Curious about the 2025 South Carolina real estate market? Discover what to expect and how to navigate the changes ahead.
As we approach the end of 2024, it’s time to look ahead to 2025 and the real estate market in South Carolina, particularly in the Midlands and Upstate regions. Several factors will shape the housing market in the coming year, from interest rates to supply and demand trends. Here’s a breakdown of what to expect.
Current market conditions
The real estate market is heavily influenced by interest rates and supply and demand factors. Here are the key figures for the current market conditions:
Interest rates:
- 30-year fixed mortgage rate is just over 6%.
- In September, rates dipped into the low 5% range.
- Mortgage rates are expected to remain in the low to mid-5% range for 2025.
Inflation:
- Inflation ticked up in December, but the Fed is expected to continue lowering interest rates to address this.
Supply:
- Month supply ranges from:
- 2.6 months in the Columbia Midlands market.
- Lower 3 months in the Upstate market.
- A balanced market typically has around 6 months of inventory, so South Carolina remains a seller’s market.
Home prices
- Median home prices in both the Midlands and Upstate markets have increased by just over 1% this year, showing a flat curve.
Migration trends
- South Carolina continues to be one of the top five states for domestic migration.
- More people are moving from Florida to South Carolina due to ongoing insurance issues in Florida.
Predictions for 2025. The market is expected to see interest rates remaining in the low to mid-5% range, with no return to the 3% rates seen a few years ago. Supply is likely to remain low, maintaining a seller’s market. Home prices are expected to continue rising, but at a moderate pace. Lastly, rent prices will continue to rise and are likely to outpace home prices.
What does this mean for you? For those waiting for a market crash similar to the one in 2008, it’s important to understand that this approach often doesn’t work out. Waiting for a market bottom can lead to missed opportunities. If you’re currently renting, keep in mind that your rent payment is 100% of the cost and goes to the property owner. Instead, owning a home allows you to invest in an asset, even at a 6% mortgage rate.
While there are no major market shifts expected in 2025, the outlook is positive, with steady growth and affordable interest rates making it a good time for those on the sidelines to consider buying. If you’ve been waiting to move, it might be time to start exploring your options and discussing your situation to determine the best course of action.
The real estate market in South Carolina for 2025 is set to be characterized by steady growth, low supply, and moderate price increases. If you’re considering buying or selling a home, it’s a good time to take action, as waiting for a market crash could result in missed opportunities. For those who are ready to make a move, contact me at 803-924-0564 or email me at brentd@thedowningteam.com. Let’s conquer the 2025 market together!
