T
he Lowcountry's residential real estate market is experiencing a slowdown due to national economic uncertainty, but it remains one of the strongest markets in the country. A record-breaking $13.5 million sale on Sullivan's Island highlights the demand for waterfront properties, which are particularly sought after by buyers with no budget constraints.

    Charleston's median home price has risen 45% over the past five years, outpacing wage growth and contributing to affordability issues. The region's low inventory is a major concern, leading to higher prices and slower sales. In March, the tri-county area saw a 7.2% increase in transactions year-over-year, but Charleston County's median home price jumped 13.6% to $727,500.

    Dorchester County's median home price remained relatively stable at $387,755, while Berkeley County's rose 5.9% to $413,400 and Colleton County's dropped 24.4% to $325,000 despite an increase in transactions. First-time homebuyers are being hit hardest by the rising prices.

    Waterfront properties continue to attract high-end buyers, with an 8,138-square-foot mansion on Charleston's Battery selling for $15.2 million in March. The sale of a pair of Sullivan's Island homes exceeded the $10 million mark, with one property selling for $13.5 million in April.

    As the market slows down, experts predict that the second quarter will be challenging due to uncertainty surrounding President Trump's tariffs and economic concerns. Closed home sales were down 1.2% in March, but homes are still selling within a healthy 30- to 60-day range. The days on market shot up 40.5% year-over-year from 37 to 52 days.

    In Beaufort County, the market is shifting towards a buyer's market, with more houses on the market and things sitting longer. Buyers are taking their time making decisions due to creeping interest rates and rising home prices. New neighborhoods in Jasper County and apartments in northern Beaufort County are adding options to the traditionally competitive area.

    Experts predict that mortgage interest rates will remain steady under 7% for most of the year, but home prices may not come down despite a significant increase in supply. Land is king in the Lowcountry, with development focused on areas like Summerville and Cane Bay due to their availability of land. New construction makes up 40% of pending home sales, indicating that people are still moving to the area and driving growth.