Existing-home sales in US reach highest level in 14 years

Sales of previously owned homes in the US rose in 2020 to the highest level since 2006, as ultra-low interest rates and remote work during the pandemic increased homebuying demand. 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.

The December sales marked a 22% increase from a year earlier.

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.

December 2020 saw existing-home sales in the Northeast climb 4.5%, recording an annual rate of 930,000, a 27.4% increase from a year ago. Existing-home sales in the South increased 1.1% to an annual rate of 2,860,000 in December, up 20.7% from the same time one year ago.

Existing-home sales in the Midwest were unchanged, recording an annual rate of 1,590,000 in December, but up 26.2% from a year ago. Existing-home sales in the West fell 1.4% from the month prior, recording an annual rate of 1,380,000 in December, a 17.9% increase from a year ago.

But nationwide supply remains a challenge. In December, there were a record low 1.07 million previously owned homes on the market, down 23% from a year ago.