Existing-Home Sales Reach 14-Year High in October
New York, NY, November 20, 2020-"U.S. home sales rose to a 14-year high last month, a rare bright spot for the economy as ultra low borrowing costs and the sudden shift in living preferences during the pandemic power the market,” reports the Wall Street Journal.
“October’s gains marked the fifth straight monthly increase and one of the best stretches for the housing market in several years. While home sales showed some signs of life before the coronavirus outbreak, they are running much hotter now.
“‘In the pandemic, nothing has been more surprising-positively surprising-than single-family housing,’ said Mark Zandi, chief economist at Moody’s Analytics. As more Americans are working remotely, he said, ‘this is a fundamental shift in underlying housing preferences.’
“Some families are leaving large cities or other crowded living circumstances in response to Covid-19. They have been willing to splurge on single-family homes despite a troubled job market and soaring home prices. Buyers have been aided by mortgage rates now at their lowest level since Freddie Mac began tracking them in 1971, the agency said on Thursday, which could drive sales momentum into next year.”