,000 in 2008 to some $387,000 in 2012.

In the over $32,400 ARV market, condos have come down in average sales price from about $1 million to around $800,000.

The volume of sales of non-luxury condos of less than $32,000 ARV fell from 188 condos in 2008, to 88 in 2011 to just 24 in 2012.

Rego Sotheby's International Realty president Buddy Rego
Oversupply: Condo prices have fallen sharply in recent years

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Published January 11, 2013 at 3:00 pm (Updated January 11, 2013 at 3:01 pm)

Realtor: Average condo price falls to around $387,000

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