Region's home prices slip

Even as the housing market cooled off, home prices in the Charleston region held up, seeking out modest gains in recent months. Until now.

May home sales data show that the median home price slipped for the first time in recent memory, ending a long run of year-over-year gains.

In May, the median price was $209,945, compared with $212,000 a year ago, down about 1 percent.

Meanwhile, sales volume continued to adjust to the changing environment. The number of homes sold through the Charleston Trident Association of Realtors' Multiple Listing Service fell by 20 percent last month, the third steepest decline since the market turned in February 2006.

In all, 1,176 units changed hands last month, compared with 1,471 in May 2006, the association said Monday. Sales volume for the first five months of the year is off 8 percent, to 5,499 transactions.

"My sense is that we've pretty much leveled out," said Patty Scarafile, chief executive officer of Prudential Carolina Real Estate, the Charleston region's largest residential agency.

Scarafile and others in the industry were skeptical about the price decline, saying it doesn't reflect the entire market. One factor is that less-expensive homes are selling in Berkeley and Dorchester counties, said Wil Riley of Century 21 Properties Plus.

"I think what we're seeing is additional properties coming out further and further," Riley said. "Land is not as expensive in those areas."

Agents also stressed that the long- anticipated dip in the median price, however small, could mean that the market is becoming more affordable for buyers.

"I think that renters or first-time home buyers should absolutely be taking advantage of the current pricing in the market and shopping," said Sandy Stone, owner of Isle of Palms-based Island Realty Inc.

Scarafile of Prudential said the market trends are forcing sellers to list their properties at more competitive prices.

"When you have so many houses on the market, appreciation is not going to increase as rapidly," she said, adding that she hasn't seen homes lose value.

For would-be buyers, there's a lot to choose from. The number of homes up for sale has topped 10,000 for several months now, according to the association's numbers. In April of this year, for example, there were 68 percent more units on the market than in April 2006.

The May declines in both sales and prices are notable in that they came in a month that's typically a strong period for the local real estate business.

When measured year-to-date, prices are 1.5 percent higher than they were for the corresponding five-month period of 2006, thanks to a healthy increase in January.

But in recent months, the gains have slowed. February and April prices were essentially flat year over year, while March prices edged up 1.8 percent. In contrast, median prices for the same months of 2006 rose between 12 percent and 16 percent.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.