Welcome to your Q3 Market Update for 2025. Following these updates will give you a good indication of where the market is heading and what you can expect locally in each of our regions throughout the Carolinas.
Market update
The third quarter brought a clear theme across the Carolinas: more choices, more time, and the need for increased strategy from sellers.
Listing inventory rose 25–30% year over year across most submarkets—granting buyers who’ve endured years of limited availability a healthy boost of homes to consider. This jolt of inventory means sellers can no longer rely on inventory scarcity and must present their home in the best possible light and at the best possible price to remain competitive. The Carolinas are currently averaging four months’ supply of inventory, which suggests a balanced market where both sides have leverage, a notable shift from the two-month supply environment we experienced just two years ago.
Despite more signs in the yard and longer days on market, the data does not support a housing crash narrative. Most markets are tracking a steady 3–6% annual appreciation, with local pockets trending nearer 2–3% or pushing above the midpoint, depending on micro-location and price point. In short, the market is normalizing, not unraveling.
Pricing is the fulcrum. A growing share of listings—roughly 25–30% depending on the metro—are registering price reductions. Reductions often reflect a miss at launch, not a decline in intrinsic value. The story buyers read when they see a price cut is rarely neutral; it implies doubt, deferred maintenance, or overreach. Sellers can flip the script by pricing to create demand rather than to test the edges of the market.
Active inventory is the new North Star. In this new housing inventory environment, closed sales from 3–6 months ago can lag reality. Sellers who embrace market feedback, and therefore, price accordingly, will protect net proceeds better than those who wait through multiple reductions. Buyers who are pre-approved can capitalize on Weak 1 softness, making clean, swift offers before broader interest picks up in Weeks 2 or 3.
We’re also seeing the demand side evolve from necessity to discretion. During the highest mortgage rate period, transactions skewed toward life events—relocation, family changes, and multigenerational needs—keeping national existing-home sales near 4 million annually. As rates stabilize and affordability slowly improves, pent-up discretionary movers are reemerging. Households that bought in 2020–2021 now want a different location, layout, or lifestyle.
Regional real estate updates
Upstate, SC
The local real estate market continued to show signs of expansion and stabilization in the third quarter of 2025. An average of 2,394 new listings per month hit the market—a 17.1% increase from 2,044 in Q3 2024. End-of-quarter inventory climbed to 6,516 homes, up 40.8% from 4,629 last year, giving buyers more options and easing competitive pressure across many price points.
Buyer activity remained strong amid the growing supply. Closed sales averaged 1,576 per month, posting a 6.5% gain over 1,480 during the same period last year. Homes are taking slightly longer to sell, with Days on Market rising to 54 days, compared to 49 days a year ago—a natural reflection of increased buyer choice.
The Months Supply of Inventory reached 4.6 months, up from 3.4 months in Q3 2024, signaling steady movement toward a more balanced market between buyers and sellers.
Pricing held firm with modest gains. The average sale price rose to $406,614, an increase of 5.2% from $386,383, while the median price advanced 2.3% to $325,264, up from $317,980 last year. The list-to-close price ratio edged down slightly to 98.1% from 98.3%, suggesting that while sellers still maintain considerable leverage, negotiations are becoming more commonplace.
Western Upstate
The regional housing market continued to advance in the third quarter of 2025, showing healthy growth and ongoing normalization. Active listings averaged 853 per month, marking a 13.1% increase from 754 in Q3 2024. By the end of the quarter, inventory reached 2,432 homes, up 34.9% from 1,803 a year ago. This expanded selection is giving buyers more leverage and easing the pace of competition seen in prior years.
Demand remains steady alongside the growing supply. Closed sales averaged 577 per month, reflecting an 8.8% rise from 530 during the same period last year. Homes are taking slightly longer to sell, with Days on Market increasing to 71 days, compared to 65 days in Q3 2024—an expected trend as buyers gain more choices.
The Months Supply of Inventory climbed to 4.7 months, up from 3.7 months, signaling continued progress toward a balanced market environment.
Price trends remained stable with modest gains. The average sale price inched up 0.8% to $420,919 from $417,325, while the median price rose 1.7% to $318,483, up from $313,143 last year. The list-to-close price ratio dipped slightly to 97.4%, down from 97.6%, suggesting that sellers are still achieving strong returns, though negotiations are becoming more common
High Country
In Q3 2025, the number of homes for sale had a positive gain and buyer pace continued to improve. This surge in inventory means sellers are facing increased competition across all price points—making strategic pricing, concessions and strong property conditions more important than ever.
Days on market remained stable at three months. Home values remained stable with more homes for sale.
On the buyer side, increased inventory and seller concessions provided buyers some added negotiations with list price to close price ratio at 96%. Meanwhile, mortgage rates slowly decreased to an average of 6.25% for a 30-year conventional loan.
Western North Carolina
Home sales in the mountain region continue to lag behind the levels of the recent boom years, and a new report released by the National Association of REALTORS® shows that this trend is not specific to Western North Carolina. Even so, the North Carolina housing market offers a significant price advantage over the national average, meaning real estate remains a strong financial investment in our mountains.
The WNC region’s median sales price also decreased considerably, dropping 16.8% to $436,590 from its position at $525,000 last year. While that may look alarming, it’s important to remember that the median sales price looks only at homes being sold, not overall home values. A dramatic drop like this reflects a market shift toward more affordable homes.
One highlight of our local market is that home inventory continues to climb after hitting record lows in 2022. As of October 1, the number of homes for sale in WNC was 4,295, down slightly from Q2 but well above last year’s figure of 3,201. The growth in inventory is encouraging, giving more buyers a chance to find suitable homes. It may also help moderate further price increases, another positive sign for home buyers.
Greater Charlotte
Overall, the data suggests that the Charlotte market in Q3 2025 is cooler and more balanced than it was a year ago. Buyer 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.
“With prices holding steady and inventory expanding, both local buyers and the 157 people moving to the region each day now have more options, greater negotiating power, and more time to make thoughtful decisions,” said Charisma Southerland, president, Canopy Realtor Association.
Triad
In Q3 2025, the number of homes for sale outpaced buyer demand by a 4-to-1 margin. This surge in inventory means sellers are facing increased competition across all price points—making strategic pricing and strong property conditions more important than ever for a quick sale.
Days on market are now at 1.5 months, yet home values continue to show a healthy year-over-year appreciation of 3.5%. On the buyer side, increased inventory, seller concessions, and lower mortgage rates are creating more affordability and an uptick in activity this quarter. Mortgage rates have slowly decreased to an average of 6.25% for a 30-year conventional loan.
Triangle
We saw a continued rise in inventory in Q3 2025, with very modest price growth. The market still favors sellers for the most part, but with more options available to buyers, they are beginning to see a more level playing field.
New construction remains a driving force across the region, especially in suburban areas like Holly Springs, Wendell Falls, and Wake Forest.
Rates remain higher than most would like to see, but the numbers show that demand remains high.
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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.
