Wells Fargo Reports: Existing Home Sales Gain in March

On the heels of a modest decline in February, existing home sales posted a 5.1 percent pickup in March. Inventory levels continue to report slight gains, which may help provide a lift to sales this spring.

Good First Quarter in the Books

• Existing home sales rose 5.1 percent in March to a 5.33 million- unit rate, recouping the majority of February’s loss. While the month-to-month data tend to be more volatile, on a year-to- date basis, existing home sales are running 5.6 percent above their year-ago level.
• The pickup in sales was led by large gains in the Northeast and Midwest, which rose 11.1 percent and 9.8 percent, respectively.

Even With Recent Gains, Inventory Remains Lean

• The months’ supply of existing homes increased for the third consecutive month to 4.5 months and total inventory of existing homes available for sale rose 5.9 percent to 1.98 million units. While the pickup is encouraging, supply levels remain lean.
• We look for existing home sales to rise roughly 4 percent by year- end 2016, as low mortgage rates and strengthening employment conditions are likely to support sales in the coming quarters.