Home Sales in Charleston, S.C., Down 15 Percent
Heading into winter, the South Carolina housing market is continuing to cool, and the trend is especially evident in and around Charleston, the latest figures show.
The number homes sold in the tri-county region in November totaled 991, a decline of 15 percent compared to the same month in 2005, according to the Charleston Post & Courier.
For the year to date, local sales are down by nearly 5 percent.
While the activity isn’t off by as much as in other cities, the latest figures reflect the steady decline that the Charleston market has seen since the number of monthly transactions peaked in June 2005 at 1,574.
“The market was overheated,” said William S. Smith, an agent with Hartnett Realty Co. “We’re in a more realistic phase now.”
As a result, South Carolina mortgage activity is cooling and properties are taking longer to sell.
For November, the average number of days that a home stayed on the market climbed to 78 from 52 a year earlier, according to association figures.
Also, appreciation rates have steadied, said Patty Scarafile, CEO of Prudential Carolina Real Estate, the largest residential agency in the region.
In light of the slowdown, real estate agents have to emphasize to owners that homes need to be priced accurately to attract serious buyers.
“The houses that are selling today are competitively priced,” Scarafile said. “The public’s mindset has to go through an adjustment.”
The good news for sellers is that the latest figures show that overall, high home prices have yet to go south. November’s median home price was $204,624, up more than 8 percent year-to-date.
Though the slowdown in sales volume suggests that prices might fall, Smith said sellers still are optimistic about property values, and affordable mortgage loans should also help buoy demand.
He also noted that many are holding out, with hopes of getting lucky.
“Real estate tends to be an emotional and psychological issue for buyers, and sellers as well, so I don’t think it observes the dispassionate rules of economics,” he said.
Scarafile said the November sales figures didn’t come as a shock to anyone who pays attention to housing market trends. Her firm expected third-quarter sales to be the slowest and activity is now picking up.
“There are a lot of busy people out there right now,” Scarafile said. “Our listings are being shown, and we believe that will result in strong first-quarter closings.”