Home sales up for area: 6% December increase helps boost optimism

The local real estate market gained some to close out 2010, and local industry experts hope that the gentle rise in sales will continue throughout the new year.

A new report from the Charleston Trident Association of Realtors shows that 657 homes sold throughout the region in December, a 6 percent increase compared with the period in 2009.

That's also up from the 611 homes that changed hands at a median in November, according to newly revised figures.

December is typically a busy closing month for the industry because some buyers try to finish up real estate transactions by the year's end for various reasons.

But local real estate professionals cited reasons to be optimistic looking forward.

A year ago, for example, buyers were able to take advantage of an $8,000 federal tax credit that since has expired.

"If we can be in the same place without federal help, that bodes well for the strength of the market," said Dave Sansom, broker-in-charge of Carolina One Real Estate's Mount Pleasant office on Coleman Boulevard. "We're right on track."

Sansom described the pool of recent buyers as a mixed bag -- from first-time purchasers to those looking at luxury-level deals.

"The unifying theme, if I had to pick one, is that they're a value buyer and they're buying on opportunity," he said. "They're recognizing that our price has corrected significantly over time, and they're worried about missing the bottom."

The typical home sold during December cost $182,000, which is 7 percent cheaper than the figure a year earlier. November's median price was $192,000.

That still represents an improvement over the start of the decade, despite some earlier indications to the contrary. The median price in 2000 was $140,000, according to the association.

The uncertain job market has kept some market browsers on the fence, while a notable number of existing homeowners refrain from looking because they know they can't sell their properties for an amount that would give them buying power.

The direction of home values will depend largely on foreclosed properties. Some industry analysts foresee a looming wave of distressed properties that could hit the market, sending prices lower.

"People are getting more comfortable with (buying) foreclosures," said Rob Woodul, the Realtors association's new president. "The process is not taking as long, and I think you're going to see investors get back in the market. (They) see this as a way to purchase something, put a renter in it and move on."