U.S Existing Home Sales Gained 0.7% in December, 2020 Sales Highest Since 2006

U.S. existing home sales rose 0.7% from November to a seasonally-adjusted annual rate of 6.76 million in December, according to National Association of Realtors press release. The existing home sales totaled 5.64 million in 2020, up 5.6% from 2019, the most since 2006  

• Total home sales rose 22.2% year over year from 5.53 million in December 2019
• The median existing-home sales price was $309,800, up 12.9% from a year ago.
• Housing inventory shrink 16.4% from November to 1.07 million and down 23% from a year ago.
• Unsold inventory hit an all-time low of 1.9-month supply, down from 2.3 months in November and below the 3.0-month figure in December 2019 
• First-time buyers accounted for 31% of sales in December, the same as 2019 but down 32% from November 2020.
• Home sales momentum is projected to carry into 2021 as more buyers expect to enter the market.
• Home sales is likely to be supported by low mortgage rates which are expected to hover near record lows of around 3%”
• Additional stimulus and vaccine distribution is also likely to support home sales.

SPDR S&P Homebuilders ETF is currently gaining. XHB is up 0.047%