As spring rolls into summer, May data from real estate boards across the southern United States is showing what markets could be heating up.
Pending listings, sales and median sales prices point to three clear winners across the South: Alabama, North Carolina, and Texas. In these markets, an increased number of pending listings paired with higher sales and price growth shows why the South consistently ranks first in pending sales nationwide, according to National Association of REALTORS® data.
Zoocasa analyzed data from almost 20 real estate boards across southern states to compare which areas throughout the South are showing the most potential moving into the summer.
4 Markets Offer Double-Digit Pending Sale Increases
Pending sales measure how many homebuying transactions are in progress at the end of the month. Homes go under contract before they are sold, meaning pending sales often lead existing home sales for an area by a month or two, according to the NAR.
NAR data found that the southern United States continued to lead the nation in its Pending Home Sales Index number in May. Composed of 15 states, the South region sits at 90.8–the highest of all four regions, and 14 points higher than the national average of 76.8.
Although many regional real estate boards do not publicly post pending sales, of those that do, Zoocasa was able to suss out a few key areas where markets are turning up the heat.
By and large, the Huntsville area in Alabama blew several others out of the water with a whopping 71.8% increase in pending home sales year over year. That’s more than three times higher than the second-hottest market, located in North Carolina.
Just behind North Carolina is the Austin, Texas, metro area, followed by northern Kentucky, both with double-digit pending sale increases.
But when it comes to market health, it’s not just about pending listings. Home prices, inventory, days on market and more all combine to give the full picture. For the most bustling markets in the southern United States, here’s how they compare.
1. Alabama’s Underdog Takeover of the Southern Market
When it comes to why Alabama takes the top spot on this list, the pending sales speak for themselves. There are, however, other factors to consider, such as the median sales price.
For the sixth time in a row, a 2025 report from United Van Lines named Alabama as one of the top states people are moving to in the United States. The report points to affordability, low property taxes and a growing workforce as reasons why people decide to move there.
Statewide, the median sales price is about $279,000, over $150,000, or roughly 35%, below the national average of $429,300. Pair that with rising inventory in several major metros, and buyers have seemingly endless options at their fingertips to find their perfect home.
That being said, the statewide median sales price increased 16% in Alabama in May, meaning prices may not stay affordable for long.
Alongside traditional real estate metrics, another major way to tell market trajectory is the local unemployment rate. The higher the rate, the more people in the area may struggle to make homebuying a reality. For Alabama, every metro sits below the national average of 4.3%, with the Huntsville area coming in lowest at 2.6%, according to the U.S. Bureau of Labor Statistics.
Alabama saw modest losses in several metros in May for closed sales, but statewide, an increase of about 11%. Overall, the upward trend of pending sales could mean Alabama is rising in the ranks of sought-after real estate in the South.
2. North Carolina Shows Consistent Gains in Pending Sales
North Carolina is known in some areas as a “Goldilocks” state–moderate temperatures, comparatively affordable living costs and a diverse mix of people and ideologies. Although Alabama won out in terms of the largest year-over-year change in pending sales, North Carolina had consistent double-digit gains across multiple metros.
The Catawba Valley region came in highest with a 19.6% increase year-over-year in pending sales, trailed by Asheville at 18.7% and 18.2% in Jacksonville.
Sales increased slightly at 1.5% in the Asheville region, but dipped 13.6% in the Catawba Valley area. Despite the decrease in closed sales, the high number of pending transactions could indicate deals just had a hard time making it across the finish line in May.
The Cape Fear area also experienced a 17.7% increase in pending sales, alongside a 10.2% increase in closed sales. Paired with a slightly higher median sales price, Cape Fear comes out as an emerging market for the state.
Jacksonville is on the rise as well, with increases across the board, bringing a 4% higher median sales price and mostly consistent closed sales in May alongside its pending sales increase.
Beyond the housing market, unemployment rates across North Carolina largely trend below the national average, with a statewide average of 3.7%.
All in all, region-focused increased sales activity paired with higher prices means multiple markets across North Carolina are on the up-and-up.
3. Austin Continues to be a Stand-Out Texas Market
Real estate has been a hot commodity in Texas for years due to the state’s economy, relatively affordable cost of living and business-friendly policies.
A 2025 study from HireAHelper estimated that 265,112 people moved to the state between June 2024 and May 2025–that’s almost 730 people a day. Nearly 30% of the moves were due to new jobs or job transfers. Texas boasts the eighth-largest economy among nations worldwide, and some predict it will become the largest data center hub in the United States, bringing ample employment opportunities across the state.
Austin, specifically, has been a major draw for out-of-state transplants, with the local market hitting record-breaking highs in the early 2020s. Today, the market has cooled off, but demand remains steady.
Data from May shows a 14.3% increase in pending sales for the area, alongside a 3.4% increase in closed sales. Additionally, the median sales price has remained relatively steady at $440,000. Unemployment is also the lowest out of the state’s major metros at 3.5%.
In the midst of all this, active listings in the metro area dropped 16.6% in May, indicating a potential drop in inventory despite rising sales interest in the area. Combined, these factors point to Austin’s continued reputation as a force of nature within the Texas real estate industry.
The largest Texas metro, Houston, also experienced a 5.8% increase in pending sales in May, although sales dipped slightly by 3.2%. Prices remained stable in May at $340,000, although unemployment was the highest of the four metros at 4.6%.
Statewide, Houston remains a steady market with prices under the national median, a stable number of listings and fewer sales, potentially opening up room for buyers to have more future negotiation power.
The State of the Southern Market
Across the South, Alabama saw the largest closed sale gains of any state at 11.7%, as well as the highest median sales price change at 16.6%. Even so, Alabama comprises a comparatively small portion of overall sales in the southern United States.
Larger states such as Texas and Florida posted more modest gains in closed sales, with 1.2% and 0.6% increases, respectively. The largest loss in statewide sales was actually in Kentucky, with a 34% decrease year-over-year despite consistent prices and a relatively balanced amount of inventory.
Arkansas experienced the second-largest loss in closed sales with an 4% decrease, while prices increased 1.8%–perhaps pointing to a mismatch between what sellers want for their homes and what buyers are willing to pay.
Active listings saw the biggest upset in Oklahoma with a 19.2% increase, while Maryland had a 16.4% decrease year-over-year.
Nationwide, southern states in May had the second-largest increase in affordability, according to the NAR, with an 8.4% gain.
The Final Verdict: Markets to Keep an Eye On
High year-over-year increases in pending sales paired with rising prices point to potentially massive gains on the horizon for some of the South’s standout states.
Leading the pack are Alabama and North Carolina, followed by Texas. Combined, these states are just three of several showcasing continued growth in the southern United States residential market.
Thinking of moving to the southern United States? Zoocasa has agents nationwide who can help you find your perfect place. Reach out today.
Methodology
Data for this report was sourced from recent board of REALTORS® data. Exact boards are detailed in graphic descriptions. Data was sourced from statewide REALTOR® associations when possible. If statewide data was unavailable, data was sourced from the largest board in the state with publicly available data.
