Charleston Real Estate: Summer Momentum Builds
The Charleston market carried its spring momentum into May, posting strong gains in both contract activity and closed sales. Despite fluctuating mortgage rates and mixed national headlines, buyer demand remains healthy, home values continue to show resilience, and inventory levels are still below what would be considered a balanced market. Here’s a look at what the latest data is telling us about the Charleston real estate market.
A Strong Start to Summer
Last week, 368 properties went under contract marketwide, marking one of the strongest Week 23 performances in recent years. May finished with written sales up 9% and closed sales up 3% compared to May 2025, reinforcing the strong buyer demand we’ve seen throughout the spring market. With contract activity continuing to track above both last year and the long-term average, Charleston appears poised for another active summer season.
Mortgage Rates: Higher Than Spring, Lower Than Last Year
Mortgage rates have moved higher since reaching their low point earlier this year, but they remain below where they were a year ago. Recent volatility has been driven largely by inflation concerns and global events, yet the broader trend over the past 12 months still reflects modest improvement for buyers. (Freddie Mac)
While rates aren’t at their 2026 lows, they’re still hovering in the mid-6% range, compared to the upper-6% range this time last year. The takeaway for buyers is that today’s rates may not be ideal, but they remain more favorable than many experienced throughout much of 2025. (Freddie Mac)
The Refinance Advantage: If rates move lower in the future, homeowners can refinance. If rates stay where they are or move higher, buyers who purchased sooner may be glad they didn’t wait on the sidelines.
Home Prices Continue to Show Strength
The median sale price in the Charleston market remained elevated at $435,000 in May, following April’s strong performance and remaining well above historical norms. While month-to-month fluctuations are expected, home values have generally held in a tight range over the past several years, demonstrating remarkable stability despite changing mortgage rates and economic headlines.
Because median price reflects the middle sale in the market, it is less influenced by a handful of high-end transactions than average price. The continued strength we’ve seen this spring suggests that demand remains healthy and buyers are still willing to pay for well-positioned homes.
What This Means for Buyers: Waiting for rates to fall may not be the winning strategy many hope it will be. If home prices remain steady or continue to appreciate, today’s buyers still have options. If rates decline, refinancing is always available. If rates stay the same, you’ve secured your home. And if rates move higher, you’ll likely be glad you didn’t wait.
Home Prices Remain Resilient
The median sale price in the Charleston market held strong at $435,000 in May, continuing a trend of remarkable price stability. While still below March’s record-setting $458,000, May’s median price remains among the highest levels ever recorded in our market.
Because median price represents the midpoint of all sales, it provides a more accurate picture of overall market conditions than an average, which can be skewed by a handful of luxury transactions. The sustained strength we’ve seen over the past several months suggests that buyer demand remains healthy across a broad range of price points, supporting continued confidence in Charleston home values.
Buying Less for More?
The average sold price per square foot remained elevated at $313/sqft in May, continuing a long-term upward trend despite some month-to-month fluctuations. While this figure is below March’s peak of $334/sqft, it remains near historic highs and reflects the ongoing strength of Charleston home values.
When price per square foot continues to rise while median sale prices remain relatively stable, it often suggests buyers are prioritizing smaller homes or more efficient use of space to stay within budget. In other words, even when overall sale prices appear steady, the value of Charleston real estate continues to appreciate.
New Construction Continues to Shape the Market
New construction remains a significant part of Charleston’s housing market, accounting for 35% of all pending contracts and approximately 34% of all closings. While new homes represent just 23% of active inventory, they continue to attract a disproportionate share of buyer interest.
The impact varies by county:
Berkeley County: 51% of all closings are new construction.
Dorchester County: 43% of all closings are new construction.
Charleston County: 15% of all closings are new construction.
For buyers considering new construction, these numbers highlight just how important newly built homes remain in meeting housing demand across the Charleston region.
The Bottom Line
If you’ve been waiting for Charleston home prices to fall significantly or for a flood of inventory to hit the market, the data isn’t pointing in that direction. Buyer activity remains strong, home values continue to hold steady, and inventory is still well below the level needed for a balanced market.
While mortgage rates have moved up and down throughout the year, they remain below where they were a year ago. At the same time, homeowners continue to benefit from strong equity positions, and distressed sales remain extremely rare.
For buyers, that means opportunity still exists, but competition for well-priced homes remains healthy. For sellers, demand continues to support home values, particularly for homes that are properly priced and presented.
As we move into the heart of summer, Charleston’s real estate market remains remarkably resilient and continues to outperform many national trends.
Thanks to Dave Sansom for gathering real estate information to always keep us informed.