The number of Americans signing contracts to buy previously owned homes unexpectedly rose in December, signaling that foreclosure-driven declines in prices are boosting demand.
The index of pending home resales climbed 6.3 percent to 87.7, the first increase since August, from a revised 82.5 in November, the National Association of Realtors said in a report today in Washington. Other reports showed a record number of houses for sale stood vacant last quarter and property values sank by more than $3 trillion last year.
Builder shares jumped on the increase in contracts and on reports the Obama administration, in seeking to stem record foreclosures, is considering offering government guarantees to mortgage lenders that modify loan terms.
“The biggest gains were in areas with the biggest improvements in affordability,” Lawrence Yun, the group’s chief economist, said in a statement. The NAR’s affordability index reached a record high in December.
Pending resales are considered a leading indicator because they track contract signings. Closings, which typically occur a month or two later, are tallied in the Realtors’ monthly existing-home sales report. That report for January is scheduled to be released Feb. 25.
Purchases of previously owned homes, which account for about 90 percent of the market, climbed 6.5 percent in December from the prior month as foreclosures helped drive median prices down 15 percent from a year earlier.
-Bloomberg.com
more article in www.stockmarketwatch.info
Disclaimer…The subject matters expressed above is based purely on technical analysis and personal opinions of the writer. it is not a solicitation to buy or sell
No comments:
Post a Comment