Key Takeaways
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Inventory is Increasing: Active listings in Charleston are up ~15% year-over-year, ending the "scarcity mindset" of 2022-2024.
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Rates are Stable: Interest rates have settled in the low-to-mid 6% range, allowing for predictable budgeting.
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Negotiation is Back: The average days on market is now 56 days, giving buyers leverage to request repairs and closing costs.
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Hidden Costs: Flood insurance rates have changed significantly in 2026; buyers must check specific flood zones (X vs. AE) before offering.
If you tried to buy a home in Charleston between 2021 and 2024, you probably remember the drill: See a house online at 9:00 AM, tour it at noon, and find out it had ten offers by dinner time. It was a market defined by speed, stress, and compromise.
Welcome to 2026.
As we close out January, the data from the Charleston Trident Association of Realtors is painting a very different picture. We aren't seeing a crash, but we are seeing what I call "The Great Reset." The market is taking a deep breath, and for the first time in years, buyers have the luxury of time.
Whether you are looking to buy in Mount Pleasant or sell in North Charleston, here is the deep dive into what is actually happening on the ground this week.
1. The "Selection Market" Has Arrived
The biggest headline of early 2026 isn't interest rates—it's inventory.
For the past three years, the number one complaint from my clients was, "There just isn't anything good to buy." That has officially changed. According to the latest MLS data, active listings in the Charleston tri-county area are up roughly 15% compared to this time last year.
What this means for you:
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Buyers: You are no longer scraping the bottom of the barrel. You have choices. Instead of fighting over the one decent house in Park Circle, you might have three or four to compare.
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Sellers: This is your reality check. In 2022, you could put a sign in the yard and sell a home that needed a new roof and outdated kitchen for top dollar. Today, buyers are picky. If your home isn't "show-ready" or priced correctly against the new competition, it will sit. The average days on market has crept up to 56 days, giving buyers ample time to be selective.
2. The Interest Rate Reality: 6% is the New Normal
We have to stop waiting for 3%.
We are currently seeing rates hover in the low-to-mid 6% range. While everyone would love to see them drop back to 2021 levels, financial experts largely agree that those days are behind us. The "wait and see" strategy that kept many buyers on the sidelines in 2025 is fading because people are realizing that life doesn't wait for the Federal Reserve.
The silver lining? Stability. When rates were volatile, it was impossible to budget. Now that they have stabilized, you can accurately predict your monthly payment. Plus, with inventory rising, I am seeing more sellers willing to offer rate buydowns (paying upfront to lower your interest rate for the first 1-2 years) to close the deal. This is a negotiation tool that simply didn't exist for buyers two years ago.
3. The "Silent" Cost: Insurance and Flood Zones
If you are relocating from Ohio, New York, or really anywhere non-coastal, this is the section you need to read twice.
In 2026, the purchase price is only half the story. The real question savvy buyers are asking is: "What is the total monthly cost to own?"
Recent changes to FEMA flood maps and carrier adjustments in South Carolina have made insurance premiums highly variable.
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The Scenario: You might find two homes in Mount Pleasant listed for $850,000.
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House A: Is in an "X" flood zone (low risk) and newer construction. Insurance might be $2,500/year.
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House B: Is in an "AE" flood zone and built in 1990. Insurance could be $9,000+/year.
That difference is equivalent to an extra $100,000 on your mortgage. My Advice: Never rely on the "estimated insurance" numbers you see on Zillow or Redfin. They are often wrong by thousands of dollars. Before we even write an offer, I pull the specific CLUE report or get a quote from a local broker so you aren't blindsided three weeks before closing. (Home owner tip: you can request a copy of your CLUE report from LexisNexis by calling 1-866-312-8076 or by visiting consumer.risk.lexisnexis.com).
4. Neighborhood Watch: Where are the deals?
Real estate is hyper-local. While the "Charleston market" is stabilizing, individual pockets behave differently.
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Mount Pleasant: Remains highly competitive due to the schools, but we are seeing price reductions on homes priced over $1.5M that haven't been updated.
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North Charleston/Summerville: This is where the inventory boom is most visible. New construction is aggressive right now, with builders offering significant closing cost incentives to move move-in ready homes. If you are a first-time buyer, this is your sweet spot.
Frequently Asked Questions (FAQ)
Q: Is the Charleston housing market crashing in 2026? A: No. While inventory is rising and homes are sitting longer, prices remain stable. We are seeing a "normalization," not a crash.
Q: Do I need flood insurance in Charleston if I'm not on the water? A: It depends on your specific flood zone. Even homes not directly on the water may be in an AE zone requiring insurance. Always check the current FEMA maps before buying.
Q: What is the average home price in Charleston right now? A: As of early 2026, the median sales price in the Charleston region is hovering around $434,000, though this varies significantly by neighborhood.
By Dustin Guthrie Realtor, Carolina One Real Estate
📞 Call/Text (843) 697-7757
📧 [email protected]
📸 Instagram @dustin_guthrie_realtor
