Greenville, NC - A housing slump that has trudged on for more than a year hit low points in August in Pitt County, but David French, president of the Greenville Pitt Association of Realtors, is confident better days are ahead.

The question remains: When?

"Eventually our market is going to return to a sound market," French said Wednesday. "Will it go back to what it was in 2006? I don't know. But I think we will eventually get back to a good, stable market."

August home sales in Pitt County fell 40 percent from the same month last year - 185 total units compared to 306 in 2007. That's the 13th consecutive drop when compared to sales the previous year, dating back to a 7 percent gain in July 2007.

For a while, it looked like 2008 would be a perfect illustration as to why the Pitt market is stronger than many others.

Home sales increased monthly from February through May before dipping 18 percent in June.

The average sales price also dropped for the third consecutive month in August, falling 9 percent from the previous year ($149,418 compared to $163,551). That's the steepest decline since a 12-percent fall in prices in February 2007.

Total sales in August were $27,642,330, down 21 percent from $34,965,844 in July, and 45 percent from $50,046,606 in August 2007.

French points to numerous factors affecting the housing market locally and nationally.

"I think the overall economic situation is a major contributor, fuel prices being a big part of that," French said. "... Tighter credit is having an effect on it, but that may be a good thing. Loose credit is what helped get us where we are today."

French said home sales showed "a little spike" earlier this month after an announcement that the Fed was taking over mortgage giants Freddie Mac and Fannie Mae, "but then within just a few days, gas prices shot up because of the hurricane (Ike on the Gulf Coast).

"It's just been a series of economic issues," he said. "Every time we think we see a little upturn, something comes up. Those people that were ready to climb down off the fence climb right back on it."

According to statistics compiled by the North Carolina Association of Realtors, home sales in North Carolina dropped 31 percent compared to the previous year. Total dollar sales for the month were $1,889,331,869, and the average existing home sales price was down 3 percent to $221,571 compared to Aug. 2007.

Brunswick County (5 percent) and Fayetteville (2 percent) posted the highest year-to-date sales growth. Neuse River had the largest appreciation at 20 percent, followed by Goldsboro (7 percent) and Fayetteville (6 percent.)

The biggest decline among small metropolitan areas in August was Washington/Beaufort County at 55 percent. Rocky Mount saw a 43 percent decline, followed by Brevard at 41 percent, and Goldsboro and Greenville at 40 percent.

French said Pitt County's hope for recovery lies in the jobs and population boost expected with the growth of East Carolina University and the Brody School of Medicine, which includes the East Carolina Heart Institute and a dental school.

"ECU has not said, ‘We're going to put these projects on hold and stop building,'" French said. "These things are still happening, and people are going to be coming to Greenville."

 Recapped Home Sales Facts

August home sales in Pitt County fell 40 percent from the same month last year - 185 total units compared to 306 in 2007.

It is the 13th consecutive drop when compared to sales the previous year, dating back to a 7 percent gain in July 2007.

The average sales price also dropped for the third consecutive month in August, falling 9 percent from the previous year ($149,418 compared to $163,551).

According to statistics compiled by the North Carolina Association of Realtors, home sales in North Carolina dropped 31 percent compared to the previous year.

The biggest decline among small metropolitan areas in August was Washington/Beaufort County at 55 percent. Rocky Mount saw a 43 percent decline.

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