Home sales up 7 percent

Charleston has finally hit a streak of strong home sales.

But is that attributable to a fundmental recovery? Or is it just a temporary boost from the federal first-time home buyer tax credit that is to expire in about six weeks?

Josh Watts of Coldwell Banker United suspects it's a mix.

"The home-buyer credit has been around long enough that you're starting to see a little bit of a trickle down," Watts said, pointing out that when a first-time buyer purchases a home using the credit, it frees the seller to move up the real estate ladder.

An estimated 1.4 million buyers are expected to take advantage of the tax credit. And while the incentive is to expire after Nov. 30, the pent up demand from homeowners who are waiting for their chance to move isn't expected to subside.

For example, Watts said he is working with several Charleston area newcomers who are renting while they wait for their homes in other states to sell.

"A traditional homeowner that has been forced to be a renter because life brought them to Charleston, as soon as they get the opportunity, they're going to buy," he said.

The region recorded 697 home sales during September, a 7 percent increase compared with the same month last year, according to the latest figures released Tuesday by the Charleston Trident Association of Realtors.

Local subdivisions that showed strong sales activity last month include Drakesborough in Summerville, Brickhope Green in Goose Creek and

Carolina Bay in West Ashley.

At the same time, median sale prices tumbled 10 percent to $174,000, the lowest point since February 2004. The drop could tie to the lower price point sought out by first-time buyers.

Also, some banks are also lowering the asking price on their foreclosed properties while lenders accepted discounted "short sale" offers.

And the region still faces a glut of homes for sale -- the available inventory was 10,679 homes on Tuesday -- which is causing homeowners to lower their asking prices.

Those factors are likely to keep home prices from rising rapidly in the near future, Watts said.

"I think we're going to be stagnant for a while, and people have to be happy about that," he said.

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