Sales Of Existing US Residences Hit Record High In 2020

The National Association of Realtors® (NAR) said on Friday (Jan. 22) that existing-home sales increased in December, while home sales for last year reached their highest point since 2006, according to a press release.

The median existing-home price for all kinds of dwellings in December was $309,800, marking a 12.9 percent increase from $274,500 in December 2019. According to NAR, December’s countrywide price hike marks 106 consecutive months of year-over-year increases.

“Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic,” NAR Chief Economist Lawrence Yun said in the release. “What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market.”

Overall housing inventory at the conclusion of December was 1.07 million dwellings, which marked a decrease of 23 percent from one year prior. Those who were purchasing homes for the first time comprised 31 percent of sales in December, which was down slightly from 32 percent in November 2020 but steady from the same time in 2019. Seven in 10 residences sold in December 2020 were on the market for under one month.

“To their credit, homebuilders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes,” Yun said in the release.

But Yu noted it will require “vigorous new home construction” this year and next to provide enough supply to keep up with demand.

The news comes as the coronavirus pandemic has been a positive for the real state market. Consumers have been stuck in their homes, and many have a renewed concentration on making sure that their residence is right for them.

At the same time, millennial consumers have dramatically increased the clip of their home purchasing. They are helped by digital tools that make it simpler to find a residence, partake in a digital tour, set up financing, make an offer and close a deal — from their living rooms.