Home sales increased in 2020 to the highest level since 2006, as ultra-low interest rates and remote work during the pandemic increased demand for home purchases.
Sales of existing homes increased 0.7% in December from November, to a seasonally adjusted annual rate of 6.76 million, the National Association of Realtors reported on Friday. December sales marked a 22% increase over the previous year.
Sales of existing homes totaled 5.64 million in 2020, an increase of 5.6% over 2019 and the highest level since the 2006 pace of 6.48 million, NAR said.
The Covid-19 pandemic transformed the housing market in 2020, when home sales plummeted in the spring due to widespread restrictions on shelters at the site and then recovered quickly in the summer and fall. On a positive note for the US economy, strong demand is expected to continue this year, spurring more home construction and sales of furniture and household products.
“Owners are smiling because they are seeing price increases,” said Lawrence Yun, chief economist at NAR. “It is only the lack of inventory that is preventing sales of even bigger homes.”