Key Takeaways
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The Resale Standstill: Resale sellers are hesitant to drop prices, but builders have strict quotas to meet, making them highly negotiable right now.
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The Rate "Cheat Code": While national rates hover in the low 6% range, local builders are offering permanent rate buy-downs into the 5% range using their preferred lenders.
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Closing Cost Coverage: Many new construction communities are offering $10,000 to $20,000 in closing cost credits, leaving buyers responsible for little more than their down payment.
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The Time Factor: You don't have to wait 8 months to build. "Spec" homes (move-in ready new builds) are sitting on the market, waiting for offers.
If you are a buyer frustrated by a 6% interest rate or sellers who refuse to negotiate, I want to redirect your attention slightly inland. Right now, the biggest "hack" in the Charleston real estate market isn't a secret off-market property—it's new construction.
During the boom of 2021 and 2022, builders had waiting lists. Today, the tables have turned. As we move through Q1 2026, national builders in our region have standing inventory (homes that are finished but unsold) and strict corporate sales quotas.
To move these homes, they aren't necessarily slashing the sticker price. Instead, they are manipulating the math to save you thousands on your monthly payment. Here is why you should be looking at new builds this month.
The Power of the Builder Buy-Down If you buy a 15-year-old home in West Ashley today, you are likely getting a mortgage rate around 6.1%. If you buy a new construction home in Summerville, the builder's preferred lender might offer you a permanent rate of 5.5%. That half-percent difference equates to massive savings over the life of the loan and increases your immediate purchasing power. Resale sellers simply cannot afford to match these financial incentives.
Closing Costs? Covered. In addition to rate buy-downs, builders are aggressively covering closing costs. It is not uncommon right now to see incentives of $10,000 to $15,000 specifically allocated to cover your attorney fees, title insurance, and prepays.
Neighborhood Watch: Where is the New Dirt?
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Summerville (Nexton & Ridgeville): The epicenter of new construction. Master-planned communities here offer the best incentives, especially for first-time buyers and growing families.
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North Charleston: Builders are focusing on townhomes and urban infill projects. These offer a lower price point and incredible proximity to the airport and Park Circle.
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Mount Pleasant (Upper): New construction here is luxury-focused (Carolina Park, etc.). You won't see as many massive closing cost incentives, but you will find high-end finishes and incredible school zoning.
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West Ashley: Very little new construction exists "inside the loop." If you want a brand-new home here, you will likely be looking at the outer edges near Bees Ferry.
Frequently Asked Questions:
Q: Do I need a Realtor to buy new construction? A: Absolutely. The friendly agent sitting in the model home represents the builder's best interests, not yours. You need your own representation to negotiate upgrades and review the builder's contract.
Q: What is a "Spec" home? A: A speculative home. It means the builder built it without a buyer lined up. These are the homes where you have the most leverage to negotiate right now.
By: Dustin Guthrie, Realtor
📞 Call/Text (843) 697-7757
📧 [email protected]
📸 Instagram @dustin_guthrie_realtor
