Existing-home sales in the South increased by 2.9% in October to a seasonally adjusted annual rate of 1.77 million units, marking the first monthly rise in three months.
- The region continues to dominate the national housing market, accounting for 44.7% of all existing-home sales.
Why It Matters: October’s gains reflect a broader recovery in the U.S. housing market, with national sales climbing 3.4% to 3.96 million units annually—the highest level since July and better than the 2.6% increase economists expected.
- The Midwest saw the largest jump in sales, up 6.7%, while the Northeast and West also posted modest growth of 2.2% and 1.3%, respectively.
Price: In the South, the median home price rose 0.9% year-over-year to $361,200—the slowest growth among all regions. By comparison, the Northeast saw the largest price increase at 7.6%, followed by the Midwest (7.2%) and the West (4.4%).
National housing inventory rose 0.7% from September and 19.1% year-over-year to 1.37 million units. Despite the increase, unsold inventory dropped slightly to a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months a year ago
What They’re Saying: Lawrence Yun, NAR Chief Economist: “The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions. Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
Bottom Line: The October rebound suggests the housing market may be stabilizing, but affordability remains a challenge, particularly for first-time buyers facing elevated mortgage rates and slowing price growth in key regions like the South.
