The number of condos sold in the City of Hamilton has dropped sharply in the last five years.Figures for 2012 confirm that the number of closed sales in Hamilton has been reduced year over year since 2008, when they spiked.“A major part of the reason that sales have dropped is lack of inventory,” said Kendra Mello, manager of Coldwell Banker Bermuda Realty.She said sales spiked each time a new development was built.“Between 2004 and 2008 approximately 130 new units were placed on the market,” she said. “Since then the market has been reliant on resales. The highest year in terms of overall sales volume was 2008.”The realtor added: “Prior to the downturn in the economy many Bermudians bought city residential units for investment purposes.“More liberal lending policies provided many with the opportunity to purchase a unit and rent to executives and other international business people and returns were significant. Investment purchases have been few in the more recent period as people were nervous about their ability to secure a good tenant. Others expressed a desire to wait to see the results of the recent 2012 election.”However, the realtor said, although resales on city units have been disappointing compared to rental returns, “the value of these units is strong”.The realtor said young professionals who may work longer hours than normal like the convenience of city living. And there is an emerging trend showing more women are now seeking city accommodation.“At another level, a high percentage of executives also tend to prefer city living,” the realtor said. “Extensive travel is a major part of their job so the safety and convenience of locking their door and leaving the Island on short notice is very appealing. Many have families that do not reside in Bermuda and therefore mainly stay in the city during the week and go overseas for the weekends.”The realtor noted that following years of hardly any residential development in Hamilton, the Atlantis in 2004/5 “proved to be somewhat a reawakening for our City”.“This resurgence of city housing was followed in relative short order by two additional residential developments providing modern, contemporary city living. The community ultimately embraced this new form of housing product with the initial demand for occupancy emanating predominantly from international business people resulting in ready-made investments for Bermudian buyers.”A major part of the reason that sales have dropped is lack of inventory. The graph that accompanies this article shows sales spiking each time a new development was built. Between 2004 and 2008 approximately 130 new units were placed on the market. Since then the market has been reliant on resales. The highest year in terms of overall sales volume was 2008 at approximately $27M (not $45M which is a cumulative figure).