Will the SC housing market boom or bust in 2025? Here’s the forecast from industry experts
Expect home sales to rise along with prices across South Carolina this year, some industry experts say.
After years of soaring prices and declining sales that followed the COVID-19 pandemic, the South Carolina housing market has readjusted to a more typical state. The stabilization should carry with it a boost in sales and only moderate price increases in 2025, some experts say.
“Over the past two years, South Carolina’s housing market has been going through a major correction period,” said Joey Von Nessen, research economist at the Moore School of Business at the University of South Carolina. “Following a mini-housing bubble that emerged with the onset of the COVID-19 pandemic and that later peaked in 2021, housing sales activity in South Carolina has since been steadily adjusting back to pre-pandemic levels.”
SC housing market 2025
Von Nessen said that as we move more into 2025, the state will enter a new era in which the housing market’s correction period will shift into a time of sustainable growth.
“For example, the annual growth rate in South Carolina housing sales dropped from +16.8% in 2021 to -13.7% in 2023. However, by late 2024, sales growth had rebounded to 4.3%, which is roughly in line with pre-pandemic norms.”
Von Nessen said that strong demand fueled by high rates of statewide employment and population growth was accompanying the housing market stabilization.
“This implies that we will likely see positive sales growth in 2025 along with rising prices,” he said. “However, as with sales activity, the rate of growth in housing prices this year will be softer and more in line with pre-pandemic norms.”
Brent Downing, broker and team owner of the Downing Group Keller Williams in South Carolina, wrote in a recent online post that the outlook for the state’s housing market was positive in 2025.
“The real estate market in South Carolina for 2025 is set to be characterized by steady growth, low supply, and moderate price increases,” Downing wrote. “If you’re considering buying or selling a home, it’s a good time to take action.”
Downing noted that the market is expected to see interest rates remain in the low to mid-5% range, with no return to the 3% rates from a few years ago. Supply is expected to remain low, maintaining a seller’s market.
Greg Harrelson, realtor and president of Century 21 The Harrelson Group in Myrtle Beach, also expects the state will have a more active housing market this year.
“Early signs suggest a strong recovery as buyers are coming back with renewed interest, largely due to the availability of inventory,” Harrelson wrote in a recent online post. “While interest rates are still higher than many of us hoped, most buyers are well-aware of the current rates, and the initial shock has worn off. Buyers are adjusting, and so is the market.”
Roadblocks to growth
Von Nessen warned that the major limiting factor on housing market growth in 2025 will likely be mortgage interest rates, which are unlikely to decrease much. Inflation still remains above the Federal Reserve’s target of 2% and has shown no signs of trending down in recent months, Von Nessen said.
“To the extent that inflation remains elevated, the Federal Reserve will be less likely to make any further interest rate cuts in 2025,” he said. “This, in turn, would likely prevent mortgage interest rates from seeing any major declines.”
SC housing market 2024
So, how did the South Carolina housing market perform overall in 2024?
According to South Carolina Realtors’ annual housing market report, performance was positive — albeit minor — but showed signs of better things to come in 2025.
Pending sales increased by 0.5% year-over-year, finished 2024 at 88,176. Closed sales rose 0.4% year-over-year to 88,363.
The number of homes available for sale jumped 19.8% year-over-year. There were 23,860 active listings at the end of 2024. Also, new listings increased 9.9% year-over-year for a total of 120,658.
“Buyers took advantage of lower borrowing costs and a greater supply of homes on the market, leading sales of existing homes to surge in October and November, marking the first time since May that home sales exceeded 4 million units,” the report states.
