Let's dive right into the Charleston housing market. It's a hot topic, and if you're looking to buy or sell, you need the real scoop. Okay, l Here it is: The Charleston housing market is experiencing a period of moderate growth with increased inventory, slightly rising prices, and a market that's still leaning in favor of sellers, although not as strongly as before.
I know, that's a lot to take in. Let's break it down.
Current Charleston Housing Market Trends
The Charleston real estate market is known for its historic homes, stunning waterfront properties, and vibrant neighborhoods. With a range of options from condos to single-family homes, there's something for everyone in this dynamic market. The Charleston housing market has been experiencing significant growth and competitiveness in recent years.
Home Sales
Home sales in Charleston are a bit of a mixed bag right now. According to the Charleston Trident Association of REALTORS, on one hand, we saw pending sales increase by 2.4% and closed sales climb by 1.1% in 2024. That's a positive sign that the market is still active and people are still moving in or around. But it's not just a straight line upwards either. The year had its ups and downs, with a dip in sales during the spring due to rising mortgage rates, followed by a surge in the fall when rates dipped a bit. It seems like buyers are very sensitive to changes in mortgage rates, and this will likely continue to impact sales this year too.
Here’s a quick look:
- Pending Sales: 17,796 (up 2.4% from the previous year)
- Closed Sales: 17,437 (up 1.1% from the previous year)
Home Prices
Now, let's talk about the numbers that everyone's really interested in: home prices. The overall median sales price in the Charleston area went up by 4.1% in 2024, hitting $416,586. That's a pretty significant jump, and it shows that the Charleston area is still a very desirable place to live. Single-family homes saw a 4.6% increase in their prices, while townhouses and condos experienced a 1.4% rise.
Here’s a table highlighting these price changes:
| Property Type | Median Sales Price Change (Year-over-Year) |
|---|---|
| All Properties | +4.1% |
| Single Family Homes | +4.6% |
| Townhouse/Condo Homes | +1.4% |
It's important to note that while prices are still going up, the rate of increase has slowed compared to the frenzy we saw a couple of years ago. This means that we're not seeing the extreme price surges anymore, which, in my opinion, is a good thing for the long-term health of the market.
Are Home Prices Dropping?
This is a question I get asked all the time. While the growth in home prices has slowed, they are not dropping across the board. We are still seeing an increase in prices, but it is a more measured and gradual increase, which is honestly a more stable type of market. While there may be certain neighborhoods or property types where we might see slight price adjustments, the general trend is still upward, not downward. The data from Charleston Trident Association of Realtors® supports this notion. So, to answer the question directly: No, home prices are not dropping.
Comparison with Current National Median Price
When we look at the national picture, the median home price is about $407,500, with a 6% year-over-year increase (as of December 2024). This means that Charleston’s median price of $416,586 is currently a little higher than the national median, but our year-over-year increase of 4.1% is lower than the national 6%. What this means is that the Charleston market is a bit more expensive but, it's also cooling at a more rapid pace than the national average.
Housing Supply
A key factor influencing home prices is supply, and thankfully we've seen some improvement here. Compared to 2023, the number of homes for sale went up by 16.7%. That's a big jump and it gives buyers a lot more to choose from than they've had in recent years. New listings also increased by 10.7%, meaning that more and more homeowners are deciding to put their houses on the market.
Here's what we’re looking at:
- Active Listings: Up 16.7% compared to 2023
- New Listings: Up 10.7% compared to 2023
The increased inventory will, in my opinion, play an essential part in helping stabilize the market as we move through 2025. A larger inventory often means less competition and more room for negotiation for buyers.
Is It a Buyer's or Seller's Housing Market?
This is the million-dollar question, isn't it? Right now, I'd say we're in a bit of a transition. While it’s still leaning toward a seller’s market, it is less so than it was a year or two ago.
Here’s my thought process:
- Increased inventory means buyers have more options and aren’t as desperate.
- Prices are still increasing, indicating demand is present and sellers are not exactly giving away their properties.
- Homes are staying on the market longer: Days on Market increased to 40 days from 35 in 2023. This suggests a slowdown in the pace at which homes are selling, and is another indicator that the scales are becoming more balanced.
Overall, my opinion is that it's a more balanced market than we’ve seen recently. Sellers are not holding all the cards, and buyers have a bit more negotiating power.
Market Trends
Looking at specific trends, there are some interesting things happening in different areas of Charleston:
- Areas with the highest median price increases: Downtown Charleston, Edisto Area, and Sullivan's Island are seeing some of the biggest price jumps.
- Areas with the largest increase in new listings: Edisto Area, Upper Charleston Peninsula, and Folly Beach are seeing a lot more homes come onto the market.
