Larger counties lead real estate recovery in S.C.

By Molly Parker
mparker@scbiznews.com

CHARLESTON -- The state’s population centers in the Lowcountry, Midlands and Upstate are leading the way out of the construction slump, according to a recent University of South Carolina study.

The construction industry’s recovery remains tangled in pinched lending practices, high inventory numbers and bargain-priced foreclosed upon homes. But the Moore School of Business’s housing and construction report says that seven counties are inching toward better times.

Among its findings:

• The recession is most likely over.

• South Carolina’s high unemployment rate is likely to persist into 2010, but that double-digit number is not an indication of a worsening economic situation. A reduction in the unemployment count typically lags the initial stages of a recovery.

• Nationally, foreclosure rates are expected to hold steady along with high unemployment figures.

• South Carolina is better positioned than most states, having experienced housing price appreciation through 2009, an increase in permit activity and only a slight increase in foreclosure rates.

• Banks are not expected to significantly increase the number of loans they are making as they are forced to set aside reserves to absorb expected commercial real estate loan loses. This will make future loans of all kinds harder to acquire. The result will be a slow recovery for the home-building industry even though the housing market is improving.

Georgetown County also ranked among the counties with the highest increases in construction activity and the lowest unemployment. Also in that category is Lexington County in central South Carolina and Pickens and Greenville counties in the Upstate.

Researcher Joseph Von Nessen conducted the University of South Carolina study in a partnership with the South Carolina Association of Realtors and the Home Builders Association of South Carolina.

Reach Molly Parker at 843-849-3144.

Published Dec. 2, 2009