As we enter 2025, the real estate market continues to evolve amidst shifting economic conditions, evolving buyer preferences, and changes in local housing supply and demand. Whether you’re planning to buy, sell, or invest in property, it’s essential to evaluate how the landscape has changed over the last year and adjust your plans accordingly. With 2024 behind us, it’s time to assess where we stand in terms of national, South Carolina, and Greenville real estate trends—and how you can make informed decisions for the new year.
In this blog, we’ll explore the major real estate trends that have shaped 2024, provide key statistics, and offer strategies for both buyers and sellers in 2025.
1. National Real Estate Overview: 2024 Recap and What It Means for 2025
The national housing market has undergone significant changes over the past year. Rising interest rates, fluctuating home prices, and regional variations in demand have made 2024 a year of uncertainty for many buyers and sellers. As we look toward 2025, understanding these key national trends will help you make informed decisions.
Interest Rates and Mortgage Markets
In 2024, the Federal Reserve maintained high interest rates in its ongoing effort to control inflation. Mortgage rates hovered between 6.5% and 7.5% throughout the year, making home buying less affordable for many. However, as we move into 2025, experts predict that interest rates could stabilize or even decline slightly in the latter half of the year, depending on inflation and the broader economic recovery. Even if rates don’t drop significantly, they’re expected to stay more predictable, which could provide some relief for buyers.
Home Prices and Affordability
Nationally, home prices in 2024 increased by an average of 3-5%, driven by limited inventory and persistent demand in many regions. Despite high mortgage rates, competition for homes remained robust, especially in suburban areas and cities with strong economic fundamentals. The median home price in the U.S. ended 2024 at around $417,000, a modest increase from 2023.
Housing Inventory and Market Activity
Inventory has remained tight across much of the U.S. due to homeowners holding onto their properties longer, primarily because many existing owners have locked in low mortgage rates. As a result, fewer homes have been listed, causing supply shortages in many markets. Despite this, 2025 may see a slight improvement in inventory levels, especially as some homeowners decide to sell to capitalize on rising prices.
Key Takeaways for Buyers and Sellers:
- For Buyers: As mortgage rates remain elevated, it’s essential to focus on homes within your budget and stay flexible with location and features. Also, consider securing a pre-approval early to be ready to make competitive offers when inventory does become available.
- For Sellers: Pricing remains crucial. While demand is strong in many regions, it’s still important to be realistic about price expectations and understand that high-interest rates may limit the buyer pool. Professional staging and strategic marketing will be key to selling quickly.
2. South Carolina Real Estate Trends: A Snapshot of 2024
South Carolina has been one of the nation’s most sought-after destinations, attracting a growing population due to its affordable cost of living, favorable tax policies, and diverse job market. As we look at the data from 2024, several key trends have emerged that are likely to continue shaping the state’s real estate market in 2025.
Population Growth and Migration Patterns
South Carolina’s population continues to grow, fueled by out-of-state migration. People from higher-cost states, especially in the Northeast and West Coast, are increasingly moving to South Carolina for its lower taxes, milder climate, and competitive housing prices. In fact, the state’s population increased by nearly 1% from 2023 to 2024, with notable growth in areas like Charleston, Columbia, and Greenville.
Home Prices and Inventory
In 2024, median home prices in South Carolina saw an increase of about 4-6%, depending on the region. Cities like Charleston, which experienced rapid price appreciation in recent years, began to see a slight slowdown in price growth, while other areas, particularly in the Upstate, continued to see strong demand and rising prices.
- Charleston: Median home prices were around $420,000, up from $400,000 in 2023.
- Columbia: The median price was $295,000, a moderate increase compared to previous years.
- Greenville and the Upstate: The median home price reached around $350,000 in Greenville, with a strong upward trend, particularly in suburban areas like Simpsonville and Greer.
Despite the rising prices, the inventory levels in South Carolina remained relatively low, especially in desirable neighborhoods. The lack of available homes has led to competitive bidding, particularly in cities like Charleston and Greenville.
