The market for new homes continued to struggle in August.

The Commerce Department reports sales of new single-family houses fell 3.4 percent last month to a seasonally adjusted annual rate of 560,000. On a positive note, the government revised its estimate of sales in July to an annual rate of 580,000 instead of the 571,000 initial reported.

Nonetheless, the August sales pace is down 1.2 percent from the same period a year ago. Sales fell in all U.S. regions except the Midwest where they were flat. The sharpest decline was in the South (-4.7 percent), followed by the West (-2.7 percent) and the Northeast (-2.6 percent)

Pricing and inventory

The median sales price of new homes sold last month was $300,200, down $19,700 from July but up $1,300 from a year earlier. The median is the point at which half the houses sold for more and half for less.

The average sales price was $368,100, a month-over-month loss of $3,200 but an annual gain of $13,000.

The estimate of new homes for sale at the end of August was a seasonally-adjusted 284,000, representing a supply of 6.1 months at the current sales rate versus a 5.8 months supply at the end of July.

The complete report can be found on the Commerce Department website.

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