- New construction: New construction homes are selling for a very high percentage of their original list price 98%, which reflects continued interest in brand-new homes.
Here’s a quick rundown of some of the top performing areas in the Charleston area:
- Top 5 Areas – Change in Median Sales Price from 2023:
- Edisto Area +32.8%
- Downtown Charleston +26.6%
- Folly Beach +24.8%
- Sullivan’s Island +20.8%
- Daniel Island + 18.5%
- Top 5 Areas – Change in Homes for Sale from 2023:
- Hollywood / Ravenel / Meggett Area +48.6%
- Sullivan’s Island +43.6%
- Upper Charleston Peninsula +35.4%
- Hanahan + 35.3%
- Lower Mount Pleasant + 24.3%
It's always good to keep an eye on these variations because different areas can behave differently.
Impact of High Mortgage Rates
Mortgage rates are currently hovering around 7% (as of February 2025), and these high rates are having a significant impact on the market. High borrowing costs are making it tougher for many first-time homebuyers to enter the market, and they're also making it more expensive for existing homeowners to trade up. I think this is a major factor that led to the slowdown in sales during Spring 2024.
The fluctuations in mortgage rates throughout the year will continue to be a key determinant of how active the market will be in 2025, as mentioned by economists. When rates drop, we're likely to see buyers jump back in, and this also applies to sellers. When the rates start climbing, things tend to slow down. It's a give and take that will keep affecting the Charleston real estate market.
My Two Cents
As someone who's been following the Charleston market for quite a while now, here’s my honest take:
- It's not a runaway train anymore: We're not seeing the same kind of crazy growth that we did a couple of years back. That, for me, signals a healthier, more sustainable market.
- Be informed and be patient: Whether you're buying or selling, do your homework. Understand the local dynamics, know your budget, and be patient. Don't jump in just because the hype makes it seem like you have to.
- Be aware of fluctuating mortgage rates: This will impact affordability.
It's all about playing it smart and getting the best possible outcome for your specific situation.
To wrap it up, the current Charleston housing market trends are showing moderate price increases, greater inventory, and a slightly more balanced market. While mortgage rates are playing a significant role in cooling the demand, the Charleston area continues to be a desirable location. It's a market where both buyers and sellers need to be strategic, patient, and informed to make the best decisions.
Charleston Housing Market Predictions 2025-2026
According to the latest forecast, home prices in Charleston, SC, are expected to see a moderate increase throughout 2025. So no, a crash isn't what experts are predicting right now! Let's dive into the details and see what this could mean for you.
Diving Deeper into the Numbers
I've been keeping a close eye on the real estate trends, and Zillow's latest data gives us some interesting insights. They've looked into the Charleston housing market and have given growth predictions up to December 2025. Let me break it down for you in a way that's easy to understand:
- Starting Point: All these predictions are based on the baseline data from December 31st, 2024.
- Short-Term Forecast (January 2025): For January 31st, 2025, they predict a 0.2% increase in home values. It's not huge, but it's a sign of the market nudging upwards.
- Next Quarter (End of March 2025): By the end of March 2025, the forecast shows a 1% increase in home prices. This indicates that the growth is beginning to pick up a bit.
- End of Year (December 2025): The most significant prediction comes for the end of 2025. By then, Zillow forecasts a total 4.2% growth in home values in the Charleston area. This clearly shows an upward trend over the year.
So, while we aren't looking at any sort of dramatic spike, a steady increase is what's expected in the Charleston real estate market.
How Does Charleston Compare To Other SC Markets?
It's always useful to see how a specific market stacks up against others in the same state. Here’s a look at how Charleston compares to other major areas in South Carolina, also based on Zillow’s latest forecast:
| Area | Growth by Jan 2025 | Growth by Mar 2025 | Growth by Dec 2025 |
|---|---|---|---|
| Charleston, SC | 0.2% | 1% | 4.2% |
| Greenville, SC | 0.3% | 1.2% | 3.9% |
| Columbia, SC | 0.4% | 1.4% | 4.1% |
| Myrtle Beach, SC | -0.1% | -0.1% | 2.8% |
| Spartanburg, SC | 0.4% | 1.5% | 4.7% |
| Hilton Head Island, SC | 0.2% | 1% | 5.2% |
From this, it's clear that Charleston's projected growth is in line with much of the state. Places like Spartanburg and Hilton Head are predicted to grow slightly more by end of year, but overall the trend is similar, showing a healthy appreciation in home values for most major markets in South Carolina.
Will Home Prices Drop in Charleston? A 2026 Glimpse
Based on the current projections and understanding of market dynamics, I don’t foresee any major drop in Charleston home prices. While there can always be unforeseen circumstances that could impact the market, the predictions suggest continued growth rather than a sudden crash.