Key Takeaways for Buyers and Sellers in South Carolina:
- For Buyers: Affordability will continue to be a challenge in many parts of the state. Buyers should be prepared for limited inventory and competition, especially in the most desirable neighborhoods. Expanding your search to nearby suburban areas may offer more affordable options.
- For Sellers: While the market may not be as heated as in previous years, demand remains strong in many parts of the state. Sellers who price their homes correctly and stage them well are still likely to get competitive offers.
3. Greenville, SC: Local Real Estate Trends for 2025
Greenville has emerged as one of South Carolina’s most dynamic real estate markets, driven by its vibrant economy, proximity to the mountains, and thriving cultural scene. As we head into 2025, Greenville’s housing market remains highly competitive, with a continued influx of new residents looking to capitalize on the city’s growing appeal.
Population Growth and Economic Development
Greenville’s population grew by 1.3% in 2024, marking a consistent upward trend over the last decade. The city’s job market, particularly in manufacturing, healthcare, and technology, continues to expand, further driving demand for housing.
The local economy remains one of the strongest in the state, with large employers like GE Aviation, Michelin, and Prisma Health contributing to a low unemployment rate and high wage growth. As businesses continue to relocate to the area, both the rental and housing markets are expected to stay strong.
Home Prices in Greenville
In 2024, Greenville’s median home price reached approximately $350,000, a 6% increase from the previous year. This price increase was fueled by demand from both local buyers and newcomers to the area, particularly in suburban areas like Simpsonville, Greer, and Mauldin, which saw some of the most significant price hikes.
Housing Supply and Demand
Inventory in Greenville remains one of the tightest in the state. As of the end of 2024, there was only 1.5 months of housing inventory available, well below the balanced market level of 6 months. This shortage has led to bidding wars and multiple offers on homes in desirable areas, especially close to downtown or in highly ranked school districts.
Luxury and New Construction Market
The luxury home market in Greenville continues to thrive, with homes over $1 million seeing strong demand, particularly in upscale developments like The Cliffs and The Reserve at Lake Keowee. Additionally, new construction is on the rise in suburban areas as builders try to meet the demand for housing. However, construction costs have risen, leading to higher-than-usual prices for new homes.
Key Takeaways for Buyers and Sellers in Greenville:
- For Buyers: If you’re buying in Greenville, be prepared for a competitive market. Start your search early, get pre-approved, and be flexible with your needs to avoid missing out on properties. Look into up-and-coming neighborhoods to find more affordable options.
- For Sellers: The Greenville market remains a strong seller’s market, but prices are beginning to stabilize. Sellers should still expect demand for homes, particularly in highly desirable neighborhoods, but it’s essential to price homes correctly to avoid overpricing.
4. Strategies for 2025: How to Plan Your Real Estate Goals
Buyers Should:
- Consider Expanding Your Search: Look beyond the city center to less competitive neighborhoods. This can offer more options and better affordability.
- Get Pre-Approved: With high demand and limited supply, having your financing in order will help you move quickly when you find the right property.
- Be Ready for Competition: Expect bidding wars in highly desirable areas, so ensure your offer stands out with favorable terms.
Sellers Should:
- Price Strategically: While demand remains strong, overpricing can turn potential buyers away. Work with a professional to price your home competitively.
- Stage Your Home: In a competitive market, presentation matters. Investing in professional staging and high-quality photos can help your home sell faster and for a higher price.
- Be Prepared for Negotiations: Buyers are becoming more cautious as mortgage rates remain high. Be ready to negotiate on price and terms.
Investors Should:
- Focus on Rental Properties: With a growing population, especially in cities like Greenville and Charleston, rental properties can be a great long-term investment.
- Explore New Construction Opportunities: As demand for homes continues to rise, new construction in suburban areas may present opportunities for rental income or flipping.
Conclusion: Preparing for a Dynamic Real Estate Year Ahead
As we step into 2025, it’s clear that the real estate market in Greenville, South Carolina, and nationwide will continue to