By GENEA NOEL

Freeport News Reporter

Although the real estate industry of Grand Bahama has felt the 'negative effects' of a declining economy, real estate agents on the island are very optimistic and insist the market is not stagnant, but slowly and steadily moving forward.

The Freeport News spoke exclusively with local realtors who confirmed that the number of new home or condo sales and re-sales is down approximately 20 percent as people around the world are more cautious about real estate investments.

They agreed that fewer people are rushing to the market to sell their homes because of the financial hardships on the island and banks are offering more repossessed properties at this time.

Lanelle Phillips, who owns a local real estate company, said that it is definitely a 'buyer's market' as there is greater supply than demand with most buyers and investors looking for high-end beach and canal front properties.

"The market in the $1million and over range is still strong and the only thing preventing sales in this area continues to be a lack of viable inventory."

Phillips added that the wealthy are still wealthy and 50 foot boats are still pulling into Port on Grand Bahama, even with the high price of fuel costs.

With the U.S. real estate market in serious decline, Phillips said that the British pound is very strong and has attracted European investors to the island which helped to offset the lack of U.S. buyers.

"We are wary on how long this may sustain us, as these European markets are starting to become reactive to the economy internationally," said Phillips.

Donna Jones, a realtor at H.G Christie, feels the industry has suffered and the homes that are being offered for sale are not attractive to local buyers.

She added that most persons owe more than the property is worth and the majority of our local people Bahamians are not in a position to qualify for these homes because of the island's financial condition over the last few years.

However, she said that there is still a large clientele of second home/vacation home buyers for this area.

Realtor James Sarles of Coldwell Banker explained that savvy investors know that real estate markets are cyclical and this would be the ideal time to make good deals.

If this move is made, Sarles said that agents and companies would be prepared for when the worldwide market goes up again, and great investments would have been made.

He added that prices in Freeport have not dramatically declined, but sellers who really want to sell have become more realistic in their prices. They are also accepting reasonable offers for their properties to sell on the market.

Sarles said that it is all about time and sellers have to be patient and wait for the best price or sell when a reasonable price is offered.

The realtors do advise and encourage Bahamians to own a home as they say, " if you can afford to pay rent you can mortgage a home."

Jones said that home ownership not only gives you pride, stability and security, but it is a verifiable solid investment that requires persons to live within their means.

"Do not over extend yourself, as we are finding that the biggest problem in our local market is that our buyers want homes they cannot afford, overextending themselves and falling into unnecessary debt," said Jones.

Both Jones and Sarles advise shoppers to take their time and shop around with banks and insurance companies for the best deals available, adding that if buyers have steady jobs and cash for the deposit they can be considered.

The realtors are certain that our market is stronger than the U.S. because we are not experiencing the sub prime crisis and have not experienced a massive decline. With the market at a slow and steady pace they are confident that the industry will stay strong in the upcoming years.