New-home sales edged up 0.7% in August after a 6.5% jump in construction activity in July, according to the government.
The U.S. Census Bureau reported last week that sales of new single-family homes rose to a 429,000 seasonally adjusted annual rate in August, up from a 426,000 rate in July. The July rate was revised downward by 4,000 sales.
"August new-home sales inched higher, but only because of revisions," said Weiss Research analyst Mike Larson. Nevertheless, home sales continue to stabilize, "but at depressed levels," he said.
IHS Global Insight economist Patrick Newport pointed out that the number of unsold new homes has declined over the past 28 months to 262,000 units, which is a seven-month supply, down from an 11-month supply a year ago.