Sales of previously owned homes increased in 2020 to the highest level since 2006 as ultra-light interest rates and remote labor 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 Friday. December sales were up 22% from the previous year.
Existing home sales reached 5.64 million in 2020, 5.6% more than in 2019 and the highest level since 2006 rate of 6.48 million, NAR said.
The Covid-19 pandemic transformed the housing market in 2020, as home sales fell in the spring due to widespread restrictions on where they took refuge and then quickly rebounded in the summer. and autumn. At a bright spot for the U.S. economy, strong demand is expected to continue this year, which will stimulate construction and sales of furniture and household items.
“Homeowners are smiling because they see price increases,” said Lawrence Yun, chief economist at the NAR. “It’s just the lack of inventory that holds back even bigger home sales.”