August Home Sales Rising

August Home Sales Rising

Sales of new homes, after falling for three months, rose in August. But the gain was expected to be temporary as the battered housing industry struggles with a near-record level of unsold homes.

The Commerce Department reported that home sales increased by 4.1 percent last month, the best showing since an 8 percent increase last March.

But even with the increase, the median price of a new home fell to $237,000, a drop of 1.3 percent from August 2005. It was the first year-over-year price decline since late 2003.

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