By Katy Stech, The Post and Courier, Charleston, S.C.
Dec. 11--First, the bad news.
Charleston-area home sales plunged a dramatic 46 percent last month compared to the same month last year, marking the steepest year-over-year slide since the local housing slump began.
Only 435 homes sold during November, a figure so low that the Charleston Trident Association of Realtors, which tallies the figures, couldn't find a lower monthly sales number in its database, which dates to 2003.
But the good news is that the sales drop came with a slide in home prices, which means that Charleston real estate has become relatively more affordable.
The median price of homes sold last month fell 7 percent to $185,503, the lowest monthly level since April 2005.
Home prices in that range were typical during 2004 and 2005, but the housing boom that followed pushed prices well beyond the $200,000 threshold.
Figures released Wednesday by the Realtors group show that the bulk of homes sold last month were priced between $100,000 and $249,000. Only 48 homes priced above $400,000 changed hands.
"If you're renting or a newly married couple or you've relocated, clearly this is a better time to buy a house than last year," said Frank Hefner, a research economist at the College of Charleston. "But will prices keep dropping? That's anyone's guess."
The slide in prices has led some buyers to question whether they'll ultimately overpay for their property, he said. Additionally, the global financial crisis has further crippled consumer confidence, shaken job security and restricted the flow of home financing to buyers with questionable credit history.
"We can still say 'Thank goodness we're not Las Vegas' -- we'll always be able to say that -- but we're not insulated just because we're not doing as badly as other places," Hefner said.
While the dismal home sales tally isn't encouraging for the local real estate industry, some agents said they're seeing buyers take advantage of the falling prices.
David Wertan of Re/Max Advanced Realty recently helped an Upstate couple buy a small Johns Island condominium as a second home at a dramatically reduced price.
"It sold for $95,000 and it's gorgeous," he said. "Those opportunities just haven't been there in the last four to five years."
Wertan said he doesn't expect a rush back into real estate, not even from investors or first-time buyers. Instead, the recovery will be gradual, he said.
His Upstate clients, for example, have already shown their condo to a friend who is now thinking of buying a neighboring unit.
Wednesday's numbers don't reflect buyers who were encouraged by the recent drop in interest rates. Some local real estate agents said they've seen an increase in showings and buyer interest since the rates began falling last week.
The number of homes for sale in the Charleston area remains at record levels. As of Wednesday, a total of 10,462 homes were available, which is more than double the amount that local real estate experts say is healthy for the region.
"You've got a lot of foreclosures coming on the market," said Jana Bantz, an agent with Summerville-based Prudential Southern Coast Real Estate. "That's contributed to it, and there's quite a number of homes that need to be reduced (in price). If those prices came down, I think we'd see a drop in inventory."
HOME NUMBERS:
--$202,702: Median price year-to-date, down 3 percent from first 11 months of 2007. The median price for November alone was $185,503.
--8,199: Number of homes that have been sold year-to-date. That's down 24 percent from the same period of 2007.
--8,503: Number of single-family homes on the market
--1,825: Number of condominiums or co-op units on the market
--105: Average days on the market for house that sold in November
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