{"id":2535,"date":"2021-09-29T15:00:13","date_gmt":"2021-09-29T15:00:13","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2021\/09\/29\/homebuyers-drawn-to-cheaper-areas-in-midwest-and-south\/"},"modified":"2025-03-13T02:39:14","modified_gmt":"2025-03-13T02:39:14","slug":"homebuyers-drawn-to-cheaper-areas-in-midwest-and-south","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2021\/09\/29\/homebuyers-drawn-to-cheaper-areas-in-midwest-and-south\/","title":{"rendered":"Homebuyers drawn to cheaper areas in Midwest and South"},"content":{"rendered":"\n<p>Pending home sales rose in August, following two consecutive months of decline, according to the <strong>National Association of Realtor\u2019s pending home sales index<\/strong> <a href=\"https:\/\/www.nar.realtor\/newsroom\/pending-home-sales-recover-8-1-in-august\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> released on Wednesday. And homebuyers with flexibility are keen on more moderately priced regions within the Midwest and South, the report found.<\/p>\n\n\n\n<p>Homebuyer contract signings in the U.S. rose 8% month-over-month from July to August, though the figure was still 8.3% lower than the same time last year. The sequential increase caused the <strong>NAR Pending Home Sales Index<\/strong> (PHSI) to rise 8.1% to 119.5, its highest level <a href=\"https:\/\/cdn.nar.realtor\/sites\/default\/files\/documents\/phs-08-2021-pending-home-sales-09-29-2021.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">since January 2021<\/a>.<\/p>\n\n\n\n<p>\u201cIncreased inventory of homes for sale, near historic low mortgage rates and favorable demographics means more housing demand,<meta charset=\"utf-8\">\u201d <meta charset=\"utf-8\">Odeta Kushi, the <strong>First American deputy chief economist<\/strong> said in a statement. <meta charset=\"utf-8\">\u201cThis is a strong purchase market and the uptick in inventory is bringing back some buyers who pulled back during peak frenzy.\u201d<\/p>\n\n\n\n<p>Despite increased inventory and still-low mortgage rates, the purchase of a home still is beyond the financial reach of many would-be homebuyers, as home price gains are roughly three times wage growth, according to NAR\u2019s chief economist Lawrence Yun.<\/p>\n\n\n\n<p>\u201cThe more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising,\u201d Yun said in a statement. \u201cThis can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places.\u201d<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.housingwire.com\/articles\/how-brokers-can-help-todays-unique-borrower\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How brokers can help today\u2019s unique borrower<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-text-align-center\">Today, more borrowers are self-employed, work remotely and have multiple streams of income. For brokers, working with these borrowers can be complicated because they require unique processes. HousingWire recently spoke with Bill Dallas, President of Finance of America Mortgage, to discuss how brokers can leverage technology to accommodate today&#8217;s average homebuyer.<\/p>\n\n\n\n<h6 class=\"has-text-align-center wp-block-heading\" id=\"h-presented-by-finance-of-america\"><strong>Presented by: <\/strong><strong>Finance of America<\/strong><\/h6>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>The homebuyer trend is illustrated in Realtor.com\u2019s latest report on the hottest<a href=\"https:\/\/www.housingwire.com\/articles\/these-are-the-hottest-housing-markets-in-america\/\" target=\"_blank\" rel=\"noreferrer noopener\"> housing markets<\/a> in the U.S. Of the 40 largest metros, the metros with the largest year-over-year improvement, as of Sept. 27, were <a href=\"https:\/\/www.housingwire.com\/articles\/48468-these-are-the-best-housing-markets-for-first-time-buyers\/\" target=\"_blank\" rel=\"noreferrer noopener\">Orlando-Kissimmee-Sanford<\/a>, Tampa-St. Petersburg-Clearwater, Nashville-Davidson-Murfreesboro-Franklin, Jacksonville, Florida and <a href=\"https:\/\/www.housingwire.com\/articles\/regardless-of-price-austin-homes-still-flying-off-the-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Austin-Round Rock<\/a>.<\/p>\n\n\n\n<p>While all regions saw an increase in pending home sales, the Midwest and the South had the largest increases at 10.4% and 8.6%, respectively. Yet despite these increases the pending home sales index is still lower in all regions than it was a year prior.<\/p>\n\n\n\n<p>\u201cExisting sales were relatively steady from March through August at levels lower than the peaks from late 2020,\u201d <strong>Nationwide<\/strong> senior economist Ben Ayers said in a statement. \u201cFor all of 2021, we expect that existing home sales will be the strongest since 2006 despite widespread tight supply conditions in most local markets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More moderately priced regions of the South and Midwest are experiencing stronger contract activity from homebuyers, according to the latest NAR report<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-2535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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