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South Carolina Housing Market Faces Price Reductions

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South Carolina Neighborhood

News Summary

South Carolina’s housing market is undergoing significant changes as a notable percentage of homes experience price cuts. Recent data reveals that 21% of homes in the state saw reductions in April. The Myrtle Beach metro area and Horry County notably reported even higher figures. While home prices remain volatile, gas prices have also experienced a decrease. Zillow predicts a nationwide decline in home values amid flat sales in South Carolina, raising concerns for buyers in metropolitan areas such as Charleston and Bennettsville.

South Carolina is experiencing a notable shift in its housing market, as home prices face significant cuts. Recent data from Realtor.com reveals that, in April 2025, approximately 21% of homes listed for sale in the state underwent price reductions. This statistic places South Carolina in the seventh position nationwide for the highest percentage of price cuts on the market.

The Myrtle Beach metro area stands out with a reported 21.4% of homes seeing price cuts in April 2025. Horry County records the same figure, highlighting the widespread nature of this trend across the region. In general, the phenomenon of rising home prices followed by cuts is particularly prevalent in the southern and western regions of the United States.

Danielle Hale, Chief Economist at Realtor.com, points out that many sellers may be holding unrealistic expectations regarding their home prices in the current market, which could explain the increasing rate of price reductions.

Alongside fluctuating home prices, gas prices in South Carolina have also seen changes. As of April 29, 2025, the average price per gallon of gas dropped by 11.2 cents, bringing it to $2.72. This reflects a decrease of 3.4 cents compared to the previous month and 19 cents lower than a year ago. The most affordable gas prices in the state were noted at $2.41 per gallon, while the highest reached $3.39, contrasting with the national average price of $3.04, which has remained relatively stable.

Looking ahead, Zillow forecasts an overall trend of declining home values across the United States, predicting a 1.9% decrease this year, in adjustment from an earlier estimate that anticipated a slight increase of 0.6%. In South Carolina, the average home value currently stands at $298,029, representing a modest 1.5% increase from the previous year. However, forecasts indicate that 12 out of 15 metropolitan areas within the state are expected to experience falling home values over the next year.

Specifically, Bennettsville is anticipated to encounter the most significant decline in home values, with a projected drop of 10% by March 30, 2026. Conversely, Hilton Head Island is expected to experience a 1.0% rise in home values, standing out as an exception to the general trend.

Home sales in South Carolina have remained flat, with a total of 19,237 sales recorded in the first quarter of 2025. This figure represents a minor decrease of 0.2% compared to the previous year. On a national scale, Zillow predicts a slight uptick in existing U.S. home sales, projecting a 3.3% increase, summing up to approximately 4.2 million sales year-over-year.

In terms of specific localities, Charleston’s average home values, which surpass $572,000, may see a 0.3% decline by next year. Other cities including Greenville, Columbia, Myrtle Beach, and Florence are also listed among those likely to witness drops in home value. Additionally, smaller towns like Bennettsville and Gaffney are projected to face declines greater than 5% within the upcoming year.

The search for affordable housing in Charleston remains a challenge, further complicated by new immigration policies that could affect the housing market landscape.

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