cope with the declining economy, real estate agents said yesterday.

According to a cross-section of the Island's agents, the whole market is `soft' with the east and west ends of the Island particularly affected.

"We still have a lot of interest and are showing properties extensively, but there's a definite weakening in the market at both ends of the Island,'' said Mr. Arthur Jones, president of Jones Waddington Ltd.

Mr. Jones listed three factors influencing the market: The impact of the next year's closures of the Canadian base at Daniel's Head and the US Naval Annex, both in Sandys; an over-building boom Bermuda had in good economic times; and the recession.

"All the factors have combined together and have weakened the market,'' he said. "I can't apply percentages across the board but it's almost like a spiral of decline. It just depends on the type of property and its condition.'' According to the Bermuda Housing Corporation, as of June 1991, there were 2,380 vacant units spread throughout the Island.

Mr. Jones said a cottage in good condition will sell no matter where it is as long as there is a demand. But with a house in "secondary'' condition in a denser area, owners will have more trouble even if the cost is lower. He added that most people prefer living in central parishes to have easier access to Hamilton.

"The vast majority of people are looking at houses under $500,000 in the $300,000 to $450,000 price range,'' he said. "There's still a fairly strong demand for property at that price level but it eases off the higher you go.'' Rents are also coming down, Mr. Jones said. "A studio apartment for which landlords may have received $2,000 a month in pre-recession days, might now only rent for $500 or $600 a month,'' he said.

Mr. Buddy Rego, chairman of the real estate Division of the Chamber of Commerce, attributed the lowered costs to those in financial difficulty.

"I would say anything sold recently with drops in prices, is coming from those in a position where they must sell for personal financial reasons,'' he said. "A lot of agents will tell you their phone is ringing but there are more listings than in quite a while. There's a lot more choice and what we have now is a halt to any significant increase in market activity and prices.

"But except in circumstances where someone for reasons beyond their control are forced to sell property, I find it is very rare that a person will have to sell property for less than what they paid for it. In comparison with North America and the United Kingdom, ... we're doing very well.

"Asking prices are coming down, but they may have been too high in the first place (before the recession),'' he said. "What might be affected more would be the rental side of the real estate business.'' He added that with more money available for mortgages at the banks, now was a good time for persons to buy real estate.

"Mortgage values, the amount they give you as a percentage of the purchase price, are lower than previously but there's more mortgage money available than in previous years,'' he said. "Banks are more cautious and conservative in their lending. One doesn't want people to borrow where they can't afford to service the mortgage.'' Mrs. Elaine Darling, a partner at Darling & Dapena Realty, said: "The whole market in Bermuda is generally soft,'' she said. "There are lots of condos all over standing empty. I think its a general trend all over the Island and I think the problem is similar to other countries.

"I think prices are more negotiable but I don't think they are decreasing. I think people are having financial problems and obviously they're more willing to negotiate and the fact that the Canadian forces are moving out and people are counting on those occupancies only adds to it.'' But LP Gutteridge Limited president Mr. J.J. (Jack) Outerbridge, said the entire Island has been affected, in some cases as much as 15 to 20 percent.

"We've lost some 5,000 non-Bermudian workers who have left vacant units, I think the problem applies pretty much across the board,'' he said.

"I think lots of people are still interested in buying but they're being careful and really shopping the market pretty hard. Somerset will probably be hit hardest when the Canadian forces go out.''