Housing prices fall along with the sales of new homes in August, but the market shows some signs of stabilizing.
Sales of new homes fell 2.3 percent in the month of August and the average sales price fell from $272,300 in July to 246,000 in last month, according to data released today by the Commerce Department.
A glut of foreclosed properties and distressed sales appears to be diverting potential buyers to the existing homes market, which saw an increase of 7.7 percent in the month of August, according to data released last week by the National Association of Realtors.
The Wall Street Journal reports that builders KB Homes and Lennar Corp. both reported third quarter losses attributed to the prolonged downturn, but said that orders are higher than a year ago, a sign the market is stabilizing. The Commerce Department reports that sales of new homes are 6.1 percent higher than in August of 2010.