Last Updated on May 6, 2025
Welcome to your Q1 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
There’s no doubt about it, the real estate market is shifting. In most of our markets, we are seeing key benchmarks come back down to more normal levels after years of being over-inflated due to low inventory and high demand. Right now, active inventory is strong and almost all major markets in our area are now experiencing inventory levels that we haven’t seen since before the pandemic. In other words, things are returning to normal and there are more options for buyers.
Price appreciation is about 1-3% which is normal and healthy. The days of double-digit appreciation that we experienced during the pandemic housing craze are behind us for now. The average list-to-sale price is between 97-98%, which, again, indicates a healthy market.
Days on market across the board is sitting right below 2 months. In the mountains, we’re seeing closer to 80-90 days on market. Both figures are considered normal and healthy.
Key takeaways for sellers: Because there is more inventory, first impressions matter! We have seen many sellers “test the market” with pricing lately, which typically backfires as the seller has to drop the price and as the property continues to sit on the market, buyers wonder what’s wrong with it. Put your best foot forward in this market, which means working with your realtor to set an appropriate price and placing a huge emphasis on staging your home to sell.
Key takeaways for buyers: Just because there is more inventory doesn’t mean you shouldn’t be ready to buy when the right home finds you. Find a Realtor and get pre-qualified before you shop for homes.
Regional real estate updates
Upstate, SC
The local real estate market continues to trend toward a healthier balance between supply and demand. Compared to Q1 of 2024, current active inventory has increased by 43%, and months supply of inventory has risen from 2.8 to 4.0 months. This growth in available homes is giving buyers more options and easing the pressure of tight supply. Additionally, homes are spending 7.4% more time on the market, signaling a shift away from the fast-paced conditions of recent years.
Buyer activity remains steady, with closings up 8.9% year-over-year—evidence that demand remains strong. Home values continue to appreciate, with the median home price rising 1.5% and the average home price increasing by 6.2%. Sellers are still receiving strong offers, with a list-to-sell price ratio holding firm at 98.2%, reflecting ongoing buyer confidence.
Overall, the market is moving in a positive direction for both buyers and sellers. As we look ahead, we expect this trend toward balance to continue throughout the rest of the year, supporting a healthier and more sustainable market environment.
Mountain Lakes, SC
The local real estate market is showing continued movement toward a more balanced and sustainable pace. Compared to Q1 of 2024, current active inventory has risen by 34%, and months supply of inventory has increased from 2.9 to 4.0 months. This growth in available homes is helping ease pressure on buyers and improve overall market conditions. Additionally, homes are spending 8.8% more time on the market, signaling a gradual shift away from the highly competitive environment we’ve seen in recent years.
Closings are up 4.6% year-over-year, showing that buyer demand remains healthy. Home values continue to rise, with the median home price increasing by 5.1% and the average home price climbing a notable 12.7%. Sellers are still receiving strong offers, with the list-to-sell price ratio holding steady at 98.0%, reflecting continued buyer confidence and market strength.
Altogether, the market is trending in a positive direction for both buyers and sellers. As we move through the year, this steady shift toward balance is expected to continue, offering greater opportunities on both sides of the transaction.
High Country
As we move further into 2025, the High Country real estate market is continuing to rebalance, with inventory on the rise and buyer activity slightly slowing. This shift is creating a healthier, more negotiable market environment compared to years past.
The average days on the market is at 92 days, up from 88 in Q1, 2024, which is very normalized and is considered a healthy rate in the mountains.
In the 1st quarter of 2025, the average price was $570,000, down 2.1% from $582,000 in Q1, 2024. Price appreciation is mostly driven by limited inventory in the mountains.
Western North Carolina
At the close of the first quarter, closed sales units in WNC were down 4.6%. However, thanks in part to a strong luxury home market, median sales price in the region was up (2.4%). The story we have been following the longest, however, is that of home inventory. Beginning in 2014, we saw residential inventory for sale across WNC tumble to a shocking low in Q1 2022. Since then, it has been on
the upswing. We closed 2024 with 2,658 homes for sale. As of March 31, that number stood at 3,035.
As predicted at the close of 2024, the beginning of this year was characterized by a flurry of activity from buyers and sellers who postponed their real estate plans after the storm. High-end homes, in particular, have seen a sharp spike in inventory, shifting negotiations toward buyers. When paired with steady, easing interest rates, this opens up many opportunities for buyers across all price points. And buyers are beginning to respond.
Greater Charlotte area
The Charlotte market and surrounding South Carolina real estate markets are still favoring sellers. While our months’ supply of inventory has risen slightly, it’s not enough to indicate any significant shift in the market dynamics. Additionally, with several companies relocating to the area, the increased inventory is unlikely to keep pace with the buyer demand. This makes it a continued advantageous time to sell while at the same time buyers will see a tiny increase in the time they have to make a decision.
Triad
We continue to see signs of a more balanced and healthier real estate market, bringing options for buyers, and increased negotiations on both sides of the table. While the pace of new listings is outpacing sales, this shift is creating more opportunities and easing some of the pressure we’ve seen in recent years.
The average days on the market is at 50 days, up from 43 in Q1, 2024, which is very normalized and is considered a healthy rate.
In the 1st quarter of 2025, the average price was $333,000, up from $316,000 in Q1, 2024.
Triangle
Overall, the Triangle’s real estate market in Q1 2025 demonstrated a healthy balance between supply and demand, with increasing inventory and rising prices, underscoring the region’s ongoing appeal.
Due to the current strength in the Triangle Region, we are anticipating continued strength into the 2nd quarter and beyond.
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Allen Tate is the Carolinas’ largest real estate company with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Upstate SC, Highlands/Cashiers and Asheville/Mountain regions. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the U.S., with 500 real estate, mortgage, insurance, title, and escrow service offices and 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
