US Existing Homes: Inventory is still the primary problem - Wells Fargo
|Today’s data showed a decline in US existing home sales. According to analysts from Wells Fargo, shortages hold back existing home sales and drive up prices.
Key Quotes:
“The month’s supply of existing homes for sale is still low, but the tide may be turning. The total inventory climbed to 1.95 million. That was sufficient to make this the first time in three years that inventories were up on a year-over-year basis.”
“The median home price rose to $276,900 in June. That is a fresh all-time high. The nominal price of a median existing home today is more than 20 percent above its pre-recession peak. Even after adjusting for inflation, prices are approaching all-time highs.”
“The higher price environment and higher mortgage rates are also factors holding back the pace of existing home sales.”
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