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US New home sales rose 6.%7 in May. According to analysts from Wells Fargo, the rebound took place behind low inventory.

Key Quotes:

“New home sales rose 6.7 percent in May to a 689,000-unit pace. The gain follows a 3.7 percent drop in April. Sales of homes not yet started jumped 17 percent on the month.”

“Persistently low inventories of existing single-family homes are likely pushing buyers to new homes. Inventories of new homes are also tight but development is picking up.”

“Both the median and average price of a new home fell in May, likely signaling increased sales of entry-level homes and the surge of new home sales in the relatively more affordable South.”