July '26 CHS housing update: Sales increase despite stubbornly high rates

Charleston Market Update: July Proves Local Resilience Ahead of Autumn

The July data for the Charleston real estate market is in, and it paints a picture of surprising local strength. Despite mortgage rates ticking up slightly above where they were a year ago, buyer demand in the Lowcountry continues to post consistent year-over-year gains.

Here is your monthly breakdown of what's driving the Charleston market right now:

1️⃣ Demand Defies Rate Headwinds

• Written Sales: Up +5% in July '26 compared to July '25.

• Closed Sales: Finished +5% year-over-year.

• Under Contract: 267 properties went under contract last week (+3% YoY).

Even with mortgage rates marginally higher than last year, market activity has refused to cool down ahead of schedule. We are nearing Week 36 (late August), when our normal, annual seasonal slowdown begins—remember, that means a expected seasonal pacing shift, not a market stoppage.

2️⃣ Pricing Power Remains Intact

• Median Sale Price: Held strong at $449,000 for July. The upward trajectory over the past seven months has been broad-based across all price points.

• Price Per Square Foot: Sits at $309/sqft, maintaining near-record levels.

Because total median prices remain relatively stable while cost-per-square-foot creeps upward, buyers are opting for slightly smaller homes to keep overall purchase prices manageable—meaning underlying home values continue to appreciate.

3️⃣ Supply & Inventory Dynamics

Active inventory reached approximately 5,600 listings in mid-July, supported by roughly 2,400 new listings hitting the MLS.

However, with about 13 weeks (roughly 3 months) of supply overall—and active sub-markets running closer to 2.5 to 3.5 months—the market remains in mild seller's market territory. We still need approximately 5,600 additional listings marketwide to reach a fully balanced 5-month supply.

4️⃣ New Construction Breakdown

New builds continue to cushion resale inventory deficits, accounting for 38% of all pending contracts and 34% of overall closings.

• Berkeley County: 49% of all closings are new construction.

• Dorchester County: 43% of all closings are new construction.

• Charleston County: 15% of all closings are new construction.

5️⃣ Distressed Market Snapshot

Foreclosures and short sales remain non-factors at just 1.4% of available listings. Historically high levels of home equity combined with strong regional employment mean distress stays virtually nonexistent.

The Takeaway: If there are buyers sitting on the sidelines waiting for rates to drop, waiting may cost more in purchase price than it saves in interest.

Curious how your neighborhood's equity and $/sqft compare to the market average? Send over a message or comment below, and I'll put together a customized report for your address!