China home prices up in May for first time in 13 months

Hong Kong

NEW home prices in China rebounded nationwide for the first time in 13 months in May, suggesting a property downturn is bottoming out after a barrage of stimulus from the central bank and local governments since late last year.

Economists, however, warned that massive inventories of unsold homes could continue to drag on the world's second-largest economy well into next year, discouraging new investment and construction.

"Inventories in first-tier cities are back to healthy levels . . . but in third and fourth-tier cities it will take at least two more years," s…