Last Updated on August 2, 2025
Welcome to your Q2 Market Update for 2025. Following these updates will give you a good indication of where the market is heading and what you can expect locally in each of our regions throughout the Carolinas.
Market update
Recently a good friend and colleague of mine and I were discussing the real estate market. As we reminisced about the hotter-than-hot pre-covid and post-pandemic era, he remarked, “The market was moving at 100 miles per hour, even though the speed limit remained at 70. Now, the speed limit is 65 and the market is 65.”
I can’t think of a better picture to describe today’s housing sector than that. Things are slowing down and we’re entering a healthier residential landscape.
Thinking about buying or selling a home soon? Here’s what you can expect:
Interest rates
Interest rates haven’t quite fizzled as predicted earlier in the year and we are now entering year three of rates fluctuating between six and seven percent. Many homeowners are simply unwilling to trade in ultra-low interest rates; in fact, here in North Carolina 76% of homeowners have rates under five percent, and 68% have rates under four percent. Once interest rates begin with a five it is my belief we’ll see a wave of inventory hit the market.
Housing inventory
In a word, the amount of housing inventory on the market can best be described as healthy. In the Carolinas, we currently have approximately three months’ worth of inventory, with slight increases occurring each month. Three months of inventory is just shy of what we call a balanced market, and that happens when we are between four and six months of inventory.
Average days on market (DOM) has also increased, trending more towards 50 days instead of two to three days or minutes like we have seen in recent years.
Home prices
The median price is appreciating by about two percent per year in the Carolinas. The median price is where the middle is, and I always call it the heat index because it’s where most of the activity is happening. While a two percent price appreciation is healthy, it’s significantly lower than what we’ve witnessed in recent years, which is why many sellers are enticed to list their homes for more than the market is currently willing to offer.
The bottom line for buyers: Nearly 22% of homes in the Carolinas are selling for over asking right now. Despite more inventory on the market, a well priced home in good condition is still in high demand. Buyers should do their due diligence to have all financing in place before they start the home search process so they are prepared to make an offer.
The bottom line for sellers: The biggest issue sellers are facing right now is not pricing their home correctly from the onset. A staggering 36% of all active listings have had a price change. Homes with price changes often end up selling for much less, as they end up sitting on the market longer, as prospective buyers wonder what’s wrong.
Regional real estate updates
Upstate, SC
The local real estate market continued to show healthy growth and increased balance in the second quarter of 2025. On average, there were 2,545 active listings per month, representing a 13.5% increase from the same period last year. Current inventory has grown significantly as well, reaching 6,226 homes on the market at the end of the quarter—up 43% from 4,354 a year ago. This expansion in available properties is giving buyers more choices and helping to moderate competition.
Closed sales also saw steady improvement, averaging 1,661 per month—an 8% increase compared to Q2 2024. Despite more listings to choose from, demand has remained strong. The average days on market ticked up slightly to 46 days from 45, indicating that homes are still moving at a brisk pace overall.
The months supply of inventory increased to 4.6 months, up from 3.3 months last year, marking progress toward a more balanced market between buyers and sellers. Meanwhile, pricing remains resilient: the average sale price rose 4.0% to $394,731, and the median price increased 2.1% to $318,970.
Western Upstate
In Q2 2025, the local real estate market showed continued signs of moving toward a healthier and more balanced trajectory. The average number of active listings per month rose 14.4% to 921, while current inventory climbed 44.2% year-over-year to 2,329 homes. This increase is giving buyers greater selection and helping to reduce the intense competition of previous years.
Closed sales averaged 598 per month—a 5% increase compared to Q2 2024—highlighting steady, healthy buyer engagement. Homes spent an average of 62 days on the market, up slightly from 58 days last year, further indicating a shift toward balanced market dynamics.
Months supply of inventory increased from 3.3 to 4.7 months, a key indicator of improved balance between supply and demand. Meanwhile, the list-to-close price ratio softened slightly to 97.9%, down from 98.5%, showing that while sellers still hold strong positions, pricing power is normalizing.
Home values remain on the rise, with the average price increasing 5.7% to $413,384 and the median price up 3.4% to $310,384—underscoring a healthy level of appreciation.
Altogether, the market is stabilizing in a way that benefits both sides of the transaction. With greater inventory, steady demand, and sustained price growth, conditions are aligning for a more balanced and healthy housing environment heading into the second half of the year.
High Country
In the second quarter, the number of homes for sale had a positive gain and buyer pace continued to improve. This surge in inventory means sellers are facing increased competition across all price points—making strategic pricing and strong property condition more important than ever for a quick sale.
Days on market improved to two months, yet home values continue to show a healthy year-over-year appreciation of 2 to 5%.
On the buyer side, increased inventory and seller concessions provided buyers some added negotiations with list price to close price ratio between 95% and 97%. Meanwhile, mortgage rates have held relatively steady, hovering between 6.75% and 7% for a 30-year conventional loan.
Western North Carolina
Our local economic outlooks are also a bit hazy as hurricane recovery continues. Tourism is behind by double-digit percentage points from where it should be at this time of year, affecting many locals’ livelihoods and financial well-being in very direct ways. Many businesses continue to struggle to regroup and rebuild, while others have reopened in time for the summer and fall seasons. The market may have shifted a bit over the past year, but we expect that shift to be short-term, and we remain very bullish about the real estate markets here in the region.
It is our belief that we will see a strong upswing in our real estate markets as visitors return to these beautiful mountains we are so fortunate to call home. We are excited to see visitors returning to our area’s main streets and many shops, parks, and businesses reopening just in time for the late summer and fall seasons, historically our most active seasons of the year. We look forward to the season and to the year ahead with great anticipation.
Greater Charlotte
In addition to buyers having more inventory to peruse, they are also getting some additional time to look with the increase in average days on market.
Mortgage rates have remained fairly steady for 30-year conventional mortgages.
And for sellers, competition is increasing, so positioning their home properly is key. Having a longer-term marketing plan in place to maximize a listing’s exposure is also a crucial component to maximizing the seller’s net proceeds.
Triad
In the second quarter, the number of homes for sale outpaced buyer demand by a 2-to-1 margin. This surge in inventory means sellers are facing increased competition across all price points—making strategic pricing and strong property condition more important than ever for a quick sale.
Days on market are now approaching two months, yet home values continue to show a healthy year-over-year appreciation of 5%.
On the buyer side, increased inventory and seller concessions led to a noticeable uptick in activity this quarter. Meanwhile, mortgage rates have held relatively steady, hovering between 6.75% and 7% for a 30-year conventional loan.
Triangle
We saw a continued rise in inventory in the 2nd quarter of 2025, with very modest price growth. The market still favors sellers for the most part, but with more options available to buyers, they are beginning to see a more level playing field. New construction remains a driving force across the region. Rates remain higher than most would like to see, but the numbers indicate that demand remains high.
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Allen Tate is the Carolinas’ largest real estate company with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Upstate SC, Highlands/Cashiers and Asheville/Mountain regions. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the U.S., with 500 real estate, mortgage, insurance, title, and escrow service offices and 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
