US existing home sales rise as inventory tumbles to record low



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US existing home sales rise as inventory tumbles to record low

In context of an over-stressed US economy which seemed to be looking for directions amid a record rise in pandemic cases this winter, the National Association of Realtors had issued a statement later last week saying that the US housing market had been on cloud nine in December as US existing home sales rose unexpectedly last month despite a high-flying house prices, largely due to a steep lack in inventories which fell to a record low last month.

In point of fact, a rise in US existing home sales in December came as a surprise to many as surging home prices was expected to deescalate the housing market’s growth momentum, nonetheless, as a pandemic resurgence began to wreak havocs on US economy later last year, tens of thousands of Americans had left densely populated US cities and sought shelters in the suburbs alongside countryside, while sharp rises in work-from-home employees might have backed a roaring US housing market, suggested analysts.

US existing home sales flesh up last month amid record low mortgage rate

Apart from that, a record low mortgage rate alongside possibilities of a near-zero benchmark borrowing cost from the US Federal Reserve at least until late-2023, had also prompted a large number of buyers to cash in on a US housing market which would likely to run out of inventories in an approximated 1.9 months.

In tandem, according to data from the National Association of Realtors, US existing home sales rose by 0.7 per cent to a seasonally adjusted 6.76 million in December, beating an analysts’ forecast of 6.55 million units, while on a year-on-year basis, exiting home sales skyrocketed 22.2 per cent in December compared to the same time a year earlier.

On top of that, on an annualized basis, US existing home sales had hit a fourteen-year high of 5.64 million in 2020, a level never seen since 2006. Meanwhile, median of US existing house prices surged as much as 12.9 per cent in December compared to the same time a year earlier, while overall house prices stepped up by a whopping 9 per cent in 2020, data from National Association of Realtors revealed.