U.S. Existing-Home Sales Rebound Even as Inventory Remains Tight

Sales of previously-owned U.S. homes rose more than expected in the first gain in three months, indicating that job gains and tax cuts are supporting demand despite low supply, National Association of Realtors data showed Wednesday.

The results indicate that even with a low supply of homes for sale and rising borrowing costs, demand is being driven by a strong labor market and steady income gains. At the same time, first-time buyers are still struggling to purchase, as the group accounted for 29 percent of sales in February, down from 32 percent a year earlier.