Contrary to what they describe as the national "media hype," Realtors and home builders say the local economy is relatively steady and not characteristic of all the gloom and doom heard on a daily basis.

G.W. Berry of G.W. Berry Realty and Construction Inc., an Orangeburg home builder, says while the retail market has been sluggish over the past year, the local economy is not to blame. His number of homes built on an annual basis has remained steady between 20 and 25.

"There has been so much hype about real estate prices and houses not selling, but this is not the case in our area," Berry said. "In other areas of the country where they have had high-density areas, they have had a lot of inflation and now they have deflation. That has not happened here."

For the most part, Orangeburg's housing market has been spared any significant damage from the subprime mortgage fallout and skyrocketing inflation rates, Berry said. "Property values here appreciate at a reasonable level."

Orangeburg County Master in Equity records show the county has been averaging about 30 to 35 foreclosures a month, double the number of eight years ago but about steady for the recent period.

Through the middle of February, Orangeburg County had 105 foreclosures in 2008 compared to 97 in 2007 and 95 in 2006 during the same time period.

About 36 current foreclosures were listed in Orangeburg County on the Web site, www.foreclosure.com, through Feb. 16. Of these 36, 25 were listed in the Orangeburg area alone.

The Web site receives its information from foreclosing lenders and government agencies. The same Web site (foreclosure.com) lists six current foreclosures in Bamberg County and seven in Calhoun County, all in St. Matthews.

The South Carolina Realtors Multiple Listing Service statistics for the Southern Midlands Association, which includes T&D Region counties, show home sales and the median price of homes all tailed off in the third and fourth quarters of 2007.

About 576 homes were sold in the SMA last year compared to 632 the year before.

The median price of homes sold fell from $102,000 to $91,000.

So far this year, home sales are down and days on market were up for the month of February from January to 209 from 170 days.

George Corley, ERA Wilder Realty's broker in charge, echoed Berry in blaming many of the problems in the housing slowdown on the media painting a bleak picture, which in turn influences consumer spending.

"The media has done more harm than the housing market has ever done," he said. "Interest rates are real good and yes it is a little slow ... but our community is doing quite well."

Smaller markets that serve first-home buyers typically do not have the investors or speculators as do larger markets. That perhaps has helped Orangeburg sustain itself better than larger markets, Corley said.

Economic stimulus

Fears of a recession amid a national housing slump are among reasons for the national economic stimulus package approved by Congress and President Bush.

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The two-year $168 billion bipartisan package, signed into law Feb. 13, will provide tax rebates to more than 130 million working families, 20 million low-income seniors and 250,000 disabled veterans.

The legislation provides $600 payments for individuals -- $1,200 for couples -- plus $300 for each child under 17. It would begin to phase out eligibility at $75,000 in adjusted gross income for individuals and $150,000 for couples. Workers who can show $3,000 in earned income last year -- not enough to pay taxes -- would be eligible for payments of $300. The bill passed by the Senate also provides for $300 payments to senior citizens and disabled veterans.

The legislation also provides incentives to small businesses in the form of write-offs to help create jobs.

The package will bring an estimated $1.6 billion to South Carolina, with about 1.9 million households expected to receive rebates. The average amount of the rebates is $842.

Checks will be sent out in May.

The intent is to encourage people to spend more money. Congress believes the tax rebates will do just that.

Seen it before

Harold Carroll of Carroll Realty Co. has been in the real estate business going on 32 years this April. He says there is little he has not seen in his many years. The key is to be resilient and patient.

"It has been slow, of course," Carroll said. "We have had slow times before ... when the economy is not going so well. I think it will pick back up."

He said the current slowdown is reminiscent of 1978 when interest rates were as high as 20 percent. A housing slowdown resulted.

"Through the years you will have ups and downs," he said, noting that while he is not a "numbers guy," home sales the last few years and most notably the first six months of 2007 were "real good."

"This summer and fall was slow, but it has picked up some, though still not as much as it should be this time of year," Carroll said. "It might not be as robust as it has been, the last four to five years ... but we will get past it. You have to look to brighter days."

Whether or not these brighter days will come as a result of the economic stimulus package is something Carroll said is to be determined.

"I don't know if it will affect that much," he said. "People will not get much out of it."

Ferse 5&10 store owner Roy Chandler is hoping the stimulus rebates will piggy back on income tax refunds to continue what he says has been a positive sales trend over the last four months.

He says this past month store sales increased by about 16 percent, following a November in which sales were up about 5 percent and a December with 20 percent increases.

Christmas week sales were up 10 percent and week-after-Christmas sales were up 35 percent.

"When the economy gets bad ... it seems like I am at the bottom of the food chain," Chandler said, noting how five-and-dimes as well as variety discount stores prove more attractive when money is tight.

Chandler said the increasing number of dollar stores in the area, such as Dollar General and Family Dollar, put a dent in his sales initially. But the store has been able to recover from that competitive flux.

"It has been good for me," Chandler said. "I hope my bubble does not burst."

Expert view

Dr. Hanas A. Cader, South Carolina State University assistant professor in the department of accounting, agribusiness and economics, says the stimulus package is a move in the right direction.

With the Orangeburg unemployment rate hovering around 10 percent and 21 percent of Orangeburg County households making less than $10,000 a year, Cader said the economic stimulus package will help low-income families who otherwise will not have the money to spend on their basic needs and address day-to-day consumption.

Cader said the jury is out as to how many people will actually spend, save or pay back credit card debts, but he said informal surveys of about 130 of his students revealed an equal division among options.

"How the county will benefit will depend on the inventory or how much people are going to spend on day-to-day consumption," Cader said. "This will clear up some inventory, and so that means generally it will be a gain and ... the economy will be benefited."

Cader said perhaps another local stimulus will be a state tax break during the height of the spending period to further stimulate spending.

"It is a good start if it can be constructive in creating some permanent employment opportunity," Cader said.

Rather than providing individuals a tax break, Cader said he would like to have seen the money go toward the build-up of infrastructure and to support struggling companies with tax incentives to promote competitiveness and job growth.

Cader said business leaders could tap into the county's size and heavy agricultural with a greater focus on agribusiness, particularly with increasing demand for cotton and soybeans. "We don't have much agricultural employment share in the local economy."

Business impact

Orangeburg County Chamber of Commerce President David Coleman said while he has not personally heard from any Orangeburg County small business owners about the economic stimulus, he is certain most will be happy to receive a check from the government.

But Coleman says it remains to be seen if this is the answer to what he terms a definite business slowdown.

"Whether this particular proposal would be of benefit, I do not know," Coleman said, noting that as a layman he has read various business publications and news reports from economists differing on how beneficial the proposal will prove.

Among some of the benefits foreseen in the business sector are allowing firms that buy new equipment this year to write off up to $250,000 of their capital investments in 2008, up from $128,000.

The act also enables companies to immediately claim 50 percent depreciation on personal property -- not real estate -- purchased in 2008 that has a depreciable period of up to 20 years, such as a vehicle. That's on top of regular depreciation.

"That is not very great," Coleman said. "We are going to have to see what interest rates do down the road and the money creating investments or being transferred into investments into our economic capacity. That is important in the long run."

Coleman said a variable remains how much stimulus money will go toward paying off credit card debts.

"I don't know what kind of stimulus that would provide," he said.

T&D Staff Writer Gene Zaleski can be reached at gzaleski@timesanddemocrat.com and 803-533-5551. Comment on this and other stories at www.TheTandD.com.

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