Condominiums outsold family homes for the first year in history, according to the latest sales figures from Coldwell Banker JW Bermuda Realty.

Data available at the end of September 2004, shows that condos outsold family homes by 46 percent.

The realtor said in its monthly sales market update that this was due to a number of factors including continued lower interest rates, increased competition between lending institutions, limited inventory in the single family market with slightly less demand for the condo market, more affordable living space and excellent return on investment.

Overall high demand and dwindling supply caused all real estate to appreciate by double digits in 2004.

The realtor reports that the scarcity of available building lots resulted in multiple offers pushing land prices up on average by 70 percent.

Ultimately developers won out purchasing the majority of the lots.

The land shortage also prompted developers to purchase existing buildings which they subsequently demolished and redeveloped.

As in 2003, Warwick and Pembroke remained the top parishes to purchase property in 2004.

A wooden house in poor condition in Pembroke was the lowest selling residential property, at $200,000. The highest priced residential property sold in the Tucker's Town area for $4,500,000.

The realtor reports that several properties priced over $2 million sold in Pembroke, Hamilton Parish, Smith's and St. George's during the year.

The majority or these, 83 percent, were over the $126,000 ARV making them available to international purchasers.

At the same time sellers continue to put their property on the market for traditional reasons.

A Coldwell Banker study of buying and selling patterns of Bermudians, shows that most people continue to sell because of surplus, which can include property that had been inherited, division of family assets, or disposing of investment property.

Equally, many sellers are trading up from smaller properties to large accommodations or prime locations.

The third most common reason for selling was because people were moving off the island.

During 2004, the realtor reports that 53 percent of purchasers were "first time homeowners". One-quarter of those who bought real estate during the year were doing it for investment purposes. The majority of investors, 63 percent, purchased condos.

Coldwell Banker said: "This statistic reinforces some of the trends that we see in the rental market with tenants desiring new or newly renovated living quarters with energy efficient, top of the line appliances; open spaces; solid surface countertops and natural wood cabinetry; air conditioning throughout and neutral tiled floors."

Looking forward to 2005, Coldwell Banker expects another strong growth year in what is certainly a "seller's paradise".

"Last year with the heated market, we saw multiple offers on nearly all properties under the $1,600,000 mark with as many as 35 offers on one single property in a central parish with a listed price of just under $600,000."

The realtor cautions however that potential purchasers "need to be patient and prepared".