2020 Existing Home Sales Highest Since 2006 In “Unhealthy Market”
Despite the usual seasonal slowdown expected, Existing Home Sales rose modestly in December (+0.7% MoM vs -1.9% MoM exp), bucking the trend of downturn into year-end…
For the full year, existing-home sales climbed to 5.64 million, up from 5.34 million in each of the prior two years.
This is the highest year-end level for existing home sales since 2006…
The median selling price rose 12.9% in December from a year earlier on an unadjusted basis to $309,800, reflecting more purchases of higher-end properties.
“Homeowners are smiling because they’re seeing price increases,” Lawrence Yun, NAR’s chief economist, said on a call with reporters.
“The frustration is coming from the first-time buyers who don’t have any housing equity and they’re trying to save up for a down payment.
“Today’s market is unhealthy, people are making hurried decisions and prices are rising way above income growth,” Yun said.
Additionally, available inventory declined 23% from a year earlier to 1.07 million units, the NAR said. It would take 1.9 months to sell all the homes on the market at the current pace, also a record low.
Fri, 01/22/2021 – 10:10