US Existing Home Sales Hit 14-Year High



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Sales of previously owned homes increased in 2020 to their highest level since 2006, as ultra-low interest rates and remote working during the pandemic increased demand for home purchases.

Existing home sales rose 0.7% in December from November to a seasonally adjusted annual rate of 6.76 million, the National Association of Realtors said on Friday. December sales marked a 22% increase over the previous year.

Existing home sales totaled 5.64 million in 2020, up 5.6% from 2019 and the highest level since the 2006 pace of 6.48 million, NAR said.

The Covid-19 pandemic transformed the housing market in 2020, as home sales plunged in the spring due to widespread shelter-in-place restrictions, then rebounded rapidly in the summer and fall. On a positive note for the US economy, strong demand is expected to continue this year, boosting homebuilding and sales of furniture and household goods.

“Homeowners are smiling because they see price increases,” said Lawrence Yun, chief economist for NAR. “It’s just a lack of inventory that is slowing home sales even more.”

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