US Home Sales Reach 15-Year High with 6.12 Million Transactions Last Year

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Last year, the U.S. housing sales market was the most active in 15 years, with the number of transactions exceeding 6.1 million. However, this year, it is expected that the market heat will cool down due to rising mortgage rates.

According to the Wall Street Journal (WSJ) on the 20th (local time), the National Association of Realtors (NAR) announced that the number of existing home sales in 2021 increased by 8.5% from the previous year to 6.12 million transactions. This is the largest volume since 2006. WSJ reported, "The highest record in 15 years," adding that "ultra-low interest rates and the expansion of remote work sharply increased demand, fueling competition in the housing market."

The median price of existing homes sold last year reached $346,900 (approximately 413.16 million KRW), marking an all-time high. This represents a 16.9% surge compared to one year earlier, the largest increase in 22 years.

However, experts expect the market heat to subside this year. Lawrence Yun, Chief Economist at NAR, stated, "The rise in mortgage rates will be a burden on home sales this year." In December of last year, existing home sales decreased by 4.6% from the previous month and by 7.1% compared to the same month the previous year.

Nonetheless, since housing demand remains strong, there is an analysis that some buyers may move to purchase homes before interest rates rise. Chief Economist Yun said, "Demand is still strong."

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