Charleston SC Housing Market Latest Trends April 28th 2025 In March, Charleston SC existing home sales fell 5.9% to a seasonally adjusted annual rate of 4.02 million units, the slowest pace since the 2009 financial crisis. This decline is attributed to high mortgage rates and record-high home prices, with the median existing-home price reaching $403,700—a record high for March. The luxury segment of neighborhoods like South of Broad, The Old Village, and Kiawah Island saw moderate increases in sales for homes over $3 million, indicating that higher-end properties remain in demand. However, homes are staying on the market longer, averaging 36 days, reflecting buyer hesitancy, I contend uncertainty with tariffs and economic shifts being the biggest factor. On a year-over-year basis, sales were down 2.4%, with all major regions experiencing monthly declines. Factors Influencing the Market 1. Elevated Mortgage Rates: The average rate for a 30-year mortgage has risen to 6.9%, discouraging potential buyers and reducing refinancing activity. With so many current owners having mortgages in the 3s & 4s, unless forced to sell those owners are hanging onto their homes reluctant to make a move. 2. Economic Uncertainty: Volatile stock markets and policy actions, including tariffs, have spooked prospective homebuyers, leading to increased caution and withdrawal from the market. 3. Affordability Challenges: Despite a slight increase in inventory, affordability remains a significant barrier, especially for first-time buyers. Generically speaking from a national perspective Sales declines are observed across all regions: Northeast (-4%), Midwest (-1%), South (-1.6%), and West (-2.6%). According to CNBC, sales fell despite a sharp increase in available listings. At the end of March, there were 1.33 million units for sale, an increase of nearly 20% from March 2024. In the Charleston SC metro region of Charleston, Berkeley, and Dorchester counties at the current sales pace, that is equivalent to a 4-month supply, which is still on the lean side. A 6-month supply is considered a balanced market between buyer and seller. Future Expectations Looking ahead, the housing market may continue to face challenges: Mortgage Rates: Rates are expected to remain elevated, potentially averaging 6.5% early in the year and dropping slightly by the end of 2025. Which as the one time owner of a very successful mortgage company in South Carolina, I can anticipate buyers to want to continue to hold off as long as they can, hoping for a rate drop. Inventory Levels: While inventory has seen slight increases, it remains below the level needed for a balanced market, contributing to ongoing affordability issues. While we have needed a market corrections for years to bring prices to more affordable levels, increases in inventory are beginning to creep up. The Charleston SC housing market is currently characterized by a slowdown in sales, high mortgage rates, and affordability challenges. While certain segments, like luxury homes in Charleston, show resilience, the overall market faces headwinds that may persist through 2025. Potential buyers and sellers should stay informed and consider these factors when making real estate decisions.