Southern United States Defies Housing Trends

Despite the general downward trend in the housing market throughout the United States, the Austin Business Journal reports that Texas and other southern states are managing to enjoy a slight increase in sales. 

The Austin Business Journal sites a report released by the National Association of Realtors, which indicated tat the total home sales in the United States fell by 2.2% while home sales in the South have gone up by 0.5%.  The data, which was gathered in August for the month of July, included a number of states considered to be in the South region.  These include:

•    Alabama
•    Arkansas
•    Delaware
•    D.C.
•    Florida
•    Georgia
•    Kentucky
•    Louisiana
•    Maryland
•    Mississippi
•    North Carolina
•    Oklahoma
•    South Carolina
•    Tennessee
•    Texas
•    Virginia
•    West Virginia

The report also indicated that the prices of homes in the South region have not fallen as greatly as the prices of houses throughout the country.  In fact, whereas prices throughout the country fell 8.9%, the prices in the South region fell only 3.4%.  While no one wants to see a fall in prices, the fact that the fall in the South was less than half of the nationwide average is good news for those trying to sell their homes in the area.

“August sales reflect higher interest rates before the government takeover of Freddie Mac and Fannie Mae,” Lawrence Yun, NAR chief economist, told the Austin Business Journal. “With higher loan limits and a beefing up of the FHA program, all the mechanisms have been falling into place to increase mortgage availability.  However, home sales will be constrained without a freer flow of credit into the mortgage market."