Sales of previously owned homes rose in January, as a shortage of homes for sale continued to push home prices higher.
Existing-home sales rose 0.6% in January from December to a seasonally adjusted annual rate of 6.69 million, the National Association of Realtors said Friday. The January sales marked a 23.7% increase from a year earlier.
Economists surveyed by The Wall Street Journal expected a 2.4% monthly decline in sales of previously owned homes, which make up most of the housing market.
Home sales surged in 2020 to the highest level since 2006, as historically-low interest rates spurred demand and buyers looked for more space. While winter is usually a slower period for home sales, economists say the pandemic disrupted the normal seasonal patterns by pushing home purchases that would have occurred last spring and summer to the fall and winter.
“The housing market continues to remain very strong,” said Lawrence Yun, NAR’s chief economist. “Sales could be even higher, but the inventory is simply not there.”
