Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

US home contract signings at record levels in November

The number of Americans who signed contracts to buy homes declined again last month, but was still a record high for November, traditionally the beginning of the seasonal slowdown in the real estate market

Via AP news wire
Wednesday 30 December 2020 10:00 EST

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 last month, but was still a record high for November when a seasonal slowdown traditionally seeps into the real estate market.

The National Association of Realtors said Wednesday that its index of pending sales fell 2.6% to 125.7 in November, down from October's revised reading of 129.1. An index of 100 represents the level of contract activity in 2001. It was the third straight monthly decline.

Contract signings are a barometer of finalized purchases over the next two months, so Wednesday's report may preview what could be a strong winter for the housing market.

Contract signings are still 16.4% ahead of where they were last year, thanks to a big summer rebound that followed a spring washout due to the coronavirus outbreak. Contract signings in all four regions — the Northeast, South, Midwest and West — declined from October to November but are up double-digits year-over-year through last month.

Historically low interest rates are drawing prospective buyers into the market, but home prices have risen significantly the past year as supply remains near all-time lows.

U.S. home prices jumped 7.9% in October, the most June 2014, according to S&P CoreLogic Case-Shiller 20-city home price index released Tuesday.

Mortgage finance giant Freddie Mac reported last week that the average rate on the 30-year fixed-rate home loan remained at a record low 2.66%.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in