In Bermuda, people are still coming to purchase property. The housing market here has been virtually untouched by the problems happening just to the north in the US. This news comes from The Royal Gazette as they quote Coldwell Banker Bermuda Realty's agency manager Susan Thompson.
In addition to this news, the Bermuda banks will also cut interest rates as the Federal Reserve did on Tuesday. Three retail banks here lowered their lending rates to investors. The Bank of Bermuda and Capital G, two of these, dropped their lending 0.5 per cent, while the third bank, Butterfield Bank, lowered its rate by 0.25 per cent.
These rate cuts apply to all mortgages as well as personal loans, commercial loans and Bermuda and US dollar credit cards. Lending rates that are better often contribute to increases in housing purchases, which is something property investors here will continue to monitor with these latest cuts.
Why are housing prices in Bermuda still strong? One reason is that there is a limited supply. The condo market here was rather open, which has helped to absorb some of the demand and keep the market moving well.
According to Ms. Thompson, as reported by the Royal Gazette, "In conclusion, the climate in the residential market is very active, there seems to be no decline in the desire or purchase power of the consumer for Bermuda property." Later, "Prices have levelled off when you compare 2007 to 2006. Buyers are savvier and often take longer to make buying decisions and we are seeing a mix of purchasers… first time homeowners, many second-time owners selling their first home and moving up plus empty nesters downsizing."
