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Friday, January 22, 2021

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...

Source: Bloomberg

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...

Source: Bloomberg

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.

https://www.zerohedge.com/personal-finance/2020-existing-home-sales-highest-2006-unhealthy-market

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