Sales of previously owned homes rose to the highest level since 2006 in 2020 as low interest rates and remote employment during the pandemic increased demand for home buying.
Sales of existing homes rose 0.7% in November 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 a year earlier.
Sales of existing homes amounted to 5.64 million in 2020, an increase of 5.6% over 2019 and the highest level since the 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 in the shelter and then quickly recovered again in the summer and fall. In a bright spot for the U.S. economy, strong demand is expected to continue this year, which will spur more home construction and sales of furniture and household goods.
“Homeowners smile because they see price increases,” said Lawrence Yun, chief economist at NAR. “It’s just a lack of inventory that is holding back the larger home sales.”