Mount Pleasant, SC Real Estate Market Outlook for 2023

Mount Pleasant, SC, offers residents easy access to beaches, a range of property types, and a town steeped in history. Although the real estate market has been challenging to predict in past months, Mount Pleasant is projected to cool going into the new year as buyer demand decreases due to rising mortgage rates. The area will likely remain in sellers’ favor even with cooling trends, and sellers can rest assured its amenities will keep the area popular with real estate seekers. To better understand what’s projected for next year, here’s an overview of current market conditions.

For a quick understanding of Upper and Lower Mount Pleasant, SC, real estate, review the figures below. Then, read on for an explanation of what these statistics mean for you as a buyer or seller in the area.

According to the most recent local market update by the Charleston Trident Association of Realtors:

Upper Mount Pleasant:

Lower Mount Pleasant:

Year to date, the median sales price of single-family Upper Mount Pleasant homes was $803,000 (24.9% higher than that of 2021), and the median price in Lower Mount Pleasant was $899,000 (21.5% higher than in 2021).

Currently, Upper and Lower Mount Pleasant are experiencing cooling trends. Buyers searching for single-family homes today will benefit from decreased competition, as closed sales have declined in both areas compared to last year. Buyers also have more options available to them compared to last year, as inventory has increased. Condo trends reflect single-family home trends, with an overall decrease in sales and an increase in inventory.

Despite lower buyer demand among higher levels of inventory, sellers listing their homes for sale in Mount Pleasant, SC, still have many factors working in their favor. Year to date, the number of days on the market is decreasing overall compared to 2021, with Upper Mount Pleasant listings averaging 15 days and Lower Mount Pleasant averaging 15 days. Alongside a quick sale, sellers benefit from a high sale price, as median prices are also still on the rise. This is likely due to inventory levels, which remain low even though they’re increasing.

Even though current market trends favor sellers today, the market is expected to cool going into 2023. Home prices will continue to increase as low inventory levels replenish slowly. Continued buyer demand for areas around Charleston, like Mount Pleasant, will also slow increasing inventory levels. South Carolina is a popular place for retirees due to its year-round warm weather and proximity to beaches. Individuals should expect Mount Pleasant to continue favoring sellers going into 2023. For one, inventory is still low, which keeps prices high and unlikely to plummet unexpectedly. The rate of new construction isn’t likely to boost inventory drastically enough to match demand, either. With new buyers like millennials entering the market, as well as strict lending standards, current trends only indicate a slowing increase.

A large factor of the slowing market is increasing interest rates for mortgages, which are expected to remain high and continue increasing into 2023. Economic conditions won’t make this a permanent reality, as rates will probably peak and then start to decrease. Buyers who aren’t deterred by mortgage rates will benefit from the slowdown of home sales into 2023, as well as the increase in options. Although spring 2023 will see a surge in buyers due to seasonal trends, buyers will still benefit from these market trends.

Buyers searching for Mount Pleasant homes in 2023 should partner with a local, expert agent like Kim Meyer to navigate slowing market trends and understand the range of options and neighborhoods available to them. Those searching for homes will benefit from decreasing closed sales, which creates less competition between buyers on the market. Slower increasing home prices will make the searching process more manageable, while higher inventory levels will provide more opportunities for negotiations in offers.

Buyers should be mindful of a few factors before starting their home search. Factoring in interest rates to a mortgage payment is important, as they’re expected to increase going into 2023. Currently, average South Carolina rates for a 30-year fixed loan are around 6.56% and 5.96% for a 15-year fixed loan. Inflation can also serve as a barrier for buyers interested in Mount Pleasant, SC, real estate. The cost of living is 16% higher than the national average, while housing is 37% higher compared to the US average.

Sellers who work with a Mount Pleasant, SC, real estate agent can expect a successful sale in 2023. The city is in the top 20% across the United States for real estate appreciation rates, with a 113.58% increase in the past decade. This, coupled with prices increasing into the new year, means sellers can expect good offers for their properties in 2023. Low inventory and high buyer demand from millennials, retirees, and vacationers will keep home sales relatively quick as well.

However, sellers should be mindful of impacted buying power entering the new year. As mortgage rates and inflation take their toll, fewer buyers may find it possible to purchase a property. This will result in longer listing times and fewer offers. Although conditions will lean in sellers’ favor, it’s important to remain patient and price according to market trends for a successful sale.

When you’re ready to start planning your next home transaction, contact experienced local agent Kim Meyer to guide you through the process. Kim is a Charleston real estate specialist with vast experience in the Mount Pleasant, SC, real estate scene. She would love to help you get started!

_{*Header photo courtesy of Shutterstock}