The average price of a condominium in Bermuda has dropped by approximately 11 percent during this year as the economic downturn impacts parts of the property market.

Those were the findings of Coldwell Banker in its Real Estate Sales Update for June 2009 by agency manager Susan Thompson, who revealed that condo prices had fallen to $733,000 for the first half of 2009 versus $823,000 for the same period in 2008. Condos make up around 60 percent of inventory of available properties.

More condos are coming online too, following the announcement in April that The Grand Atlantic Hotel and 125 affordable two- and three-bedroom condos would be constructed on the former Golden Hind site on South Shore, Warwick in the first public-private partnership for tourism.

The realtor's report said that inventory supply in the rental market has declined by around 35 to 45 percent over the high of late 2008 and early 2009, with prices adjusting in the third quarter of 2008 and now levelling off.

Meanwhile the average price of all real estate transactions stayed steady at $950,000 for 2009 to date compared to $1 million for the first half of 2008, while single family homes were slightly up at about $1.46 million from $1.4 million over the respective periods. But the average price of condos was more in line with the figure of $742,000 for 2004.

The newsletter said that Coldwell Banker had 295 active listings, with an annual average number of sales transactions Island-wide over the past five years standing at 553 and the current inventory representing just over six months supply.

First time buyers looking for 95 to 100 percent financing also received a boost with condos making up 60 percent of the listings, banks still lending up to $1 million to qualified purchasers and 36 percent of the inventory currently in this price bracket.

Elsewhere, based on the company's records, in the rental market, the average price for a one-bedroom property was $2,215; $3,650 for a two-bedroom; and $5,650 for a three-bedroom.

"The current economic climate that the world is experiencing has impacted Bermuda in a number of ways, leading many to question where we are heading," read the newsletter.

"In conclusion, consumers continue to purchase real estate in Bermuda, but at perhaps a slower pace as there are more choices. Prices have come down in various sectors of the market which is encouraging for those looking to own a piece of the rock. Overpricing your property is not an option if you wish to sell in this market as buyers are well-educated, banks are being conservative with appraisals and there is lots of competition for most properties. However, ultimately, everything will sell at the correct price."