Priced Out of Charleston, More Buyers Are Landing in Pawleys Island, South Carolina

Written by:

Alejandra Rodriguez

Date:

23 Jun 2026

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Along South Carolina’s coast, between the bustle of Myrtle Beach and the prestige of Charleston, sits a stretch of coastline that has quietly been attracting a growing number of buyers looking for something different. Pawleys Island, one of the oldest seaside resorts in the country, has long prided itself on being, as locals say, “arrogantly shabby.” That low-key identity is increasingly becoming a selling point as buyers priced out of neighboring markets work their way up the coast and discover what the area has to offer.

Karen Lappas, co-lead of The Lappas DeVoe Team at The Litchfield Company, affiliated with Christie’s International Real Estate, has been working this market since 2016. Over the past decade, she has watched the area move through a pandemic-driven boom, a post-COVID cooldown, and now what appears to be a gradual return to more balanced conditions. With inventory rising and buyer psychology adjusting to higher interest rates, the market is entering a new phase heading into late 2026.

A Market Finding Its Footing

The recovery is showing up in the numbers. In Pawleys Island, inventory rose approximately 14% from April to May 2026, though it remains about 30% below where it stood at the same point last year. Murrells Inlet, the neighboring community to the north, has seen a sharper 35% month-over-month inventory increase, yet even that market sits roughly 3% below last year’s levels.

“Buyers have a few more homes to choose from,” Lappas notes, “and sellers who are on the fence should probably think about this being a good time to list.”

The post-COVID hangover that affected much of the coastal Southeast is still working its way through the system. The pandemic years pulled forward years of latent demand, as buyers who might have moved over a five-to-seven-year horizon all made their moves at once. That compressed cycle left the market quieter than usual in the years that followed. Now, with inventory gradually loosening, the market appears to be finding a more sustainable rhythm.

Rate Acceptance

One of the more meaningful shifts Lappas is observing has less to do with inventory and more to do with mindset. For much of the post-pandemic period, buyers anchored to the ultra-low mortgage rates of 2020 and 2021 either held onto their existing homes or waited on the sidelines, expecting rates to fall back toward those levels.

That wait-and-see posture is starting to soften. Rates currently sit just under six percent, and Lappas believes that may be as low as they go. “People are realizing that rates in the twos and threes are not coming back in our lifetime,” she says. “I think that’s about as good as it’s going to get, and people are starting to make the plunge.”

Her advice to hesitant buyers reflects a straightforward calculation: homes in this market have appreciated consistently at two to five percent annually, and any savings from a potential rate drop are likely to be offset by rising home prices in the interim. “You can always refinance if rates do drop,” she points out, “but that home price is not going to go down in the foreseeable future.”

Who Is Buying in Pawleys Island

The buyer pool is notably varied, which Lappas sees as one of the market’s strengths. In a single month, her team was working with a first-time homebuyer couple, a family selling a parent’s home after a death, buyers relocating from Colorado for a lifestyle change, and a couple who purchased their home nine years ago but are now moving north to be closer to grandchildren.

Out-of-state buyers represent a significant share of activity. The area draws people who have looked at Hilton Head or Charleston, found those markets either too expensive or too busy, and eventually discovered Pawleys Island. “They work their way up the coast and find our little corner of the world,” Lappas says. “It’s a whole lot less commercial, less busy, and more affordable.”

Second-home and investment buyers are also active. The presence of resort communities with rental programs gives buyers the option to offset carrying costs when they are not using the property, a structure that appeals to those not yet ready to retire but wanting a foothold in the market.

What Moves and What Sits

Well-priced, well-maintained homes are still selling, typically achieving 97 to 98 percent of asking price. In Pawleys Island, properties in good condition are generally moving within 60 to 80 days. Murrells Inlet, with its larger inventory of newer construction, is seeing longer days on market, often exceeding 100 days.

Higher-end properties are in some cases moving faster than mid-range ones. Lappas attributes this partly to the buyer profile at that price point: purchasers who often pay cash and do not need to sell an existing home before closing. A listing in the $550,000 range sold within 24 hours of hitting the market, driven by its location, condition, and access to resort amenities.

Properties that are struggling tend to share common characteristics: older condominiums in higher flood zones, where the purchase price may look reasonable but ongoing costs – including HOA fees and flood insurance – push the total carrying cost beyond what buyers in that budget range are comfortable with.

The Hidden Costs Out-of-State Buyers Miss

For buyers coming from inland markets, the cost structure of coastal ownership can come as a surprise. Flood insurance, HOA fees, and maintenance costs vary significantly depending on a property’s location within the community and its flood zone designation.

Lappas and her husband and business partner Bruce DeVoe make a point of walking buyers through these variables early in the process. Their approach includes touring gated communities that buyers cannot access on their own, giving clients a feel for different neighborhoods before narrowing down to specific properties. “Finding just the right home in a community that just doesn’t feel right defeats the purpose,” she says.

For investors specifically, Lappas emphasizes the importance of understanding HOA financial health, not just the fee amount. Reserve levels, board stability, and pending assessments can all affect the long-term value of a unit in ways that are not immediately visible in a listing.

The Litchfield Company, which has been a fixture in the Pawleys Island market for more than 60 years and has played a direct role in developing many of the area’s communities, affiliated with Christie’s International Real Estate in 2024. For Lappas, the practical impact has been incremental: additional marketing tools, agent training resources, and broader reach for higher-end listings. “The Litchfield Company name is well respected,” she says. “Christie’s adds another layer of luxury to us.”

Looking Ahead

As inventory continues to build heading into the second half of 2026, conditions appear to be improving for both sides of the market. More choices should help move buyers who have been waiting for the right property, and that activity in turn creates opportunities for sellers who have been reluctant to list without a clear path to their next home.

“I am very positive about where the end of the year will go and what we’re looking at for 2027,” Lappas says.

For a market that has long defined itself by what it is not – not Charleston, not Myrtle Beach, not Hilton Head – that quiet confidence may be exactly what continues to draw buyers in.

About the Expert: Karen Lappas is a real estate agent with 3 designations from NAR: ABR, PSA, SRES, and co-lead of The Lappas DeVoe Team at The Litchfield Company, affiliated with Christie’s, serving the Pawleys Island and Murrells Inlet markets on the South Carolina coast.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.