Published On:Wednesday, March 10, 2010

By NEIL HARTNELL

Tribune Business Editor

Buyer traffic and inquiries have increased by 15-20 per cent year-over-year, the Bahamas Real Estate Association's (BREA) told Tribune Business yesterday, adding that if recent trends continued over the next several months the industry would be in "better shape" by July/August this year.

Acknowledging that while it would take time for the Bahamian real estate market to return to pre-recession levels, William Wong said there were "no fire sales" taking place in either the domestic or international segments, with sellers largely still obtaining the prices they were seeking.

The BREA president said buyer inquiries and traffic into realtor offices was "a lot better than it was last year", having increased year-over-year "anywhere from 15-20 per cent".

"I know some people are still feeling the pinch, but some offices are showing some signs of business coming back," he told Tribune Business. "My office seems to be getting back into the swing of things, thank God. The local market is picking up, and we seem to be getting some life from the international side.

"Business seems to be improving, and it's a lot better than it was two to three months ago. There are more inquiries, traffic and some people have signed sales agreements, so that's a good sign.

"Hopefully, this trend continues, and if it does, by July/August - while it won't be back to 'normal' - it'll be a lot better than last year. Hopefully, we will see a good recovery over the next few months."

Michael Lightbourn, head of Coldwell Banker Lightbourn Realty, agreed with Mr Wong that the Bahamian real estate market appeared to be improving, although the picture was cloudy.

"I would say the answer is yes, but it's a mixed bag," he told Tribune Business. "In some areas there's things happening quickly, and in some areas things are happening slowly. We sold two beach lots in Great Harbour Cay [in the Berry Islands] at the weekend."

Meanwhile, Mr Wong told Tribune Business that international buyers "seem to be taking a closer look" at the Bahamas, as evidenced by recently-closed sales and purchase agreements in communities such as Ocean Club Estates, Old Fort Bay and Lyford Cay.

"Prices are holding firm," the BREA president added. "There are no fire sales at either the high end or the low end. One of the problems we have in New Providence is a lack of inventory here, so sellers have largely been able to get what they've been looking for, maybe 5-10 per cent less than the asking price, because you always put a little cushion in there."

Rental prices seemed to be holding firm, too, Mr Wong told Tribune Business, adding that he had returned from a ReMax conference in Orlando where optimism about the state of the US/global economy and real estate market appeared to be picking up.

"My colleagues were showing some optimism that things are improving," the BREA president told Tribune Business. "Once things get better in the US, it usually comes over here."

He added that while other Bahamian islands were not doing as well as New Providence, "business is picking up", with both Abaco and Eleuthera seeing increases in business over 2009.