The real estate market has recently seen a slowdown in the number of houses under contract for sale, but one region of the United States is seemingly unaffected by this trend. Recent reports suggest that the South continues to see an increase in home sales this year.
A recent report from the National Association of Realtors revealed that the number of houses that were sold dropped 2.5 percent in January from December, Realtor.com reported. The said decline in the percentage of home sales last month was said to be due to a number of factors.
Many people were affected by the winter storm Jonas, which greatly impacted several parts of the country. However, it appears that the decline in the stock market and the decrease in the supply of houses for sale also affect these data.
According to the publication, there is a limited number of homes for sale in the U.S., which means that prices are higher as compared to previous months and interested buyers are only given limited options to choose from.
"We should see another year of growth, but not as much as last year because the [inadequate] supply of homes will limit that," said the publication's chief economist Jonathan Smoke.
However, one area of the U.S. remains high on the real estate market -- the South. The publication noted that the increase in sales in the Southeast may be due to the winter storm and also because of its opportunities.
"The south is still relatively affordable and has new job growth," said real estate and finance professor Susan Wachter.
As previously reported here on Realty Today, location and job opportunities are one of the things homebuyers factor in when looking for a new house.
In turn, cities which had better weather and job opportunities have seen an increase in housing prices. The rise in the prices of homes was noted in cities such as Portland, San Francisco and Denver.