S.C. Real Estate News

By Heidi Cenac
March 9, 2008

Even the stable Upstate housing market is feeling the effects of a looming recession.

As the number of houses on the market starts to outpace the number of buyers, Anderson developer Baylis Maxwell is postponing plans for a 166-lot subdivision and community store at Midway Road, Harriet Circle and Crestview Road.

“It’s just not the right time to start a subdivision,” Mr. Maxwell said.

When he looks at competitors’ developments, some are fine and others are “dead in the water.” Realtors tell him the biggest reason for the slowdown is that retirees and people in other markets can’t sell the houses they are in to buy houses here.

Anderson County’s absorption rate — the real estate market’s ability to sell off the houses for sale — dropped slightly from 16 in January to 14.7 February. But a 14.7-month supply of houses still is pretty high, said Tom Carr, a Realtor at the Elizabeth Gray-Carr Team in Anderson.

“We’ve got to get that down by either selling more homes or having fewer homes on the market,” Mr. Carr said.

Transactions on the Western Upstate Multiple Listing Service — a database of houses for sale in Anderson, Oconee and Pickens counties — were down 16 percent in January compared to the same month last year.

In Anderson County, 93 homes were sold in January this year compared with 113 during January 2007.

Last month brought more of the same. According to data pulled from the multiple listing service, 113 homes were sold in February 2003 compared with 133 in February 2007.

The good news for homebuyers in Anderson is that home values have remained relatively stable. A fourth quarter Zillow Home Value Report, which includes all homes in the Anderson area, not just those listed for sale, showed that home values in Anderson County bucked the nation’s depreciation trend.

Anderson County’s “Zindex” for 2007 — the median estimate of the market value homes in a certain area — was $102,408, up 5.6 percent year over year.

“Anderson has enjoyed a very stable real estate market without large fluctuations in values,” said Dave Chamblee, broker in charge at Anderson Area Properties.

And some areas, including west Anderson County and the Hartwell Lake waterfront, actually saw more homes sold in February this year than last year.

The National Association of Realtors has started running ads on Upstate radio and television stations telling consumers why now is the best time to buy. And according to Mr. Chamblee, that’s not just propaganda.

The combination of strong inventory and low interest rates means buyers can find houses that really match what they want in a home, he said.

Just don’t expect homeowners to give their investment away.

Mr. Carr’s office has seen a few offers from buyers trying to get a house for well below the asking price, and the offers haven’t been accepted. With the sales-to-list ratio above 95 percent, sellers don’t feel they have to give it away, he said.

Builders and Realtors are hoping the housing market will pick up in the spring when building typically is busiest.

Mr. Maxwell said two of his subdivisions, Austin Oaks and Ashland Oaks are seeing increased interest from buyers. Mr. Carr said his office is still on pace with new listings and has seen steady demand for showings.

“Buyers are still out there,” he said.

March 8, 2008

ANDERSON COUNTY — The plans to renovate the old Kroger building on River Street to house Anderson County administrative offices are moving forward — once again.

The Anderson County Council in 2006 approved issuing a $7.3 million bond to pay for expansion of county offices into the former grocery store, upgrades to the current courthouse and preliminary work the expansion of the Anderson County jail.

Anderson County Administrator Joey Preston said renovations on the project could reach $5.5 million, but he hopes they will come in lower.

“The project’s budget can vary depending on what we get back in bids,” Mr. Preston said. “It could cost $4.5 million. But I wanted to estimate high on the front end.”

How much of the $7.3 million will go to the annex, the courthouse, and the jail is not available because the county is waiting on renovation bids on the Kroger building, Mr. Preston said. Some of the upgrades to the courthouse will include changes to security and the building’s sound system.

The old Kroger store is about 47,000 square feet and sits on 6.25 acres. After renovations it will house the county treasurer, auditor, assessor, register of deeds, building and codes, mailroom, and building and grounds offices — basically all non-court related offices now located in the Anderson County Courthouse.

County officials are sending drawings to contractor for the first renovation stage. That first stage will include removal of walls and other preparations, Mr. Preston said. Construction on the site should begin in June or July and should be done by May 2009, he said.

When the council approved the purchase of the old store for $1.3 million, it created a stir among residents. Some approved of the deal. Others did not.

Opponents to the project argued that $1.3 million purchase price for the building was too much for that side of town, that the area, located on Anderson’s southeast side, was unsafe and that the property’s Realtor, Marshall Carithers, was making too much money on the deal.

Arguments were refuted by county officials, saying that other empty grocery stores on the S.C. 28 Bypass and U.S. 29 South, are priced between $1.4 million and $4 million. Then, Anderson Police Chief Martin Brown said just five incidents were reported within a two-block radius of the old store in 2005.

And according to the county’s contract with Mr. Carithers, he made the standard 6 percent commission on the sale.

County Council member Cindy Wilson was the dissenting vote on the matter. And she said she is still opposed to it.

“The concerns that I had primarily dealt with the deal, with the purchase price,” Ms. Wilson said. She said she is still worried about how much the entire project will cost.

But Mr. Preston said the county has no choice but to expand county offices because the current offices are too crowded.

“We are a growing county right now,” he said. “This is going to be an anchor for south Anderson. I think once you see this project completed, I think you are going to see a transition on River Street like you saw on McDuffie Street with the new library.”

Anderson County resident John Schinnagel, who is often vocal on local politics, said the renovations should help the area. He lives off Centerville Road and often travels the S.C. 28 Bypass, across town from the old Kroger store. It is dotted with several empty grocery stores.

“The city looks bad when you ride down the streets and see empty store fronts,” Mr. Schinnagel said. “I agree with the renovation. I don’t think $5 million is a lot to spend.”