Sales of previously owned homes rose in January as the market remained warm during the generally slower winter period and the shortage of homes for sale continued to raise house prices.
Existing home sales rose 0.6% in January from December to a seasonally adjusted annual rate of 6.69 million, the National Association of Realtors said Friday. January sales were up 23.7% from the previous year.
Economists surveyed by The Wall Street Journal predicted a 2.4% monthly drop in sales of previously owned homes, which make up the bulk of the real estate market.
Home sales rose in 2020 to the highest level since 2006 as historically low interest rates boosted demand and buyers were looking for more space. Although winter is usually a slower period for home sales, economists say the pandemic disrupted normal seasonal patterns by pushing home purchases that would have occurred last spring and summer. in autumn and winter.
“The housing market remains very strong,” said Lawrence Yun, chief economist at the NAR. “Sales could be even higher, but the inventory just isn’t there.”