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U.S. existing home sales reach their highest level in 14 years

US home sales in 2020 surged to their highest levels in 14 years, boosted by ultra-low interest rates and pandemics. It robbed buyers of more spacious homes to accommodate telecommuting.

Strong home sales in the second half of this year surprised many economists, but were stranded by companies closed during the Covid-19 pandemic, providing an unusual bright spot for an economy with increased unemployment.

Pandemic unemployment has been concentrated in low-wage industries, and resources for high-wage households and new homes have better survived the recession. The pandemic has led many of them to leave big cities for suburbs and small towns, but the lowest borrowing rates ever made it easier to make trading decisions. When shelter-in-place restrictions were relaxed, sales grew in June and sales have rarely been flagged since then.

“It’s entirely a pandemic,” said Brittany McCreeley, who bought his first home in York, Pennsylvania, a four-bedroom stone farmhouse after leaving the Chicago area with her husband last month. “We’re glad we didn’t borrow anymore. We always wanted to buy.”

According to the National Association of Realtors, home sales in December increased 0.7% from November to a seasonally adjusted annual rate of 6.76 million. December sales were up 22% year-on-year.

U.S. existing home sales reach their highest level in 14 years

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