Existing Housing Demand Soars Due to COVID-19... US Monthly Sales Volume Hits 14-Year High

Existing Home Sales in October Increase by 4.3%... Impact of Low Interest Rates and Expanded Remote Work

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Wall Street Journal (WSJ) and others reported on the 19th (local time) that the existing home sales in the United States last month reached the highest level in 14 years.

According to the report, the National Association of Realtors (NAR) announced that existing home sales in the U.S. for October increased by 4.3% (annualized) compared to the previous month, totaling 6.85 million units. This is the highest since February 2006 and marks the longest period of increase in seven years, with five consecutive months of growth.

Mark Zandi, Chief Economist at Moody's Analytics, said, "Nothing is more surprising than single-family homes during the pandemic," referring to the fact that people can work remotely, and described it as a "fundamental change in housing preferences."

Accordingly, the prices of homes over $1 million (1.114 billion KRW) have more than doubled within a year, highlighting the rise in high-end housing prices. WSJ explained that this is due to historically low mortgage rates and the spread of remote work caused by the COVID-19 pandemic.

However, some experts warned that the housing market heat might cool down next year as temporary policies such as mortgage forbearance expire. Nevertheless, WSJ also reported optimistic views that demand will remain strong as the millennial generation enters the home-buying age.

This content was produced with the assistance of AI translation services.