Overall, economic growth in the housing industry and in the economy as a whole will continue in the coming months, but it will be slow. Banks dealing with defaults on commercial real estate loans will have difficulty extending new loans to builders and other investors, which will slow the economic growth of these industries. As a lagging economic indicator, unemployment will persist into 2010, and foreclosures and high housing vacancy rates will persist with it. This will lead to increased housing inventory and further reduction in house prices.

Even so, the South Carolina housing market has seen increases in permits since January and only small increases in delinquent mortgages in the past twelve months. These are positive signs and indicate that South Carolina is in a stable position relative to the rest of the nation. House prices continue to hold their value and are, on average, appreciating. There are expectations of growth in the South Carolina housing market, but to be realized, builders must identify their target markets carefully and recognize that the economic recovery will take time.