Southern Bancorp CEO Signals Resilient Housing Market with Rising Average Home Prices

Southern Bancorp's chief executive confirmed a measurable uptick in average home prices during a recent earnings call, marking a reversal from the modest declines observed in late 2024. The CEO noted that regional average home prices rose 2.3% in the final quarter of 2025, reaching $348,700, up from $340,900 in the prior quarter. This increase is attributed to sustained demand from first-time buyers and a continued shortage of homes on the market, particularly in suburban and rural areas served by the bank’s branches. The data suggests growing momentum in the housing sector, with Southern Bancorp’s loan origination volume rising 14% year-over-year in Q4 2025. This performance underscores the bank’s expanding role in mortgage lending, especially for borrowers in underserved markets. The CEO emphasized that rising home prices are not solely driven by speculative activity but reflect underlying fundamentals such as job growth and demographic shifts. Despite elevated mortgage rates, which averaged 7.1% in Q4, refinancing activity remained subdued while purchase loans accounted for 78% of all mortgage originations—indicating that buyers are entering the market with long-term commitment rather than short-term speculation. The bank’s non-performing loan ratio held steady at 0.9%, signaling strong credit quality amid the pricing trend. This shift is expected to influence Southern Bancorp’s earnings trajectory, with management projecting a 6% increase in net interest income for 2026. The broader implications extend to regional economies, where rising home values could stimulate construction activity and local tax revenues. Investors are closely monitoring these developments as a potential indicator of sustained consumer confidence.