The Housing Bubble

The Orange County Register reports from California. “Orange County’s 122-month streak of rising home prices is over. The decade-long run ended last month when the median price of an Orange County home fell to $620,000, a decline of $2,250 from the median in February 2006, DataQuick reported Monday.”

“‘It looks like it’s hitting its new low level, and it’s going to stay there awhile,’ real estate consultant Walter Hahn said. Hahn attributed the market’s sales slump and stagnating prices to the disappearance of speculators and marginal, first-time buyers using unconventional mortgages.”

“‘That’s gone. It’s just gone,’ he said of those buyers. ‘I’m not sure we’ll ever get up to those sales rates again.’”

“Overall sales were down as well: A total of 2,449 homes changed hands in February, down 16.4 percent from February 2006. It was the 17th consecutive month in which sales declined from the year before, a slump that began in October 2005, DataQuick figures show. The new-home category had the steepest decline in sales, down 36 percent.”

“Orange County had 12,558 homes for sale as of Thursday, according to (broker) Steven Thomas in Aliso Viejo. The inventory of homes for sale has risen steadily since late January, he reported.”

The Union Tribune. “DataQuick analyst Andrew LePage said the real estate market can be thought of as a big oil tanker that takes a long time to change course. ‘I think we’re in a turn and it’s not clear which way we’re coming out of it,’ LePage said.”

“LePage pointed to some sobering statistics. The number of default notices rose to 1,268 last month, up from 499 in February 2006, while foreclosure sales skyrocketed from 40 to 383 over the same period, landing just shy of the all-time record set in October 1996 of 389.”

“For both October 1996 and last month, foreclosures represented 13 percent of total sales. DataQuick’s monthly sales counts do not include foreclosure activity, LePage said.”

The North County Times. “For years now, North County residents have been wondering how high home prices could climb. Were we seeing a housing bubble? As the real estate market cools off, it’s becoming apparent that our sky-high housing prices are due in part to a credit bubble. And that bubble has started to pop.”

“Foreclosures in San Diego County nearly tripled in 2006, to 13,246, from 4,541 in 2005, according to RealtyTrac. In North County, the company reports, hundreds of properties are in default and heading to foreclosure. In Escondido, 385 properties are in default and 63 are set to be sold at auction. In Oceanside, the figures are 490 properties in default, with 72 going to auction.”

“What’s startling about many of these pending foreclosures is how many involve loans taken out within the last two years, during the subprime surge.”

“Apparently, the sky was the limit when it came to lending standards for loans small and large. Many of the loans in default were in the $400,000-$700,000 range. But one is for $1.7 million and another for $1.2 million. Before it began to tumble, the subprime market was enjoying a penthouse view.”

The LA Times. “In some parts of the state, including the Central Valley, the Inland Empire and San Diego, foreclosures have gone from rare to plentiful in a little more than a year. Real estate appraisers say home values are beginning to be affected.”

“George Hatch, a San Diego appraiser, said he surveyed a group of his colleagues last week. Almost all of them reported that they were running across distressed sales or foreclosures.”

“‘There is a flip side to exuberance, which is that every party has its hangover,’ said Hatch, a 22-year veteran of the business. ‘When your house loses $100,000 in value, that will make you sick all right.’”

“Ray and Ruby Hayes of Yorba Linda said the couple refinanced their home with a sub-prime lender in the spring to get cash to help them make ends meet. ‘We had bad credit but were told that in six months we could refinance and get a better loan with a lower interest,’ he said. But when they tried to refinance, Hayes said, the lender told them they were not eligible for better terms.”

“The Hayeses are now months behind in their payments. ‘Things just spiraled out of control,’ he said.”

“Not everyone is sold on downtown. Christina Yu and Christopher Camargo, renters in Long Beach, visited about a dozen condo and loft projects to learn firsthand what downtown has to offer and were not entirely impressed.”

“‘It wasn’t that long ago that the alleys were filled with derelicts and drug addicts,’ said Camargo. But ‘if I’m going to pay $700,000 for a place, I think it should have a view of the ocean, not someone else’s living room.’”

“The outlook seems hazy. Tighter lending standards and slower appreciation will keep many would-be buyers on the sidelines. Downtown broker Perabo says he’s worried because fewer first-time buyers will be able to qualify now.”

“‘The days of 100% financing are over,’ he said, adding that about 20% to 30% of the first-time buyers he meets with would be unable to buy without improving their credit standing and coming up with a down payment.”

