As we move into 2025, the Charleston real estate market continues to be shaped by economic factors, with stable growth expected despite some challenges. Consumer confidence remains below pre-pandemic levels, but spending has stayed steady, particularly among higher-income households. Wage growth outpaces inflation, providing a positive outlook for consumer purchasing power and reducing the likelihood of a recession. South Carolina’s economy is performing well, transitioning from the pandemic-driven economic bubble to more sustainable growth. Home prices have remained strong, growing at a slower pace due to low inventory and median price growth has normalized to pre-pandemic levels. Despite softened demand, limited housing supply continues to push prices up, and while inventory is gradually improving, it’s still not enough to fully meet demand.
South Carolina’s population growth and job expansion are key drivers of ongoing housing demand, ensuring the stability of the real estate market. With South Carolina ranked fourth in the U.S. for population growth in 2024, housing demand remains robust, particularly in Charleston. Despite recent increases in unemployment, the state’s job market remains strong, with moderate job growth expected moving forward. While inflation remains a concern, with rates hovering around 3%, economic indicators suggest a reduced risk of a recession. However, inflation pressures may keep mortgage rates elevated, limiting affordability and sales activity. Overall, 2025 is expected to bring positive yet modest growth in housing sales, with strong demand bolstered by job and population growth but tempered by higher mortgage rates.