Home sales up, but prices lower

March historically signals the beginning of the home-buying season and, if it's any indication of the year ahead, it means good news for the Charleston area.

More than 800 houses changed hands last month, marking a 19 percent growth in sales volume year over year, according to preliminary numbers released Monday by the Charleston Trident Association of Realtors. That said, the median home price for the region fell about 4 percent to just below $177,000.

Last year's spring season came with the extra incentive of a federal tax credit, a temporary deal-sweetener that drove extra business to the real estate market. Rob Woodul, the local association's president, said the continued success in 2011 eventually should translate to an increase in the prices fetched for local homes, too.

"The fact that we are seeing this volume of sales again this year is very encouraging and certainly an indicator of a stabilizing market," Woodul said.

Berkeley County made the greatest stride, year over year, with 29 percent sales growth from 2010, the association found, plus a 1 percent increase in price paid.

Dorchester County showed a 16 percent sales growth and a 4 percent price increase, while Charleston climbed 15 percent in sales but dropped about 10 percent in price year over year.

Woodul attributed the price drop in Charleston County to a glut of distressed properties, including foreclosures, short sales and bank-owned real estate.

As for the bump in Berkeley County, Woodul said: "I think it's coming down to affordability. The pricing there is just incredible."

Jim Hamilton, an agent with Pratt and Co. Re/Max Pro Realty, considers Berkeley County one of his target markets.

He said the area suffered the recession's toll with bank-owned homes, but it also boasts lower costs and stable tax rates.

"There's quite a bit of new construction available in Berkeley County, and it's being offered at an affordable price point," Hamilton said.

In addition to the Charleston area's year-over-year growth, March showed a nearly 50 percent sales increase and an 8 percent price increase over February, according to the association's data. Newly revised figures for February show 584 sales at a median price of $163,882.

The local housing market is still awash in inventory: There were more than 8,600 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of March 31.