Bermuda’s real estate market is bouncing back, according to the Island’s biggest real estate firm.

Coldwell Banker said its sales of homes had jumped 44 per cent in the first six months of the year compared to the same period in 2014.

And rental transactions were up 17 per cent over the same time period.

A report from the firm said: “This translates to a busier, more active market even though the dollar volume of sales Island-wide has not shifted significantly.

“These are encouraging signs that the real estate market in Bermuda is showing positive signs of recovery.”

Coldwell Banker added that the commercial market was also showing signs of improvement, with four completed sales in 2015 and five “in the works” — pointing to the best performance in the sector for four years.

The report said that condominiums, more than a third of available inventory, were outselling all other categories.

Single family homes accounted for 28 per cent of sales this year, with the central parishes commanding higher prices.

The firm’s report said: “It’s exciting to see the renewed interest and confidence in real estate with a cautious return to stable prices, multiple offers and in some cases, buyers looking to purchase for investment.”

The report added that sales of land for residential development also appeared to be on the rise.

Coldwell Banker said that around 20 lots sold each year between 2012 and 2013, but that had dropped to eight by last year.

But the firm said its market intelligence indicated that around six lots had sold so far this year.

The firm added: “It’s interesting to note that there are currently ten times that number of undeveloped residential lots on the market.

“This indicates an excess supply of available inventory making it a great time to looking for lots if you are preapproved and looking to build your dream home.”

The report added that there were also more homes in need of renovation coming on to the market.

And it said: “As the real estate market begins to show signs of improvement, prudent buyers and sellers will look for opportunities in the market.

“Making low ball offers — substantially below the asking price — either on rentals or sales can, however, be offensive to vendors and may not be a good idea as demand increases.

“Our market has changed. Landlords and vendors working with well-educated real estate agents know the market and price their property accordingly.

“Residential rentals appear to be following the same trend as the sales market although available data is not as robust.

“Our rental agents report that rental demand for stand-alone cottages and houses in central parishes is outstripping supply and they are looking for new inventory.”