US: Existing home sales rebound in May - Wells Fargo

Analysts from Wells Fargo, explained that US home sales rebounded in May as unusually lean inventories continue to restrain sales. According to them, houses are selling quickly and prices are rising solidly as there are fewer home sales to choose from. 

Key Quotes: 

“After falling 2.5 percent in April, existing home sales rebounded 1.1 percent in May. Sales in both months were restrained by lean inventories, which are likely deterring some potential buyers. Seasonal factors have also played a role, with mild weather pulling sales to the early part of the year.”

“The number of homes listed for sale rose 2.1 percent in May but remains 8.4 percent below its year-ago level. Inventories have fallen on a year-to-year basis every month for the past two years.”

“Homes are selling very quickly. The typical listing was on the market for a record low 27 days, down from 32 days last year. Tight inventories are boosting selling prices, with the median home selling at a record $252,800, up 5.8 percent from last May.”