South Carolina Homes - A Buyers Market

South Carolina Homes - A Buyers Market

Home sales post another drop in June

Bubble or no bubble, it's become a buyer's market in the local housing industry.

And while the slowdown carried through the all-important spring season, purchasers may find some good deals if sellers start reducing prices, industry experts said.

Home sales in June slid again to 1,187 transactions, an 18 percent drop compared to same month in 2006, according to the latest figures from Charleston Trident Association of Realtors' Multiple Listing Service.

June home sales peaked in 2005, when 1,574 properties changed hands.

Meanwhile, the median sales price rose 8 percent last month to $224,950 compared to the year-earlier period. That marked a turnaround from a rare slight decline recorded in May.

The region's housing market has been cooling off for more than a year. One reason is that mortgage lenders have become more cautious. But other economic and even political factors also have come into play, said Fudgy Brabham, broker-in-charge of Harbourtowne Real Estate Inc.

"I sense that ... there are a lot of people who are still timid and unsure of where we are, given our international situation, oil and jobs," Brabham said.

At the same time, the number of homes on the market has snowballed to more than 10,500 listings. In 2004 and 2005, there were about 4,000 homes on the market at any given time.

Buyers remain hesitant, industry observers said. The growing supply of homes, combined with the reluctance by many sellers to drop their prices, has kept some potential purchasers from committing to a property.

While the slower market can be agonizing for sellers, it's creating opportunities for homeowners to trade up, Brabham said. First-time buyers have an added advantage: They don't have to worry about selling a home.

"We've seen homes that have sold in areas where, traditionally, they close at $185 per square foot, and current sales are at $162 per square foot," Brabham said. "When those sales become recorded, those will become the new (pricing standards)."

The trend could send a message to sellers that they might want to reconsider their asking prices, he said.

Sellers of existing homes also are contending with new-home builders. Randy Mescher, an agent with Prudential Carolina Real Estate, noted that the competition for entry-level buyers has heated up, especially in the Summerville area.

Builders have been discounting new residences and throwing in various incentives, such as free upgrades, to seal deals, he said.

"They certainly have an advantage over a resale house in that respect," Mescher said.

Source: Katy Stech

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