U.S. existing-home sales unexpectedly increase in December

The National Association of Realtors (NAR) announced on Friday that the U.S. existing home sales rose 0.7 percent m-o-m to a seasonally adjusted rate of 6.76 million in December from a revised 6.71 million in November (originally 6.69 million).

Economists had forecast home resales decreasing to a 6.55 million-unit pace last month.

In y-o-y terms, existing-home sales surged 22.5 percent in December

According to the report, two of the four major regions recorded m-o-m gains in existing-home sales in December but all four regions rose at double-digit rates from one year ago. The median existing-home price for all housing types in December was $309,800, up 12.9 percent from December 2019. Single-family home sales stood at a seasonally-adjusted annual rate of 6.03 million in December, up 0.7 percent from 5.99 million in November, and up 22.8 percent from one year ago. The median existing single-family home price was $314,300 in December, up 13.5 percent from December 2019. Meanwhile, existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 730,000 units in December, up 1.4 percent from November and up 17.7 percent from one year ago. The median existing condo price was $272,200 in December, an advance of 6.9 percent from a year ago.

Existing-home sales totaled 5.64 million in 2020, up 5.6 percent y-o-y. That was the highest level since 2006.

"Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic," noted Lawrence Yun, NAR's chief economist. "What's even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market," he added.