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.
Housing Keeps On the Positive Path Great news for those looking to sell. The housing market is still showing signs of growing with no signs of stopping anytime in the near future. This is great news for those who are underwater and facing short sale scenarios or foreclosures. As prices continue to increase and demand grows it will be much easier to get those homes off to buyers without having to take a huge hit on a short sale. Home prices rose a record 12.1% in the year ending in April, the Standard & Poor’s Case-Shiller index showed. According to USAToday.com: Nationwide, 9.7 million, or 19.8% of homeowners with a mortgage, owed more on their homes than they were worth as of March, says market researcher CoreLogic. The number of underwater homeowners has dropped below 10 million for the first time in more than at least three years. Rising home prices, up 12.1% in April year-over-year, have lifted 1.7 million home loan borrowers above water in the past year, the data show. As long as home prices continue to rise it will encourage homeowners that have been struggling to put their homes back on the market. “We still have along way to go;” says Charleston, SC realtor, James Schiller. Based on median asking prices per square foot for all non-foreclosure listings on Trulia through May 2013, it found urban home prices up 11.3% year-over-year vs. 10.2% in the suburbs. “As market conditions improve across most of the country, some metros have moved onto the IMI list while marginal seasonal fluctuations have nudged others off of it,” says NAHB Chief Economist David Crowe. “This is to be expected as the recovery expands. Meanwhile, it’s worth noting that the number of improving markets is now more than three times what it was in June 2012.” While the Case-Shiller index measures prices for leading cities, data from real estate website Trulia shows prices rising nearly everywhere in the U.S., but even faster in cities than in the suburbs. Bottom line is things are moving in the right direction and struggling homeowners that have loans over what the house is worth are shrinking. They need to get with their agents to crunch the numbers and see if they can sell on the positive side.