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Today, the U.S. Census Department released its monthly New Residential Home Sales Report for August. It showed a notable increase, with sales climbing 7.9% from July and rising 12.6% above the level seen in August 2012, remaining at an historically low level of 421K SAAR units. It's important to recognize that the inventory of new homes appears to be mounting as unsold units totaled 175K. However, that still near the lowest level seen in in at least 47 years, while the median number of months for sale declined to 3.0.

The monthly supply decreased to 5.0 months, while the median selling price increased 0.55% and the average selling price increased 4.39% from the year-ago level. The following chart shows the extent of the sales decline to date.

Source: New Home Sales: August 2013