Sales of new single-family homes spiked in August, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were up 7.9 percent above July’s rate and 12.6 percent above last year’s estimates. The improvement is a welcome change following a nearly 14 percent plunge in July, which was the largest drop in more than three years. And, though August’s estimates fell slightly below economists’ expectations, the late summer lull has been caused by temporary factors, according to analysts. Merrill Lynch, for example, is forecasting that builders will sell 438,000 new homes this year and that sales will rise by more than 20 percent next year. The government report also showed that the median sales price of new houses sold in August was $254,600; the average sales price was $318,900. There is a 5-month supply of new homes available for sale at the current sales rate. More here and here.