Home contract signings hit record
The number SILVER SPRING, MD.— of Americans who signed contracts to buy homes declined last month butwas still a record high for November when a seasonal slow down 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. Itwas 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 andWest — declined from October to November but are up double-digits yearover-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 alltime lows.
U.S. home prices jumped 7.9% in October, the most June 2014, according to S&P CoreLogic CaseShiller 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%.