The Desert Sun. “The disclosure by Irvine-based New Century Financial Corp that its bank lenders were pulling funding didn’t come as a shock to some mortgage lenders and bankers in the Coachella Valley.”

“‘The (adjustable-rate mortgage) program was never really designed as a mainstream program,’ said said Jim McPhail, a mortgage finance specialist in Palm Desert. ‘It has come around, and it’s now biting them in the butt.’”

“Home buyers initially may have been able to get more home through such ‘designer’ loan programs, but the long-term impact was pretty easy to predict, said Bill Powers, president of Pacific Western Bank. ‘Whenever you do those types of loans, somebody has to pay the piper some day,’ Powers said.”

“It’s becoming obvious that mortgage lenders will have to be more careful about sizing up loans that people can really qualify for, said Frank Montiforte, loan officer La Quinta. ‘I like that word ‘tightening up’ - it’s the right thing to do,’ Montiforte said.”

The Daily Bulletin. “The California Building Industry Association released a report Monday that showed sales of new homes were down significantly from last year, with California off 18.6 percent since last January and the Inland Empire off 22.3 percent.”

“‘A lot of builders have been very aggressive in offering incentives,’ said economist Jack Kyser. Kyser cited several examples in which houses and condominiums have slashed prices $50,000 or even $100,000 recently.”

“‘The market clearly is still looking for a bottom,’ he said. ‘I don’t think we’ve found it yet.’”

The Merced Sun Star. “John Pinto thought his days of playing Mr. Fix It were over when he sold his 27-year-old house and moved into a brand new subdivision. But months later he discovered what he says was the first of many problems in his new home.”

“Since then, Pinto said, every time he turns around the house needs another repair. Now Pinto is one of 59 homeowners suing developer Ranchwood Homes over what they claim is shoddy construction at the subdivision in Gustine.”

“‘I’m not a sue-happy guy,’ Pinto said. ‘I would like to see Ranchwood get their act together and start building some better quality homes. I would hope that they teach their workers better so that no one else ends up with a lemon. These guys are making good money; there’s no excuse for shoddy workmanship.’”

“The first problem he noticed after buying the 2,545 square-foot house for $420,000 was a crooked second-floor window sill. Then when he wanted to install a sliding door around his bathtub, the worker doing the job showed him that the floor sloped almost one inch from one end to the other.”

“‘The Egyptians built the pyramids over hundreds of acres and they were only off by about a quarter-inch, and these guys couldn’t put in a six-foot floor that’s not off an inch,’ Pinto said.”

The Patriot News reports from Pennsylvania. “State and federal regulators are looking at ways to cut down on the risky loans in an effort to curb foreclosure rates. Pennsylvania has not escaped the national trend. Foreclosure filings in the state shot up 34 percent, from 28,650 in 2005 to 38,333 in 2006, according to RealtyTrac.”

“Cumberland County had 218 foreclosures in 2005 and that number jumped 53 percent, to 334, in 2006. Chris Gulotta, executive director of the Cumberland County Housing, said the county numbers might be a result of the higher median prices of houses in Cumberland County.”

“People with more expensive homes in Cumberland County generally have larger mortgages, he said. ‘I think the foreclosure issue, it’s a combination of the effect of the adjustable-rate mortgage and relatively serious increases in interest rates,’ he said.”

The Journal Sentinel. “Hard times and bad choices have landed thousands of Wisconsinites in deep trouble on their home mortgages. Foreclosure filings, which rocketed 34% in the state last year, jumped another 27% in this year’s first two months, reported ForeclosuresWI.”

“‘We have credible lenders and good laws. What we need is much better education,’ said Bill Malkasian, president of Wisconsin Realtors Association.”

“One important lesson that needs reinforcing right now is delayed gratification, said Jim Kopp, past president of Wisconsin Mortgage Bankers Association. ‘Some people say, ‘I want it now and I want it easy.’ But they may not be getting the best deal they could,’ Kopp said.”

“By June, the two men say, their trade groups will have a consumer alert to distribute, ‘in time for the spring selling season,” Malkasian said.”

“Of the 300 to 350 calls a day fielded by Homeownership Preservation Foundation’s consumer hotline - a 600% increase over 2006 - about half involve non-prime loans, VP Dean Caldwell-Tautges said. ‘A lot of the people that are having trouble now are in loans that are not more than a year old,’ Caldwell-Tautges said.”

