Sales of new single-family homes rose nearly 8 percent in August and are 12.6 percent higher than a year ago, according to new data released Wednesday by the Census Bureau.
The rise — which comes just a month after new home sales plunged by more than 14 percent— is the latest turn in what economists say will be a volatile ride for this segment of the housing market.
The number of new homes sold in August was at a seasonally adjusted annual rate of 421,000, up from the revised rate of 390,000 homes in July. That figure is still below the rate of construction needed in a healthy market, according to analysts. Right now, it would take five months to run through the supply of new homes, according to the report.
A six-month supply of homes is considered healthy, and the housing market is still facing a shortage of inventory.