Fears over an imminent US recession, a weak American dollar and the sub-prime mortgage crisis have failed to impact significantly on Bermuda's housing market.

That is according to Coldwell Banker Bermuda Realty's agency manager Susan Thompson, who claims in the company's latest newsletter released yesterday, that their records prove that the Island is relatively unaffected by these events in terms of the property marketplace.

Reflecting this, according to data collected so far for 2007, representing the top 10 percent of the market, 14 single family units sold for $3.5 million plus, with the highest reported property fetching $17.5 million, and 17 condominium/town homes units went for $1.5 million, the highest of which reached $3.5 million.

"Traditionally, real estate has always held value contrary to consumer items such as a boat, furniture, appliances, or an automobile which will generally decrease in value over time," said Ms Thompson.

"Real estate nearly always appreciates in value. So the money that you put in real estate is like making a long-term investment which equates to putting money in your pocket."

She said one of the main reasons that real estate remains a sound investment in Bermuda is because land is in limited supply, allied to the fact that rising costs of building materials and labour are putting upward pressure on the cost of construction and the Island has a more buoyant market condition than its neighbours to the west, including the US.

"Tracking the number of properties that transferred ownership in Bermuda over the past 10 years, the figures for 2003 through 2006 are relatively neutral with approximately 550 plus/minus units each year," she said.

"The elevated years prior to this trend are reflective in the same peak years as the world market; when real estate transactions were conducted overnight in North America and the UK. Interestingly, the leaner years were the latter 1990s, when properties were considered more affordable." Further findings from Coldwell Banker's survey reveal that the average price of a condo/town homes (minus the top 10 percent) stands at $798,000, whereas the single family home would be $949,000.

Compared to all property transactions for 2006 (minus the top 10 percent), the condo/town homes price was $795,000 versus the single family unit at $971,000. But is the top 10 percent was not removed from the analysis, the average price for a single family home would be $1.7 million, proving a global recession is far from people's minds in the local real estate community.

The real estate company also notes an excess supply in the condo market, which has absorbed a significant amount of demand in the past several years.

"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," said Ms. Thompson.

"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."