From KFVS 12 in Illinois. “In recent years, it seems there’s always something new under construction in Marion, Illinois. But can the local building market continue to grow when national trend is the opposite?”

“‘Right at the moment, the outlook is very, very promising,’ said Arthur Mize with the Home Builders Association of Southern Illinois. ‘But we’re all standing on eggshells because this little building bubble that we’ve got going on could collapse.’”

“Some folks who checked out the Spring Home Expo said they’re stuck in limbo; they want to build a new home, but can’t because of a slowing real estate market. ‘We have a house on the market, so we’re like a lot of people we’ve got to sell in order to build,’ said Craig Baumgarten.”

“New homes keep going up as Williamson County grows in leaps and bounds, which makes contractors optimistic that the local building bubble will stay intact. ‘Marion has been a boom town for the past few years, and hopefully the next few years,’ said Mize.”

The Daily Nonpareil from Iowa. “Donna McFadden, director of the home ownership program with Family Housing Advisory Services, said foreclosures are becoming more of a concern as many adjustable-rate mortgages have adjusted upward. ‘We probably see at least two a week,’ she said. ‘A year ago it could have been maybe, three or four a month.’”

“Scott Simpson of Western Horizons Mortgage Group in Council Bluffs said during a recent week his office saw six people who could have been approved for a home loan six months ago, but no longer were eligible. ‘The person that was a tougher credit, or a credit risk, so to speak…those people are not going to be able to get a home loan,’ he said.”

“‘It’s going to get real ugly, I’m afraid,’ Simpson said. ‘I don’t think people understand what’s going to happen.’”

“Byron Menke, president of the Southwest Iowa Association of Realtors, said the situation has been a topic of discussion and some tightening was expected on institutions that issue higher-risk loans. Many of the problems will come from those individuals who entered ‘creative financing’ agreements with 100 percent financing, he said.”

“‘They just walked away because there’s nothing invested on their part,’ Menke said.”

From USA Today. “A 10% drop in home sales in the Minneapolis/St. Paul area at the start of the year was actually good news. The area’s housing market looked even worse at the end of 2006, according to the Minnesota Association of Realtors.”

“The Twin Cities area enjoyed double-digit price appreciation from 2000 to 2002, after which price increases slowed to the single digits.”

“Those who expect to sell need to keep their homes well-maintained. ‘People aren’t willing to spend that much money anymore for properties that need work,’ notes Chris Galler, senior vice president of the association.”

“Real estate agents are concerned, though, about the many homes in foreclosure, as well as investor-owned homes that are sitting vacant and for sale. Not only are homes in foreclosure often in disrepair, which depresses property prices, they’re also typically sold below market prices.”

“‘We are working with a group to try to track the problem,’ Galler says.”

The Citizen Patriot from Michigan. “It’s not news Michigan finds itself in a one-state recession. But what is shocking for many families is that the place they call home could become a stone around their financial necks as they try to stay afloat during rough economic times.”

“‘For many families, their house is their largest asset. To see it eroded in value after having seen only modest increases in the last year or two causes real concern,’ said economist Dana Johnson.”

“It’s been more than 22 years since Michigan saw a three-month quarter with a drop in home prices, according to the U.S. Department of Housing and Urban Development. The last time was the third quarter of 1984, the tail end of the 1980s recession.”

“In 2006, it happened in both the third and the fourth quarters.”

“Analysts say the reason for this is clear. ‘Housing prices are just a reflection of what’s happening in the rest of the economy,’ said Marcia Howard, director of a Washington-based research group.”

“Some economists say families should steer clear of putting all their savings into their home. Look no further than the recent spate of property owners challenging their spring property tax assessments to see the downside of a real estate-only investment plan.”

“‘They really thought this would be a way they could save for retirement or emergencies,’ said David Littmann, an economist with a free-market policy group in Midland. ‘It’s become a negative investment at this point. It shouldn’t even be called an investment now.’”

Some housing bubble news from Wall Street. “Accredited Home Lenders Holding Co., a mortgage company for people with bad credit, needs to raise cash after paying more than $190 million demanded by backers this year. The stock lost almost half its value. ‘It’s clear now that liquidity is an issue’ for Accredited, said analyst Bose George. The wave of margin calls from backers ’shows that lenders are starting to get very concerned.’”

