Last Updated on January 29, 2026
After years of volatility, a sense of stability returned to the real estate market in 2025.
While home sales remained below historical averages, momentum steadily improved. Buyers and sellers accepted higher mortgage interest rates as the “new normal,” and transaction activity followed suit.
Listing inventory improved significantly, rising 25-30% in most submarkets, easing the shortages of prior years. While still tight by historical standards, growing supply helped reduce some of the pressure that had driven rapid price increases and intense competition.
Price appreciation also moderated in 2025. Most markets experienced steady annual growth of 3–6%, with some micro-markets trending 2–3% but exceeding the midpoint. Importantly, home values largely held firm, underscoring the continued strength of underlying housing demand.
In 2025, we traded extremes for balance, laying the groundwork for more sustainable growth ahead. For 2026, our team remains cautiously optimistic. Inventory, existing home sales and home prices are all projected to rise modestly, signalling stability rather than correction.
Regional real estate updates
Upstate, SC
The market is currently experiencing an expansion in activity, driven by an influx of supply that is outpacing growing demand. While closed sales have risen a healthy 8.1%, an 18.0% increase in new listings has pushed current inventory up by nearly 30%, resulting in a 3.8 months’ supply of inventory.
This shift toward a more balanced landscape has given buyers more leverage, slightly lengthening the average time on market to 57 days and nudging the list-to-close ratio down to 98.1%, While specific hyperlocal areas may diverge from these trends, prices remain resilient, with both average and median sale prices posting modest gains of 1.1% and 1.9%, respectively.
Western Upstate
The broader market indicators point to an accumulation of supply, with current inventory rising nearly 45% and new listings growing by 17.4%, pushing the months’ supply to a more balanced 4.3 months. While demand has responded positively with an 8.9% increase in closed sales, the influx of homes has slowed the overall pace, increasing the average days on market to 76.
Despite this shifting dynamic and the inevitable variances found in hyper-local markets, property values remain surprisingly robust. The list-to-close ratio held steady at a strong 98.7%, while the average sale price climbed 3.8%, suggesting that while buyers have more choices, quality inventory is still commanding top dollar.
High Country
In Q4 2025, we saw an increase in both homes for sale and buyer pace. The second half of 2025 saw positive gains across the board as the High Country Region continued to recover from Hurricane Helene.
Sellers are facing competition across all price points—making strategic pricing, concessions and strong property conditions more important than ever. Days on market improved to 105 days and months’ supply of inventory is in a balanced range of 6 months. Price appreciation is also at a healthy 2% to 6% range.
On the buyer side, increased inventory and seller concessions provided buyers some added negotiations with list price to close price ratio at 95%. As we enter Q1 2026, we will see more buyer activity as mortgage rates closer to the 6% range versus starting Q1 2025 closer to the 7% range.
Western North Carolina
2025 was a year of renewed momentum for WNC real estate. Buyer interest and sales really ramped up over the summer, boosting a subdued first quarter and bringing the percent change in units sold to within single digits. Distressed sales also remain very low across the region, and well below the national average of 2% in October.
One of the biggest benefits to our mountain markets this year was an increase in homes for sale. Elevated inventory levels—especially at lower price points—brought in many buyers and helped cool competition somewhat. That gave many buyers, especially first-time buyers, a leg up in the market.
Greater Charlotte
New Listings were up in the Charlotte region in 2025 by 7.1 percent. Pending Sales increased 2.9 percent, and Inventory grew 15.8 percent. Prices moved higher as Median Sales Price was up 2% this year. Months’ Supply of Inventory (MSI) was up 12 percent to 2.8 months, indicating that supply increased relative to demand.
Overall, the data suggests that the Charlotte market in the fourth quarter of 2025 is cooler and more balanced than it was a year ago. Housing demand has softened slightly, giving buyers more time and options, while sellers are experiencing longer marketing periods and smaller negotiation leverage. However, steady price appreciation indicates continued underlying strength and stability. While the market is no longer as competitive as last year, it remains healthy and resilient.
“The data continues to highlight the affordability challenges facing many buyers in our region,” said Joan Goode, president of Canopy Realtor® Association/Canopy MLS. “Sales activity is strongest at higher price points, where inventory has grown the most, while more affordable single-family options remain limited. At the same time, the growth in condo-townhome inventory, particularly in mid-price ranges, is helping create more attainable pathways to homeownership, especially for first-time and budget-conscious buyers.”
Triad
In Q4 2025, the number of homes for sale outpaced buyer demand by a 2-to-1 margin. We saw some seasonality trends in the market with the holiday season, but still a healthy increase in inventory. Sellers are facing competition across all price points—making strategic pricing and strong property conditions more important than ever for a quick sale.
Both days on market, at an average of 54 days, and months’ supply of inventory at 3.3 months, have increased to healthy levels. Prices also continue to show a healthy year-over-year appreciation range of 3% to 4%.
On the buyer side, increased inventory, seller concessions, and lower mortgage rates are creating more affordability and an uptick in activity this quarter. As we enter Q1 2026, we will see more buyer activity as mortgage rates closer to the 6% range versus starting Q1 2025 closer to the 7% range.
Triangle
In Q4 2025, the Triangle’s residential real estate market showed signs of cooling and normalization. Inventory levels were higher than in prior years, giving buyers more options and reducing the intensity of bidding wars. Home prices generally held steady, with modest appreciation in some submarkets and flatter performance in others.
Homes took longer to sell, reflecting more balanced conditions and increased negotiation between buyers and sellers. Despite the slowdown, demand remained supported by population growth, a strong job market, and the region’s continued appeal to in-state and out-of-state buyers.
Lowcountry
The Lowcountry market across South Carolina and Georgia remains healthy and balanced, with new listings and total inventory both up 17% year over year, averaging 239 new listings per month. Even with this added supply, days on market dropped significantly in 2025 and closed sales held steady, showing that well-priced homes are still moving. With 3.4 months of inventory, a 95% list-to-close ratio, and median prices up 3.6%, the region continues to deliver strong demand, solid appreciation, and improving opportunities for buyers and sellers alike.
Highlands
The market is showing signs of improved balance, with listings and total inventory both up 12% and months’ supply at 4.5, which reflects a healthier, more stable environment. Even though closed sales are down 25%, days on market dropped 36% and the median price surged to $830,000, indicating that serious, well-qualified buyers are still active. With homes selling at 92% of list price, pricing remains strong while buyers benefit from more choice and negotiating room.
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Howard Hanna Allen Tate Real Estate is the #1 real estate company in the Carolinas, with more than 75 offices and 1,800 agents serving communities across North and South Carolina. As part of Howard Hanna Real Estate Services, the largest family-owned and operated real estate company in the United States, Howard Hanna Allen Tate offers a full suite of real estate services, including mortgage, insurance, title and relocation. For more information, visit www.howardhannatate.com.
