Home sales dip again

During a time of the year when local home sales typically build month after month, April's activity was a bit of a disappointment.

New data from the Charleston Trident Association of Realtors shows that 518 homes sold last month, a 26 percent decline from April 2008 and 50 homes fewer than the total that changed hands in March.

With the economy in so much flux, it's unclear what the slip in sales means for the local residential real estate market. April is normally a busy month for home sales, and the drop comes at a time when mortgage rates are near historic lows and the federal government is tempting first-time buyers with an $8,000 tax credit.

But national economic indicators recently have shown conflicting results, too, with fluctuations in initial job-loss claims, retail sales figures and the number of new home starts.

"Everything else is going to be very up and down and probably surprising," said Frank Hefner, a research economist for the College of Charleston. "It's going to be a while before we get a trend where people will feel comfortable and say, 'This is the direction of the economy.' "

For the national economic recovery, Hefner said he's waiting for bank stock prices to rebound. But a recovery in the local economy, and particularly within the housing industry, is likely to lag months behind that.

Meanwhile, with fewer buyers looking for homes, sellers are having to lower prices.

The median price of a home sold last month slipped to $181,303, or about 1.9 percent less than March's median price and a tumble from the April 2008 price of $205,000. The College of Charleston Home Value Index, which tracks the value of a home's features over time, estimates that prices fell 5.17 percent last month.

Drake Herrin, a real estate agent with Carolina One Real Estate, said the most common buyers these days are looking for their first homes.

"With that $8,000 first-time homebuyer (tax credit), they are getting off the fence," he said. "It goes away at the end of November, and we don't know if the government is going to extend it."

Most of those buyers are looking for homes that are $250,000 or less, leaving that segment of the market relatively stable, Herrin said.

That's not the case with higher-priced homes, particularly those listed between $250,000 and $749,000.

The combination of sellers seeking to downsize and a lack of financing options for pricier residences has created a glut of inventory. The association's figures show that while 124 homes sold in the $250,000-$749,000 price range last month, nearly 3,900 properties are available.

"There aren't a ton of people out there looking for a high-dollar home," Herrin said.

A total of 10,271 homes were listed for sale as of Monday, according to association data.

The group also pinpointed several neighborhoods where sales activity was particularly strong, including: Wescott Plantation in North Charleston; Brickhope Greens and Coker's Commons in Berkeley County; and Belle Hall, I'On and Rivertowne subdivisions in Mount Pleasant.

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