“Accredited said the company has violated terms of lending agreements that require specified ‘levels of net income.’ Accredited, which earlier this year persuaded creditors to waive the requirement, is now seeking extensions.”

From MarketWatch. ” Accredited was considered one of the more solid subprime mortgage specialists because it took a more conservative approach to underwriting its loans and accounting for them. About two-thirds of its margin calls have come since Feb. 15. Accredited also said it is pursuing savings, including more job cuts.”

From Reuters. “Subprime lender Novastar Financial Inc. said on its Web site Monday that its nonconforming loan production volume in February fell 26 percent from the year-ago period. But even those results were stronger than many investors had expected.”

“‘The fact that they made loans in February is good,’ said an investment analyst who asked not to be identified.”

“ECC Capital Corporation today announced that on March 12, 2007 it was notified by NYSE Regulation, Inc. that trading in ECC Capital common stock will be suspended, and the NYSE will take action to delist ECC Capital’s common stock, prior to market opening on Thursday, March 15, 2007. ECC Capital is currently structured to qualify as a REIT by managing a portfolio of nonconforming loans.”

“Subprime mortgage lender New Century Financial Corp.’s problems deepened Tuesday as the New York Stock Exchange took steps to delist its shares.”

“New Century said on Tuesday it underestimated its debt to Credit Suisse by $500 million, the latest snafu for a company under investigation by U.S. securities regulators and facing delisting from the New York Stock Exchange.”

“New Century said in a regulatory filing that it has received a grand jury subpoena requesting documents. The subpoena is part of a previously announced criminal probe into trading in its securities and accounting losses by the federal prosecutor in Los Angeles.”

“The probes are the latest sign that regulators and prosecutors are taking an interest in the widening crisis in a once-booming industry built around providing mortgages to borrowers with weak credit.”

“Also in the filing, Irvine, California-based New Century said the Pacific Regional Office of the Securities and Exchange Commission notified the company by letter that it was conducting a preliminary investigation and seeking some documents.”

The New York Post. “Bear Stearns is being blasted by a leading independent research shop that says the Wall Street titan’s robust purchase of subprime mortgages has helped fuel the sector’s meltdown.”

“Describing the firm’s buying activity as an example of ‘the fee foxes guarding the mortgage hen house,’ CreditSights, an independent firm specializing in corporate cash flow and balance sheet analysis, slammed Bear for having subprime loans that have experienced extensive payment troubles and defaults, and ’stood out in terms of weaker performance.’”

“‘Bear, and a lot of other dealers - including Lehman Brothers and Morgan Stanley - really aided and abetted this [subprime] industry collapse,’ said David Hendler, the lead CreditSights analyst on the study. ‘They did nothing to ensure that the loans they were buying were kosher. There was no ‘good guy’ here, no voice of reason or advocate for conservative standards.’”

From Bloomberg. “Bond investors rattled by mounting losses in subprime U.S. mortgages say trouble is brewing in collateralized debt obligations.”

“‘When you talk about no documentation loans, you can’t have any less of a standard than that,’ said Martin Fridson, CEO of research firm FridsonVision LLC. The lenders lower their standards and say ‘Well, we can put them into CDOs.’ Like that’s somehow burying that it’s toxic waste.’”

“Investors ‘need to worry a good bit’ about subprime delinquencies spilling over into the CDO market, said Mark Adelson, head of structured finance research at Nomura Securities Inc.. ‘The scenario where the BBBs all blow up is a reasonably possible scenario,’ Adelson said.”

The Wall Street Journal. “Ruthie Hillery was struggling to make the $952 monthly mortgage payment for her three-bedroom home in Pittsburg, Calif., last summer when a mortgage broker called. The broker persuaded Ms. Hillery to refinance into a ’senior citizen’s’ loan from New Century that she thought would eliminate the need to make any payments for several years, according to her lawyer.”

“Instead, the $336,000 adjustable-rate loan started out with payments of $2,200 a month, more than double her income. In December, Ms. Hillery received notice that New Century intended to foreclose on the property. Then, earlier this month, after a formal demand by the lawyer, New Century agreed to refund all its fees and cancel the loan once Ms. Hillery gets refinancing elsewhere.”

“The lawyer, Alan Ramos, says the loan never should have been made. ‘You have a loan application where the income section is blank,’ Mr. Ramos says. ‘How does it even get past the first person who looks at it?’”

