Florence Home Prices Surge Amidst Rising Inventory

News Summary

Florence has seen a remarkable 12% increase in home prices, with the median sales price reaching $270,450. This rise is accompanied by a significant 99.6% surge in home inventory, driven by new construction projects. While many buyers are eager, concerns over rising prices and economic uncertainty linger. Experts suggest the current market dynamics present a unique opportunity for buyers, especially as the busy summer selling season approaches.

Florence has witnessed a significant increase in home prices, with the median sales price rising 12% to $270,450 in April 2025 compared to the same month last year. This rise marks the highest increase experienced by local real estate agents, highlighting shifting trends in the city’s housing market.

In conjunction with these rising prices, the inventory of homes for sale in Florence experienced a notable surge of 99.6% in April 2025 compared to April 2024. The increased supply appears to be a response to growing demand, with homebuyers primarily focused on affordable properties in the price range of $200,000 to $350,000. The real estate community identifies the price range of $150,000 to $280,000 as particularly appealing, often referred to as the “golden” range for buyers.

New construction plays a significant role in the rising inventory levels. Recently approved projects by the city’s planning commission are set to contribute to this growth. More than 600 new homes are planned for West and South Florence, primarily developed by companies such as DH Horton. The Bluffs at Mill Creek in South Florence is one of the new subdivisions, with a sister development already underway in West Florence. However, many of these newly constructed homes are priced outside the desired range of most buyers, which has contributed to the overall increase in property prices.

While the median sales price continues to rise, many real estate agents in Florence do not anticipate such rapid growth to persist. The price per square foot of homes in the area is also increasing, further complicating the affordability for potential buyers. Additionally, homebuyers are exhibiting some hesitation in the market. Influences such as federal tariffs and broader economic uncertainty are leading many to approach the current market with caution.

Despite these challenges, experts believe that current market conditions might offer better purchasing opportunities for buyers due to decreased competition compared to previous years. Even with higher interest rates, there is an argument that buying a home now might help buyers save money in the long run. It is suggested that interest rates could decrease slightly in the latter half of the year, depending on federal policy changes, which may further enhance the attractiveness of buying now and refinancing later once rates improve.

As the busy summer season approaches, it is generally seen as a prime time for sellers, particularly for homes priced between $200,000 and $350,000. With the recent changes in the real estate landscape, prospective buyers and sellers alike are urged to consider the evolving market dynamics as they make their decisions.

Overall, the Florence real estate market is navigating a transition, with rising prices and increasing inventory creating an intriguing situation for both buyers and sellers. As the summer season nears, stakeholders in the market will be paying close attention to these trends and their implications.

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Additional Resources

• Post and Courier: Affordable Homes in Florence
• Statista: Average Property Prices in Florence, Italy
• Get Golden Visa: Buying Property in Italy
• CNBC: Couple’s Apartment Tour in Florence, Italy
• WPDE: New Apartments in Downtown Florence
• Wikipedia: Florence
• Encyclopedia Britannica: Florence

Author: STAFF HERE FLORENCE WRITER

FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.