Charleston’s real estate market has always had its own rhythm, influenced by a mix of local charm, strong job growth, and national economic trends. As we move through the second half of 2025, it’s worth taking a closer look at where we’ve been and where we might be heading next.
A Look Back Before Looking Ahead
The past two years have been marked by rising interest rates and a more cautious pace in sales after the frenzy of 2020–2022. Even with that shift, Charleston has remained a market in demand thanks to our coastal lifestyle, thriving culinary scene, and expanding industries like tech, healthcare, and manufacturing. While some buyers took a step back due to affordability concerns, inventory never truly surged — and that’s kept home values stable.
What We’re Watching Now
Several key factors will shape the next chapter:
- Interest Rates: National economists are signaling a potential gradual easing of rates into 2026. A half-point drop could re-energize sidelined buyers, especially first-time homeowners and those looking to upsize.
- Inventory Levels: New construction is still moving at a steady pace in areas like Summerville, West Ashley, and Johns Island. However, supply remains tight compared to historic norms, which means sellers may still hold the advantage in many neighborhoods.
- Migration Trends: Charleston continues to attract newcomers from the Northeast, Midwest, and West Coast. The draw of warmer weather, cultural richness, and lifestyle pace isn’t slowing down.
Our Forecast
If rates ease as expected, we could see a more competitive environment by spring 2026, particularly in price ranges under $500,000. Luxury properties should also see renewed interest as buyers gain confidence. Sellers who list before competition ramps up may find this fall and winter an opportune time, while buyers could benefit from acting now before demand accelerates.
Charleston’s market has always been resilient because it’s more than just real estate — it’s about community, history, and a way of life that people fall in love with. No matter what the numbers say, that underlying demand remains strong.
The Kauffman Group has navigated every kind of market Charleston has seen, from booms to slowdowns. Our deep roots in the community and decades of experience help our clients move confidently, no matter which direction the market is heading next.