Looking into 2026 is a bit trickier, as no exact figures are yet available. However, considering the general trend and the demand for housing in the Charleston area, it's reasonable to expect that the growth may continue in 2026, albeit at a similar or slightly slower rate than what is forecast for 2025. It's unlikely that the Charleston housing market will drastically shift in the next couple of years.
Final Thoughts
For anyone considering buying or selling in Charleston, these predictions offer some helpful information. We are not looking at a sudden crash, instead a moderate appreciation in home prices seems very likely for 2025. As with any market, it's essential to stay informed and work with a local real estate professional who understands the intricacies of the Charleston housing market.
Should You Invest in the Charleston Real Estate Market in 2025?
The Charleston SC real estate market is often overlooked for “hotter” markets like cities in Florida and Texas. Yet there are a number of factors that make the Charleston housing market an excellent place for investors to look at buying properties. Charleston, South Carolina, is a coastal city with a rich history, vibrant culture, and thriving economy. The city's real estate market has seen steady growth in recent years, making it an attractive option for real estate investors. Here are some key factors to consider when deciding whether to invest in Charleston real estate.
Population & Demographics
Charleston's population has grown by more than 14% in the past decade, and it is projected to continue to increase in the coming years. The city's demographics are also attractive for real estate investment, with a relatively young and highly educated population. This demographic shift has led to an increased demand for housing, making the Charleston real estate market an excellent investment opportunity.
CHARLESTON SC MSA COUNTY POPULATION ESTIMATE, 2021 (Source: U.S. Census Bureau, 2022)
- Berkeley County: 236,701
- Charleston County: 413,024
- Dorchester County: 163,327
- Charleston Metro Area: 813,052
Charleston Has a Massive Military & Student Market
Any military base provides a large, mobile population that overwhelmingly rents. Joint Base Charleston combined the Air Force and Naval bases located in Charleston. The joint base is home to a number of military training programs like the nuclear power school and Coast Guard maritime law enforcement academy, as well. There is more than twenty thousand personnel in all, and nearly all of the rent.
Charleston, South Carolina was founded around 1670. The College of Charleston serves around 11,000 students. Charleston Southern University is a private university located in the city. The Medical University of South Carolina is the only medical school in the area, attracting students from across the region.
Trident Technical College is the local community college. On top of that are the military educational programs. This creates a disproportionately large student market for a city this size. Yet the Charleston housing market is better than that of the average college town since the value of rental real estate here isn’t dependent on the appeal of a particular college.
The Tourist Market Is Big in Charleston
Charleston, once best known for its rich history dating back to the mid-seventeenth century, is quickly gaining recognition as a destination resort that caters to discerning travelers. The city sits on the Atlantic coast, the ocean breezes mediating the warm summer climate and keeping winter’s chill at bay. The mild weather and surf help to explain why around eight million visitors a year pass through the city. If you have a condo or beach house, you can rent it out to tourists at a decent rate. Note that Charleston County’s rules on short-term rentals through sites like AirBnB are more relaxed than that of Charleston proper.
The Booming Job Market in Charleston, SC
Charleston's economy has seen tremendous growth in recent years, with the city's job market booming in particular. The city is home to a diverse range of industries, including healthcare, aerospace, tourism, and manufacturing. Major employers include Boeing, the Medical University of South Carolina, and the College of Charleston. The city's strong economy and job market make it a great place to invest in real estate.
This Is a Low Tax State
South Carolina is a low-tax state, which is a significant advantage for real estate investors. The state has one of the lowest property tax rates in the country, which can help investors maximize their returns. Additionally, the state has no inheritance or estate tax, making it an attractive option for long-term investment.
South Carolina is Landlord Friendly
South Carolina is known for being landlord-friendly, with laws that protect landlords and their property rights. The state has a relatively low tenant protection index, which means landlords have more control over their properties. This can make investing in Charleston real estate less risky than in other markets.
Conclusion
The Charleston housing market is certainly benefiting from a local economy that has gained worldwide attention. The Charleston real estate market contains multiple, sizable renting populations aside from a growing workforce that cannot afford to buy local single-family homes. The strong job market and relatively limited space are driving up rents and home values.
Apart from the Charleston market, you can invest in Raleigh, NC. The Raleigh NC real estate market is landlord friendly, contains several large populations of renters, and has an economic future that ensures long-term growth in housing demand and rents. Owning a piece of Raleigh real estate is a great achievement for many people.
Homeowners in Raleigh continue to see their homes appreciate in value because they are in such high demand. From Millennials moving to the area to retirees living here, Raleigh continues to be a great place for people from all walks of life. Whether you are a Baby Boomer or a Millennial, you will find living in Raleigh is a unique experience. From being a leader in the job market to being a hub for entertainment, it’s pretty clear why many people love to call Raleigh home.
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