Us home sales cool down for christmas

New York in the snow Photo: Actor212

All major regions of the US saw sales decline in December 2014, according to the National Association of Realtors, whose pending home sales index decreased 3.7 per cent at the end of 2014.

The decline occured despite interest rates being at their lowest level of 2014.

Lawrence Yun, NAR chief economist, says fewer homes available for sale and a slight acceleration in prices likely led to December’s decline in contract signings: "Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country. With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up."

He adds: "More jobs, increasing consumer confidence, less expensive mortgage insurance and new low down payment programs coming into the marketplace will likely lead to more demand from first-time buyers."

Indeed, conditions have improved significantly compared to 12 months ago, with pending sales remining above year-over-year levels in December 2014 for the fourth month in a row.