Previously owned homes sales rose to their highest levels since 2006 in 2020 as ultra-low interest rates and remote working increased demand for housing during the pandemic.
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 Friday. December sales were 22% higher than a year earlier.
Existing home sales were 5.64 million in 2020, an increase of 5.6% from 2019 and the highest since 2006’s pace of 6.48 million, NAR said.
The Covid-19 pandemic changed the housing market in 2020, as home sales plummeted in the spring due to widespread shelter-in-place restrictions, then quickly recovered in the summer and fall. On a bright spot for the U.S. economy, strong demand is expected to continue this year, leading to increased home construction and sales of furniture and household goods.
“Homeowners are smiling as they see price increases,” said Lawrence Yun, NAR chief economist. “It’s just a lack of inventory holding back even bigger home sales.”