US Home Contract Signings Set Record High for December

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A sold location  successful  seen successful  Orlando, Fla., connected  Dec. 8, 2020. (John Raoux/AP Photo)

A sold location successful seen successful Orlando, Fla., connected Dec. 8, 2020. (John Raoux/AP Photo)

SILVER SPRING, Md.—The fig of Americans who signed contracts to bargain homes declined somewhat for the 4th consecutive month, but it was inactive a grounds precocious for December.

The National Association of Realtors’ scale of pending location income dipped 0.3 percent to 125.5 successful December, an all-time high, according to the Jan. 29 report. An scale of 100 represents the level of declaration enactment successful 2001. Contract signings roseate 21.4 percent implicit December 2019.

Contract signings are considered a barometer of purchases that volition instrumentality spot successful the adjacent 1 to 2 months. While it’s not ever wholly accurate, the study would suggest a beardown wintertime for the housing market.

Regionally, declaration signings were fundamentally level successful the West and South, portion they declined 3.6 percent successful the Midwest. Signings roseate 3.1 percent successful the Northeast.

Thanks to a sizzling summertime that continued into fall, the lodging marketplace has mostly weathered the economical downturn, adjacent with a immense outpouring diminution owed to the coronavirus outbreak.

Historically debased involvement rates are drafting prospective buyers into the market, but prices for some existing and caller homes person risen importantly successful the past twelvemonth arsenic proviso remains adjacent all-time lows.

The median income terms for an existing location was $309,800 successful December, up 12.9 percent from a twelvemonth ago. Prices for a caller location person risen astir 8 percent successful the past year, immoderate of that due to the fact that of a crisp summation successful the outgo of framing lumber.

Mortgage concern elephantine Freddie Mac reported connected Jan. 28 that the mean complaint connected the 30-year fixed-rate location indebtedness remained adjacent grounds lows astatine 2.73 percent.

By Matt Ott

The Associated Press

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