Despite the global pandemic, or perhaps because of it, home sales clocked their best year since 2006.
The annual pace of existing home sales in December increased to 6.76 million, seasonally adjusted, up 0.7 percent from November and 22 percent year-over-year, according to the National Association of Realtors’ monthly report.
It was a strong finish to a year that saw 5.64 million existing homes change hands, up 5.6 percent from 2019 to the highest level since 2006. Residential construction also posted the busiest year since 2006, though homebuilder confidence has begun to wane over the past two months despite record low levels of housing inventory.
The supply of existing homes for sale hit another historic low with 1.07 million units on the market. At the current sales pace, those homes will be sold within 1.9 months. Seventy percent of homes sold in December were listed for less than a month.