Existing-Homes Sales Climb Higher in January 2021 – Up Year-Over-Year by 23.7%

The National Association of Realtors® (NAR) reported that total existing home sales, completed transactions that include single-family homes, townhomes, condominiums, and co-ops, increased 0.6% from December 2020 to a seasonally adjusted annual rate of 6.69 million in January 2021. Sales in total increased year-over-year, up 23.7%. Unsold inventory sits an all-time low of 1.9 months’ supply at the current sales pace, equal to December’s supply and down from a year ago (January 2020) when they were at 3.1 months. The median existing-home price for all housing types in January 2021 was $303,900, up 14.1% from January 2020 ($266,300), with prices increasing in all regions. The January 2021 increase marks the 107th straight months of year-over-year price gains. In prepared remarks Lawrence Yun, NAR’s chief economist said, “Home sales are continuing to play a part in propping up the economy,” Yun said. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.” Yun added that he expects more jobs to return, which will spur homebuying in the coming months. He predicts existing-home sales will reach at least 6.5 million in 2021, even as he says mortgage rates are likely to inch higher due to the rising budget deficit and higher inflation.