2025 Real Estate Prediction

Predicting the future is always difficult but especially difficult when trying to account for all the factors involved in the real estate market. When dealing with something complicated, I try to boil it down to its most basic components and go from there. Real estate, like any market, comes down to supply and demand. 

Supply:

In the Coastal Carolinas Association of Realtors market, our supply has steadily grown in 2024. This trend leads me to believe that supply will either hold steady or grow in 2025. Since Myrtle Beach is a popular retiree destination, there’s an inherent turnover of homes as the aging Baby Boomers pass away or move out of independent living. Those homes regularly come available and are part of our supply of properties to sell. In addition to that, new construction continues to be a huge part of our market. With new developments popping up across our area (especially inland), this indicates that we will have supply to sell in 2025. This is in direct contrast with the COVID market that was dominated by supply shortages with very few homes to sell. More supply will mean a more balanced market where buyers and sellers have negotiating power. 

Demand:

In a market that has beautiful weather, low taxes and the largest stretch of beach on the east coast outside of Florida… there’s always going to be demand to live here. The combination of increased prices and higher mortgage rates has tamped down demand a little. With the FED planning more cuts to the Federal Funds rate, buyers who have been on the fence may decide 2025 is their year to make a move. All things being equal, if you need buy a house and you are mobile, having a 6.5% interest rate in Myrtle Beach is probably going to be more attractive that having that same interest rate anywhere else. 

Prediction in one sentence: With steady demand and the chance of economic growth in 2025, we predict that the market will be fairly balanced with demand mostly matching supply and prices remain mostly flat. 

Disclaimer: this is a guesstimate based on market data. With the unknown economic impact of a different presidential administration beginning in January, all of this subject change. 

This is a macro market prediction based on big picture data. Real estate transactions are impacted by the big picture, however, most situations are specific to your unique circumstances. Understanding how to balance your specific situation with your goals and the housing market is where we’d love to help. Please don’t hesitate to contact us for a free, no-hassle consultation to see how we can assist you with your goals.  

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