For the first time in five months, existing-home sales in the South have increased, driven by more inventory and falling interest rates, which are helping to lure buyers back into the market.
- Sales in the region rose to an annual rate of 1.79 million in July, marking a 1.1% month-over-month gain. This is the first uptick in the South since February.
The median home price in the South was $372,500, a 2.3% increase from one year ago. Though still elevated, this figure is down slightly from June’s all-time high of $373,400.
Nationally, existing-home sales also showed signs of life, growing 1.3% in July to a seasonally adjusted annual rate of 3.95 million.
- The South continues to dominate the market, accounting for 45.3% of all existing-home sales.
- The Midwest followed at 23%, with the West and Northeast lagging at 19% and 12%, respectively.
Prices: The median existing-home price in July was $422,600, up 4.2% year-over-year. The West continues to lead the nation in home prices, with a median price of $629,000, a 3.4% increase from last year. In comparison, the Northeast came in at $505,100, followed by the South and the Midwest at $372,500 and $321,300, respectively.
Inventory levels also saw an increase. Total housing inventory at the end of July was 1.33 million units, up 0.8% from June and a substantial 19.8% jump from one year ago.
- This figure surpasses the peak inventory levels of the past three years, reflecting a housing market that’s offering more choices for buyers.
What They’re Saying: Despite these encouraging signs, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), remains cautious: “Despite the modest gain, home sales are still sluggish… But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
As more inventory hits the market and interest rates remain favorable, potential homebuyers may continue to find opportunities in what’s still a challenging housing landscape.