“Delinquencies among subprime mortgage borrowers hit a four-year high in the fourth quarter, while home buyers who got loans with low down payments and government backing fell behind at the highest rate ever.”

“The Mortgage Bankers Association said 13.33 percent of subprime borrowers, with poor or limited credit histories, were behind on payments in the quarter, the highest rate since the third quarter of 2002.”

“‘Although the U.S. economy and the job market remain solid, the housing market continued to decelerate in the fourth quarter,’ Doug Duncan, the association’s chief economist, said in the statement.”

“‘The delinquencies and defaults have started to soar,’ said Nicolas Retsinas, director of Housing Studies at Harvard University in Cambridge, Massachusetts. ‘A lot of these lenders started to make loans and lost track of some of the fundamentals.’”

“‘The delinquencies are going up, and the rate of the increase doesn’t appear to have slowed down,’ said Grant Bailey, an analyst at Fitch Ratings. Delinquencies on subprime loans have doubled in the past 12 months, he said. ‘So if you graph that, it’s a pretty steep line.’”

National Mortgage News. “The Federal Bureau of Investigation’s estimate that mortgage fraud costs the lending business $1.2 billion a year is off the mark by more than $3 billion, according to a fraud analyst speaking at the Midwinter Conference in Park City, Utah.”

“HSBC Holdings soon will begin unloading some of its on-balance-sheet subprime holdings. Scratch-and-dent investors tell us billions may come to auction.”

“Meanwhile, one veteran subprime executive told us he is moving into hard-money ‘equity lending,’ giving up on subprime for now. He said one secondary market buyer (a Wall Street firm) asked his shop to buy back a loan he sold to them 18 months ago. The executive, requesting anonymity, said, ‘Right now there is no bid in the market place’ for subprime.”

From Origination News. “Mortgage companies scaled back their payrolls by 5,900 full-time employees in January, as the decline in subprime originations and rising defaults took a toll on wholesalers and mortgage brokers.Since October, employment in the mortgage industry has declined for three consecutive months, and 15,500 employees have lost their jobs.”

From CNN Money. “Foreclosed properties will add supply to a housing market that already has too much.’[National] inventory is 20 percent higher than last year, vacancy rates have soared and prices are down about 3 percent,’ says says economist Dean Baker. ‘Now, with the tightening of credit, I don’t see how prices don’t fall another 5, 6 or 7 percent.’”

“The tightening of credit could take as many as one million buyers out of the market, says Baker, citing Bear Stearns research. ‘Even if you cut that in half, say to 400,000 or 500,000, that’s huge.’”

“Economist Mark Zandiis also concerned. ‘I think the subprime problems will take housing activity to a whole other level,’ he says. Zandi is projecting a doubling of subprime defaults this year to 800,000. ‘Those homes will go on the market at a discount and will weigh on the market,’ he says.”

“‘Banks have become much more cautious. Lenders are tightening, not just subprimes, but Alt-As (not quite prime) loans and primes as well,’ says Ellen Bitton, founder of the Park Avenue Mortgage Group.”

“A recovery in the nation’s housing market is ‘likely’ this year, though problems in the subprime lending marketplace and unusual weather have posed challenges in assessing conditions, according to a Tuesday forecast from the National Association of Realtors.”

“Total sales this year will be ‘fairly close’ to the prior year because ‘last year started high and ended low,’ said David Lereah, NAR’s chief economist, in a statement.”

“‘Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next,’ Lereah said. ‘Even so, these problems are likely to be contained and not spill over into the prime mortgage market.’”

The Denver Post. “Low home-price appreciation and tighter credit standards could make it harder for consumers to pull equity out of their homes, said Lou Barnes, a Boulder mortgage banker who keeps a close tab on the credit markets.”

“New Century’s demise is likely to spill over into tougher restrictions for homebuyers with less than stellar credit, big losses for investors in mortgage- backed securities, and fewer options for consumers accustomed to spending down their home equity. ‘The spillover may be underway. We may already be soaking wet,’ said Barnes.”

The Orlando Sentinel reports from Florida. “The slumping residential real-estate market in the Orlando area is still searching for a bottom. The number of homes and condominiums sold by Orlando Regional Realtor Association members in February fell by nearly 39 percent from the same month a year ago to 1,386.”

“At the same time, listings by local Realtors grew again in February, to an all-time high of 22,055. That represented a more than 15-month supply at the recent sales pace, according to the group’s estimate.”

