As we hit the halfway mark of 2025, Charleston’s housing market continues to evolve—but what’s really moving the needle right now?
Is it rising interest rates? Is growing inventory slowing the market? Or is buyer demand still strong enough to keep things competitive?
If you're watching the real estate market with interest (or planning to make a move soon), understanding what’s actually driving change can help you make smarter, more confident decisions.
Let’s break it down.
Mortgage Rates: Still a Major Influencer
Interest rates have been one of the biggest factors in shaping the real estate landscape over the past two years. In 2025, they continue to play a critical role.
- The average 30-year fixed rate is hovering around 6.75% (sometimes higher depending on the lender and loan type).
- While these aren’t the lowest rates we’ve seen historically, they’re high enough to affect affordability—especially for first-time buyers and move-up buyers relying on financing.
- Many would-be sellers are holding onto their sub-4% mortgage rates and are reluctant to trade them in for a higher payment.
What this means for the local market:
- Buyer budgets have shifted. People are looking at smaller homes, different neighborhoods, or waiting for a better rate.
- Sellers are staying put longer, reducing the number of existing homes hitting the market.
- We’re seeing a rise in creative financing options, like rate buydowns, seller concessions, or ARM loans.
If you're buying: Get pre-approved and explore options with a trusted lender—you may be able to unlock more buying power than you think.
If you're selling: Offering to help with closing costs or interest rate buydowns can make your listing stand out.
Inventory: Slowly Climbing, But Still Tight
Compared to last year, inventory in the Charleston area has increased, but it's far from a buyer’s market.
- Months of supply has climbed to just over 3 months, up from around 2 months this time last year.
- New listings are up, but not drastically—and many are quickly absorbed by motivated buyers.
- Builders are stepping in to fill the gap with new construction, but labor and material costs remain a challenge.
In short, there are more homes available, but supply still hasn’t caught up to demand.
What this means for the local market:
- Buyers have more options than they did during the peak of the frenzy—but homes that are priced right and move-in ready are still going quickly.
- Sellers can’t rely on bidding wars like they used to. Presentation and pricing strategy are more important than ever.
- The luxury and investment segments are seeing the most flexibility, while starter homes remain highly competitive.
Pro tip: If you're a buyer, now’s a good time to act before inventory levels out or rates rise again. If you're a seller, stage and price your home strategically for today’s buyer expectations.
Buyer Demand: Resilient and Redefining the Market
Despite affordability pressures, buyer demand in Charleston remains strong, fueled by:
- In-migration from out of state, especially the Northeast, Midwest, and West Coast.
- People looking for lifestyle upgrades—beaches, walkability, outdoor space, and a slower pace of life.
- Millennials and Gen Zers aging into homeownership, adding pressure to entry-level inventory.
- Remote work flexibility, allowing more people to relocate to places they actually want to live (like the Lowcountry!).
Buyers are simply being more thoughtful, more budget-aware, and more focused on long-term value.
What this means for the local market:
- The market is no longer wild—it’s strategic. The demand is there, but buyers are looking for homes that truly fit.
- Homes that are well-maintained, energy-efficient, or updated are outperforming others.
- Condos and townhomes are growing in popularity as buyers look for affordability in prime locations.
The “wait and see” buyers of 2023 are re-entering the market—many realizing that renting isn’t getting cheaper either.
So, What’s Really Driving the Market in 2025?
It’s a combination of all three:
- Rates are shaping what people can afford.
- Inventory (or the lack of it) is controlling choices.
- Buyer demand is steady and pushing the market forward, even in the face of economic uncertainty.
But here's the key: Charleston’s desirability is still its greatest asset. People want to live here, invest here, and retire here. That demand doesn’t disappear—it just adapts.
What Should You Do Now?
Whether you're buying, selling, or investing, the 2025 Charleston market requires a smart, tailored strategy. This isn’t a time to guess. It’s a time to plan.
