After a brief pullback in December, homebuyers returned to the market, although they are still being hampered by record low supply.
Closed sales of existing homes in January increased 0.6% compared with December, according to the National Association of Realtors.
Sales ended the month at a seasonally adjusted, annualized rate of 6.69 million units, which was 23.7% higher compared with January 2020. That is the second-highest sales pace since April 2006.
“Home sales are continuing to play a part in propping up the economy,” said Lawrence Yun, chief economist for the NAR. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”