In January 2025, the United States faced its coldest weather in 25 years, leading to a significant decline in pending home sales, particularly in the South. The National Association of REALTORS® (NAR) reported a 4.6% drop in contract signings nationwide, with the Southern region experiencing a steep 9.2% decline. Other regions also saw decreases, except for the Northeast, which posted a slight 0.3% increase. The severe weather, combined with high mortgage rates around 7% and elevated home prices, contributed to reduced buyer activity (Yun, 2025).

Despite these challenges, NAR Chief Economist Lawrence Yun remains optimistic, suggesting that a modest decline in mortgage rates could rekindle buyer interest. With rising incomes, increased employment, and a broader selection of homes, the market may recover in the coming months. The average monthly mortgage payment on a $300,000 home has risen by $50 compared to last year, but improving economic conditions may ease affordability concerns (Yun, 2025).

Reference:
Yun, L. (2025, February 27). South bears brunt of falling contract signings in frigid January. REALTOR® Magazine. National Association of REALTORS®. https://www.nar.realtor/magazine/real-estate-news/south-bears-brunt-of-falling-contract-signings-in-frigid-january

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