By Mike Fitts
mfitts@scbiznews.com
Published Jan. 26, 2009

Year-end numbers confirm what most in the housing market already could feel: 2008 saw sales drop steeply. But some already see signs of a revival in 2009.

The number of transactions statewide dropped 24% from 2007 to 2008, according to the S.C. Association of Realtors. Last year included 46,914 sales, the lowest number of transactions since the peak of 72,811 in 2003.

The drop was felt statewide: Sales were down 19.6% in the greater Greenville area, 20.6% in metro Columbia and 31.2% in the Charleston area.

The state is trying to absorb an oversupply of housing, and construction has been cut back, S.C. Realtors Association CEO Nick Kremydas said in a statement.

“As builders cut back in the short term — though very painful for the homebuilding industry — the housing market will improve,” he said.

Median prices also declined statewide, but at a less steep pace of 3.5%. That overall number, however, conceals disparities in market prices. Columbia’s median price slid 1.7%, while the Charleston area’s dropped 4%, Beaufort’s fell 8.8%, and prices dropped 11.7% along the Grand Strand. The Greenville area actually showed a 2.4% increase in prices.

Homes spent an average of 5% longer on the market in 2008, with a 26.6% increase in Charleston pacing the state.

Low interest rates have started to prompt new inquiries with real estate agents, but that has not yet translated into a bump in sales statewide, Kremydas said.

Mortgage rates, near historic lows, have “got to be a motivating factor,” said Chip Kreps, executive director of the Central Carolina Realtors Association. He also noted that local homebuilders have adapted to the market, featuring smaller properties and lots.

Some national numbers confirm an uptick in December. Existing home sales rose 6.5% in the month, the National Association of Realtors reported Monday.

Nationwide, sales were down 13.1% for 2008, while median prices were down 9.3%, the association reported.

Consumers would be unwise to try to time the exact bottom of the market. Good buys are abundant right now, Kreps said.