The South remains a powerhouse in the U.S. housing market, with pending home sales soaring in November, according to recent data from the National Association of Realtors (NAR).
By The Numbers: The Southern region saw a significant jump to an index of 94.5, up 5.2% from October. This is the highest level since March and marks an 8.5% increase from November of the previous year.
- Midwest: A modest increase of 0.4% brought the index to 78.1, still trailing behind the South by over 15 points.
- Northeast: Experienced a decline with a 1.3% drop, settling at an index of 67.8.
- West: Saw a slight uptick of 0.5%, reaching an index of 64.3.
Nationally: The index climbed 2.2% to 79.0, driven largely by the Southern surge.
What They’re Saying: Lawrence Yun, NAR Chief Economist, note the readjustment of both buyers and sellers to the new normal, “Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory… Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.”
Why It Matters: The rise in pending sales in the South could signal a broader recovery in the housing market, particularly as the region has been a bellwether for housing trends.
- The data suggests that both buyers and sellers are adapting to prevailing market conditions, with higher inventory levels potentially leading to more balanced market dynamics.
Bottom Line: The South’s housing market is leading the charge in a national uptick in pending home sales which means the South may have to continue to do the heavy lifting in keeping the housing market afloat.
