From Tucker's Town to back of town, properties are selling as fast as they are going on the market.

And there are no indications of the market softening anytime soon, says real estate agent and former Government MP Philip Smith.

"I've seen a buyers' market before but this is no comparison, I've never seen anything like it," said Mr. Smith who has been an agent for 14 years.

"We have a waiting list of clients wanting houses between $500,000 and $1 million."

And often location does not matter, people are so anxious to get a piece of the rock.

"It's all over the Island - you can put a house up for sale anywhere and it will sell," said Mr. Smith.

He believes deals can still be found, but those deals do not often reach the newspapers. It helps to have your name listed with a real estate agent, Mr. Smith says.

"Each agent has a list of clients, so when a property comes in and the price is a fair price, 99 per cent of the time it is not going to reach the newspaper," he revealed.

He says homes are often priced to allow for the drop, though homes can often sell quickly and at the asking price.

"Here lately I've noticed in the last few months that they are going for the asking price," said the real estate agent. "In fact, a couple went for over and above the asking price!

"I have some clients who are very thrifty and patient and it's okay to be patient, but the market has changed so much that the property you saw at $300,000 today, six months down the road will probably sell for $350,000."

Mr.Smith admits those with the financial means have the inside track on properties. In fact, he says the million dollar home buyers are often cash buyers, bypassing the banks altogether.

"The sad part about the whole industry is the guy earning minimum wage is in trouble all-round," said Smith.

"The high prices drive up the high rents, so if he's looking to rent he's going to have a problem finding something he can afford. And the chances of him saving up enough money to buy a house are practically zero."

High rents are forcing tenants to become desperate in their search for a house to buy.

"People are forced into a position where they have to buy, either being evicted or the rent is being doubled," Smith stated.

"The landlord shows up and wants to double his rent, he knows it's not under rent control and is worth more. He will give a $500 increase now and then $700 later, so all of a sudden reality hits home, you start looking around to buy but haven't saved up enough money.

"The other side of it is they have been living in a house for 15 to 20 years and now the landlord needs it because his son is getting married. Those cases are really pitiful because panic sets in."

The Bank of Butterfield is offering 95 per cent financing for first time home buyers. More financing equates to higher mortgage payments which then stretches even two income households to the maximum.

"In the past when there was a buyers' market the money wasn't available like it is now," explained Smith.

"There are a lot of Bermudians who have what I call a good income so that five percent (down payment) is very attractive. It's surprising the number of two income families with income over $100,000. At one time there weren't that many around but today there are lots of them.

"Usually they are young and didn't plan to buy but the landlord needs the property and they realise 'if I stay here too long I'll pay for this guy's house'. They don't know what they are looking for, they know they want a three-bedroom house, but if you ask them what type or what area, they haven't really thought about it."

Mr.Smith admits sellers are 'having a field day' in the present real estate boom. He only sees prices increasing even further unless the economy slumps into a recession.

"Anybody who is planning on buying, I would advise them to buy now if they can afford it," he urges.

"I don't see the prices easing up, not at the present time. There is too much money around and the construction industry is booming. The supply is so limited and demand is so great that I don't see it easing, not in the next year or two."

Mr.Smith, who works for WJ Seymour Real Estate, is selling properties from one end of the Island to the other.

"I have a list of clients in St. George's that I can't find anything for and I've never seen it like that before," said the former politician.

"And the same applies for Somerset, I have clients in Somerset and we can't find them anything in Somerset.

"I was talking to a contract this morning and he was saying he was thinking about developing some houses to sell and he asked me which would be the best area to build in and I told him anywhere. It will sell, I don't have any fears about that.

"We have a waiting lists of clients looking for properties between $500,000 and a million and we don't have the properties to sell them. The demand in that area is much greater than the supply."

Homes with apartments are in greater demand as would-be buyers are seeking two unit houses to supplement their income. "The demand amongst working class people has always been for two units," Smith believes. "We do get requests for cottages but most people are looking for a house with an income.

"Then once the house is paid for the income from the apartment could be a part of their pension money."

It might be a good market for the real estate agents, but Smith stresses that they have to work harder, too.

"At one time people came in and listed their property with you but nowadays agents have to be on the lookout for properties that are for sale," he revealed.

"As lucrative as the business is an agent has to work twice as hard for the same commission as ten years ago. Everything has become so technical and the high prices have an effect on people's thinking.

"Naturally they are a lot more cautious and quite often the lawyers are involved at a much earlier stage. So the agent finds himself or herself dealing with two lawyers on each transaction, representing the buyer and seller.

"Each lending institution has an appraiser and they will appraise the property and you will get your mortgage after that. The Bank only lends you money based on their appraisal. So if you are buying a house for $400,000 and they are offering you 95 per cent but they only appraise it at $300,000, they will only offer you 95 per cent of $300,000. You will have to come up with the rest if you still want it." And it is not uncommon these days for agents to call other agents once they see a property listed.

"Once you list the property in the newspaper you get half the other agents calling you up, wanting to 'co-broke' with you so they can have permission to sell it as well," explained Mr. Smith.

"When they 'co-broke' with you they will give you a commission. It's been going on for a long time but has gotten worst in the last six months. Those that are priced fairly will sell in a week or two. Those that are overpriced will sit there for two or three months, until such time as the owner decides to bring their price down."

Mr. Smith says he will advise a client if he thinks the property is priced too high, which usually comes from feedback from potential buyers. The Bermudian buyer is much more knowledgeable than they realise, they don't fall in love with a property emotionally and waste a lot of money," he believes.

"They are looking to get the most they can - even in this market - for their money. A person needs to look around as much as possible. They are going to make a mistake if they don't."

Most of Mr. Smith's clients are middle income people, looking for houses in the $300,000 to $700,000 range. He believes it is still cheaper to build, though the price of land is starting to rise again. "You need a reputable contractor, and you may have to wait until he gets to you," he stated.

Continued on Page 34