recession-induced slumber after months of relative inactivity.

Many local real estate agents said yesterday they have noticed a surge in inquiries from people looking to buy homes.

Although sales are still slow, there was renewed confidence among realtors that the property could soon be over, particularly if Bermuda had a good tourism season.

Mr. Arthur Jones, head of Jones Waddington, said the success of the summer season would determine if the property sales finally broke the shackles of its downturn or went back to square one.

"We're very busy at the moment and are handling a lot of inquiries,'' said Mr. Jones. "Properties are beginning to sell again.'' But real estate owners are having to accept much lower prices than in the boom period in the 1980s.

For example, one of Jones Waddington's clients who turned down an offer of $740,000 for a three-bedroom house, plus an apartment, when the market was at its peak in the Spring of 1989 would today accept about $650,000 for the same property.

"There are few buyers but lots of properties on the market,'' said Mr. Jones.

"Buyers can pick and choose and force prices down by bargaining.

"Buyers are putting in low offers and, in some cases, these are being accepted.'' Other real estate agents on the Island confirmed that the market was slowly picking up. Kitson and Co. said it had either sold or rented, with an option to buy, all 39 units of the Olive Bank condominium complex in Warwick, which was completed late last year.

"That's a good indication that things are improving after a really bad spell,'' a spokesman said. "There's particular interest in the middle range bracket, although first-time buyers are still having problems.'' At Joy Lusher real estate, the story was similar. "The situation's definitely improving,'' said a spokesman. "The banks are, perhaps, lending a bit more money these days, which has helped. They are not as strict as they were.'' Mr. Jones said the property market would never get back to its heyday in 1989 when "people would pay almost anything to get their foot in the door''.

The realtors said that banks seemed to have plenty of money to lend at the moment but people were not in a position to take advantage of loans on offer because they were uncertain of their financial future due to job worries.

Mr. Jones said Government could help stimulate the market by going through with its plans to relax interest rates.

"That would lead to more homeowners because many people who own six or seven properties as an investment are likely to sell some of them so they can invest their money elsewhere.,'' he added.

"If that money went to local finance institutions then that would lead to even more money being made available for home-buyers.'' Some people in the property industry said that Bermuda's banks should rethink their mortgage policies and offer more longer-term loans instead of the standard 15-year mortgages.

Mr. Duncan McBeath, managing director of Dorchester Realty, warned against being too optimistic about the recovery of the market.

"We have been getting a lot more inquiries recently, but people are still being very cautious,'' he said.

"It looks like the market's going to slowly increase but I feel that, until the hotels dispute is settled and the hotel workers feel safer and more secure in their jobs and the construction industry improves, we will not see too much activity.

"We'll never get back to the old days of wheeling and dealing and buying and selling because I don't think the market's there anymore.'' His company is the real estate firm handling the huge Boaz Island property development, which was rocked earlier this year with the news that 54 properties occupied by Canadian servicemen will be vacated by July, 1993, when the base closes down. Of the 90 houses finished so far, 16 still remain empty.

MR. Arthur Jones MR. Duncan McBeath.