Charleston, South Carolina Mortgage Demand Wanes

Home sales in the Charleston housing market fell by almost 11 percent last month, while the inventory of residential listings climbed by 72 percent compared to February 2006, offering further evidence of a buyer’s market.

In all, the number of residential sales, including condominiums, dropped to 881 for February, according to the latest figures from the Charleston Trident Association of Realtors.

Year to date, transaction volume is off 17 percent to 1,734 sales, the group said Monday.

The median home price, meanwhile, has risen slightly through last month, up about 4 percent to $209,009. That’s despite the fact that there were 7,381 existing residences listed for sale as of Feb. 28, or nearly 3,100 more than in February 2006.

Some of the steam began to seep out of the housing market about a year ago, after a lengthy run-up. On a year-to-year basis, sales volume has been on the decline ever since, while prices have edged up modestly.

While the slowdown has made the business more competitive, local agents have said the market is more balanced and healthier than it was in 2005, when homes that went on the block in desirable locations were getting snapped up by South Carolina mortgage borrowers within hours or even minutes of being listed.

Unfortunately for sellers, that’s no longer the case. Last month, homes sat on the market for 97 days on average before they sold, up from 60 days in the same period last year, the association said.

“It’s a great time for buyers to enter the market,” said David Kent, president of the association. “Terms are more favorable for them than they were in the boom of 2005.”

The spring is typically the busiest time of year for home sales. As mortgage rates remain low and sellers come down on their prices, now is the best time to jump in.

SOURCE: The Post & Courier