US contract signings to buy homes hits record for December
The number of Americans who signed contracts to buy homes declined slightly for the fourth straight month, but it was still a record high for December
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The number of Americans who signed contracts to buy homes declined slightly for the fourth straight month, but it was still a record high for December.
The National Association of Realtors index of pending sales dipped 0.3% to 125.5 in December, an all-time high, according to the Friday report. An index of 100 represents the level of contract activity in 2001. It was the fourth straight monthly decline, but contracts signings last month were up 21.4% over December 2019.
Contract signings are considered a barometer purchases that will take place the next one to two months. It's not always reflective, but Friday's report would suggest a strong winter for the housing market.
Thanks to a sizzling summer market that continued into fall, the housing market has largely weathered the economic downturn, even with a huge spring decline due to the coronavirus outbreak.
Historically low interest rates are drawing prospective buyers into the market, but prices for both existing and new homes have risen significantly the past year as supply remains near all-time lows.
The median sales price for an existing home was $309,800 in December, up 12.9% from a year ago. Prices for a new home have risen about 8% in the past year, some of that because of the sharp increase in the cost of framing lumber.
Mortgage finance giant Freddie Mac reported Thursday that the average rate on the 30-year fixed-rate home loan remained near record lows at 2.73%.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.