U.S. Home Sales and Prices Rise in January

Sales of existing homes in the United States increased during January by 0.6% compared with their level in December, data by the National Association of Realtors showed on Friday.

Last month, sales reached a seasonally adjusted annual rate of 6.69 million units, rising by 23.7% on an annual basis, and recording its second-highest increase since April 2006.

According to the National Association of Realtors, home sales continue to play a part in economic recovery.

“With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”

The number of homes available for sale declined by 26% year-on-year to 1.04 million homes last month, leading to a record low supply, which in turn led to an increase in prices.

The existing home median price as shown by January’s sales amounted to $303,900, rising by a record 14.1% compared with the same time of last year.

Yesterday, data revealed that housing starts in the U.S. decreased by 6% to a seasonally adjusted annual rate of 1.58 million units in January, however, building permits, which indicates housing starts within two or three months, rose by 10.4%.