Existing-Home Sales Have Banner 2016, Hitting Decade High

Existing-home sales had a banner 2016, amounting to 5.45 million—an increase from 5.25 million in 2015 and a decade-high from 6.48 million in 2006, according to the National Association of REALTORS® (NAR). Overall, 2016 was a “good year for the housing market,” says NAR Chief Economist Lawrence Yun.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” Yun says. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.

“While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end,” says Yun.