Positive Market Indicators
Market intelligence recently released by Coldwell Banker Bermuda Realty indicates that the first quarter of 2014 outperformed the same quarter last year as actual sales closings were up overall by 38%.
Over 50% of the sales volume recorded for 2014 so far involves condominium units either in our suburbs or in the city; reflecting an increase in consumer confidence and recognition that prices in this sector, in many instances, reflect great value. Notwithstanding the economic challenges experienced by many community stakeholders, we are seeing the emergence of multiple offers for property in sought after areas or market segments which have been fully exposed to the market and priced correctly. Although it remains a buyer’s market, we have been working with our vendors utilizing our comparative market analysis pricing tool which offers our sole listing clients the best possible advice in what is still a very competitive marketplace.
Interestingly, our list to sell price ratio (which measures the percentage of list price that Coldwell Banker Bermuda Realty achieves for their vendor on a sale) has held at 92% in 2014, indicating our agents continue to recognize and respond to market trends in the pricing of property for sale. Our agents have also noticed an increase in demand from Bermudian buyers for executive homes prices at $2,500,000 and above. However, with a shortage of inventory, it remains challenging to readily satisfy this demand.
“Notwithstanding these positive indicators, we are still of the opinion that we do not have enough robust data to suggest a sustainable trend.” says Brian Madeiros, President & CEO. “We continue to closely monitor the commercial office market focusing on existing office inventory and new demand as key indicators for economic growth. Our market intelligence suggests we need to see significantly higher levels of new companies moving to Bermuda in order to see sustainable improvement trends in the residential market. If we wish to see tangible changes in economic performance through new job creation, our political and community leaders must embrace strategies which seek to very aggressively populate our vacant office accommodation, which now sits at over 600,000 square feet.”
Article by: Brian Madeiros - Coldwell Banker Bermuda Realty