Pending home sales in the South saw a modest uptick in August, according to the National Association of Realtors (NAR).
- Pending home sales rose to an index of 83.6, a 0.1% increase from July but is still the second-lowest level recorded in the region this year.
- Year-over-year, the South is down 5.3% in August but continues to rank as the highest-performing region in the country.
Nationally, the Pending Home Sales Index (PHSI) rose 0.6% to 70.6, outpacing economists’ expectations of 0.3% growth.
- In the Midwest, the index jumped 3.2% to 70.0, mirroring a similar 3.2% rise in the West, where the index hit 58.
- The Northeast saw a sharp decline, with the index dropping 4.6% to 61.6.
What They’re Saying: Lawrence Yun, NAR’s chief economist, said the slight rise in pending sales is tied to improved housing affordability as mortgage rates dipped to 6.5% in August. “A slight upward turn reflects a modest improvement in housing affordability,” Yun noted. “However, contract signings remain near cyclical lows even as home prices keep marching to new record highs.”
Bottom Line: Despite the slight gains, housing market activity remains tepid, with contract signings still far below pre-pandemic levels. Affordability challenges continue to weigh on the market, even as interest rates slightly ease.
