As we move into May 2025, the Charleston real estate market continues to navigate a landscape shaped by rising interest rates, cautious buyer behavior, and a modest uptick in inventory. After several years of rapid price appreciation and fierce competition, the market is showing signs of normalization—offering both challenges and opportunities for buyers, sellers, and investors alike.
Market Overview
The median home price in THE TRI-COUNTY AREA has remained relatively stable compared to earlier in the year, with modest month-over-month gains. Prices vary significantly by neighborhood—Downtown Charleston, DANIEL ISLAND ,Mount Pleasant remain high-demand areas with average prices well over $1M, while areas like West Ashley, North Charleston, SUMMERVILLE AND GOOSE CREEK offer more accessible options.
Buyer & Seller Sentiment
Buyers are adjusting to higher borrowing costs, which has tempered some of the urgency that defined the post-pandemic boom. However, with inflation slowing and talk of rate cuts on the horizon, some buyers are cautiously re-entering the market in anticipation of improved affordability later in the year.
Sellers, meanwhile, are recognizing the need to price realistically. Overpriced homes are sitting on the market longer, prompting price adjustments and more room for negotiation.
New Construction & Development
New construction has slowed significantly due to higher interest rates and increased costs for labor and materials. Permitting for new builds has dropped compared to the same period last year, particularly for single-family homes.
However, multifamily developments and infill projects are still active in areas like Daniel Island Wando, West Ashley and Summerville aimed at easing housing pressure and expanding rental availability.
Rental Market Snapshot
The rental market in Charleston has remained strong, with slight increases in monthly rents across most submarkets. Downtown Charleston and Mt. Pleasant continue to command premium prices, while areas like Hanahan and Goose Creek remain popular for more affordable rental options.
Looking Ahead: What to Expect This Summer
Interest Rates: While still elevated, rates are projected to dip slightly in the second half of the year. This could increase buyer activity but may also keep home prices firm.
Inventory Growth: Modest gains in inventory should continue, offering more choices for buyers and softening upward pressure on prices.
Affordability: The Tri-County area remains a competitive market, but slightly slower price growth and more negotiation power may benefit first-time buyers and move-up buyers.
Final Thoughts
The Tri-County housing market in May 2025 reflects a broader national trend toward normalization. While it’s no longer the red-hot seller’s market of 2021–2022, demand remains strong due to the area's lifestyle appeal, job growth, and coastal charm.
Whether you're considering buying, selling, or investing, staying informed and working with a knowledgeable local real estate professional will be key to making smart moves in today’s evolving market.
