Published October 1, 2026 in Market Update

Luxury demand is still moving despite higher rates

By April Formo

Real estate, luxury

Mortgage rates crossed 7% for the first time since January 2025, according to Realtor.com. That number stops some buyers. It does not stop all of them.

CNBC reported 194 sales at $10 million or more in Miami-Dade County through the first eight months of 2026. That pace, if it holds, points toward 291 by year-end, CNBC noted. And 82% of Miami condo sales at $1 million or more in 2025 closed in cash, according to CNBC. Cash buyers do not feel a rate move the same way a financed buyer does. That is part of why luxury demand keeps moving.

Closer to home, the picture is similar. In ZIP 29585, which covers Pawleys Island including Litchfield, the Real Estate Data Aggregator counted 30.2% of homes going under contract within two weeks of listing in the three months ending July 31, 2026. That share is up 9.3 points from the same period a year before. Nearly 3 in 10 well-positioned homes did not sit long.

Homes for sale in ZIP 29585 fell 32.2% from a year earlier, the Real Estate Data Aggregator found. Fewer choices tend to concentrate buyer attention on the homes that are priced and presented well.

Murrells Inlet and Garden City Beach

ZIP 29576, which covers Murrells Inlet and Garden City Beach, tells a similar story. The Real Estate Data Aggregator counted 377 homes sold in the three months ending July 31, 2026, up 34.6% from the same period in 2025. Homes for sale dropped 27% over that same year. Supply fell; sales rose.

The median sale price in ZIP 29576 came in at $390,000, down 4.9% from a year before, per the Real Estate Data Aggregator. Prices dipped a little. Volume did not. That combination usually means buyers are active but selective about price.

A note on these two ZIP codes: Murrells Inlet and Garden City Beach each straddle the Horry County and Georgetown County line. County affects property taxes and school assignment. I can tell you which side a specific address sits on. The ZIP code numbers above do not sort that for you.

The wider rate picture

Nationally, Realtor.com reported that price cuts hit 20.8% of listings in September, the highest share since October 2022. Active listings grew 5.5% year over year, topping 1.16 million homes for sale, Realtor.com found. Redfin reported that 21% of U.S. home sellers dropped their asking price in the four weeks ending September 20.

Those are national figures. This market is not moving in lockstep with them. Supply here fell sharply while sales rose. That is a different condition than the national one.

The Federal Housing Finance Agency reported U.S. house prices up 2.6% from July 2025 to July 2026. Redfin put annual U.S. price growth at 3.7% in August, the fastest in a year. Both figures describe the country as a whole, not any one street in Pawleys Island or the Inlet.

What this means for sellers and buyers here

For sellers, the data shows that well-priced homes in ZIP 29585 are still moving quickly. Nearly a third went under contract within two weeks, per the Real Estate Data Aggregator. Pricing matters more when rates are high, because buyers are doing more math.

For buyers, months of supply in ZIP 29585 sat at 3.5 months and in ZIP 29576 at 3.6 months, both down sharply from a year before, per the Real Estate Data Aggregator. Less inventory means less time to decide on a home you want.

One more thing worth saying plainly: a ZIP code number is an average of many streets, many price points, many conditions. Creek-front and marsh-front homes in Murrells Inlet read differently from interior lots. A home on the island in Pawleys Island reads differently from a mainland Pawleys address. The ZIP code does not sort that. I can.