Charleston Real Estate Update : What Growing Inventory Means for You

The Charleston Housing Market Has Shifted. Here’s What That Really Means

After years of low inventory, multiple offers, fast appreciation, and ultra low interest rates, the market has changed. And if you have not noticed yet, you are not alone. Many homeowners only realize it once they start thinking about selling.

Right now, the shift is very real.

Active listings are now over 1,700 and approaching 1,800. That is a 9% month over month increase, which is significant for such a short window of time. Inventory is rising, buyer behavior is changing, and pricing strategy matters more than it has in years.

Why This Market Feels So Different

Not all areas are moving in the same direction. Some markets are seeing prices soften, while others are still climbing quickly. This market is highly location specific and driven by several factors.

Barrier islands are a good example. Many homes there are second homes. When the economy feels strong, buyers are more willing to make those purchases. When uncertainty rises, demand slows. That is exactly what is happening now.

On top of that, many barrier island areas have reduced Airbnb permits. This matters because:

• Owners who relied on short term rental income can no longer cash flow
• Homes bought as investments are now being listed for sale
• Fewer buyers are interested if rental income is restricted

That combination has pushed more homes onto the market with fewer buyers competing for them.

Where the Market Is Still Strong

If you look at areas around the 526 corridor and outward toward I-95, demand remains strong. These are primary residence markets.

• People are still relocating here for work and lifestyle
• Local buyers are moving within the area
• Supply remains limited

These markets continue to perform well because they are driven by real housing needs, not discretionary purchases.

Further out in the far outskirts, areas that once exploded in value during the hottest years are now cooling slightly. Most are still holding value. Some are appreciating. A few are seeing small declines.

Across the region, appreciation varies widely:

• 10% to 15% in some areas
• 0% to 7% in others
• Declines in select locations

This is why understanding your specific neighborhood matters more than broad headlines.

Sales Volume, Rates, and Affordability

Home sales are currently slightly behind 2013 levels year to date. That is notable considering how much the population has grown since then.

Interest rates are another factor. Today, rates sit around 6% to 7%. Just a few years ago, buyers were closer to 3% to 5%. That change alone has pushed affordability lower.

Insurance costs have also climbed. While Charleston has avoided major storms, insurance pricing is affected nationwide when carriers pay large claims elsewhere. Many homeowners are seeing premiums rise, which adds to monthly costs.

Despite all of this, inventory is still relatively low.

In most areas, inventory sits between 1 and 4 months. Anything under 5 to 6 months is still considered a seller’s market. That is why prices are still rising in many locations.

The Biggest Mistake Sellers Are Making

Many sellers still believe they can price their home anywhere and it will sell. That is no longer true.

Here is what we are seeing:

• Homes priced correctly sell within 7 days, often at or above asking
• Overpriced homes take 80 plus days to sell
• Those homes often close 5% to 10% below what they could have sold for

The average days on market is now around 70 days. That is not because the market is bad. It is because sellers are overshooting value and chasing the market with price reductions.

Price reductions do not mean the market is declining. Home values in the area are still up about 8% on average. The issue is mispricing, not demand.

What Smart Buyers Are Doing Right Now

Buyers who understand this market are finding opportunity.

They are targeting homes with long days on market and negotiating strong deals. Sellers in that position are often more flexible and willing to accept less than they would have with correct pricing upfront.

We also offer special financing incentives that can help buyers secure rates between 3% and 5%, depending on the home and the buyer’s situation. That can dramatically improve affordability.

New construction is another area of opportunity. Many builders bought large amounts of land and are focused on volume, not maximizing profit on each home.

That means incentives.

In some cases, buyers can save $50,000, $70,000, $80,000, $90,000, even $100,000 on new construction through pricing adjustments and financing incentives. These offers change often and are usually tied to specific homes.

Marketing Matters More Than Ever

Pricing alone is not enough. Many agents still rely on the same basic plan:

• Put the home in the MLS
• Put a sign in the yard
• Hope it sells

That approach fails far too often. Today, nearly 60% of homes on the market do not sell.

Success now requires a combined pricing and marketing strategy. Exposure matters. Lead generation matters. Follow up matters.

Our goal is simple. Put your home in front of every serious buyer in the market. We use the same marketing principles Fortune 500 companies use to build brand awareness. When applied to a home, it creates more demand, more showings, and more offers.

That is how homes sell faster and for more money.

Bottom Line

This is a confusing market. Headlines make it sound scary. The reality is more balanced.

It is a good time to buy.
It is a good time to sell.

That combination is rare. But success depends on understanding your specific market, pricing correctly, and using the right marketing strategy.

If you have questions or want details for your specific area, reach out anytime. You can find us at davefriedmanteam.com, click the links below or call us at (843) 972 3833.