“Orlando Realtor association President Randy Martin said the fact that growth in the local inventory of homes listed for sale has slowed is encouraging. Only 789 listings were added in February.”

“But March, April and May are prime sales months, and some industry analysts have said they expect more frustrated sellers will enter the market, if they can get an agent to handle the listing. The local Realtors’ monthly numbers do not include for-sale-by-owner listings.”

“Annette Rodriguez recently bought a condominium unit in Kissimmee for $175,000, getting more space and a better deal than she thought she would when she began her search about three months ago.”

“‘It’s a good price. I was going for a 2-2 and got a 3-2 for that price,’ she said, snagging a third bedroom in addition to two bathrooms. Also, the sale price was $35,000 below the original asking price of $210,000, and the seller agreed to cover more than $5,000 in closing costs.”

“Realtors, trying to find bright spots in the ongoing slump, point to the unprecedented selection of homes and condos and the fact that sellers increasingly have to accept reasonable offers rather than hold out for unrealistic figures.”

“Agents are struggling to make a sale, at any price, and more are leaving the field every day, said Sergio Saenz, a Kissimmee broker-agent.”

“Local condo sales slipped 52 percent in February from a year earlier. Sales of duplexes, town homes and villas fell 42 percent.”

“Home sales in the broader Metro Orlando market, Osceola and Lake in addition to Orange and Seminole counties, fell roughly in line with the core market, down 37.2 percent from February 2006, to 1,725 properties.”

“Seminole County sales year-over-year were off 42.5 percent, while Osceola saw a 46 percent slide. Orange County held up best, with a 32.8 percent decrease, followed by Lake County with a 34.9 percent decline.”

“‘A couple of my Realtors are looking to find full-time jobs right now. They have to pay the bills,’ said Saenz. Saenz said many people hunting for homes can’t qualify for a loan because prices have outstripped income growth.”

“He said the word many Realtors use these days to describe the market is ‘frustrating.’”

The Bradenton Herald. “A Palmetto developer is offering to sell two undeveloped Manatee County subdivisions with a combined 380 homes. DL Homes is offering to sell Fox Crossing, a 96-unit, single-family subdivision near 27th Street East, for $3.6 million.”

“The developer is also hoping to sell Meadow Terrace and Meadow Terrace West, a combined 284 townhomes near U.S. 301 and Interstate 75, for $9.9 million.”

“‘Nothing’s typical right now because of the way the market conditions are,’ said Charlie Donohue, a consultant for DL Homes. ‘It was our intention to sell these once they were approved but the market was terrible and it still is.’”

“Edie Ousley, a spokeswoman for the Florida Home Builders Association, said it wasn’t surprising that DL Homes was trying to sell subdivisions that aren’t yet built. ‘It’s not unusual that this is happening,’ Ousley said. ‘It’s most likely a reflection of the market conditions that we’re experiencing in Florida.’”

“Donohue said DL Homes is in good financial condition and the attempt to pre-sell the Fox Crossing and Meadow Terrace subdivisions is no reflection on the company’s future business expectations.”

“‘Right now we have over 800 lots approved that are in the pipeline,’ Donohue said. ‘We did 78 homes last year.’”

The News Press. “Last year, Florida lawmakers could pass the largest school-construction budget increase in state history thanks to a hurricane-spawned construction boom. Those days have faded fast.” “Florida economists projected that the state’s economic slowdown will cost state government $956 million between now and the end of next year.”

“The dip stems mostly from plummeting sales-tax collections and documentary taxes on real estate sales, both tied to a down housing market.”

“‘It’s been over 30 years since we’ve had negative growth,’ said Amy Baker, with the Legislature’s Office of Economic and Demographic Research.”

The Post & Courier from South Carolina. “Homes sales in the Charleston region fell by almost 11 percent last month, while the inventory of residential listings climbed by 72 percent compared to February 2006, offering further evidence of a buyer’s market.”

“In all, the number of residential sales, including condominiums, dropped to 881 for February, according to the latest figures from the Charleston Trident Association of Realtors. Year to date, transaction volume is off 17 percent to 1,734 sales, the group said Monday.”

“Local agents have said the market is more balanced and healthier than it was in 2005, when homes that went on the block in desirable locations were getting snapped up within hours or even minutes of being listed.”

“‘It’s a great time for buyers to enter the market,’” said David Kent, president of the association. ‘Terms are more favorable for them than they were in the boom of 2005.’”

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