US home sales up by more than forecast

[WASHINGTON] Sales of new US homes rose in August by more than forecast, reaching a four-month high and suggesting demand is stabilising as builders make gradual headway on backlogs.

Purchases of new single-family homes increased 1.5 per cent to a 740,000 annualised pace following an upwardly revised 729,000 in July, government data showed on Friday. The median estimate in a Bloomberg survey of economists called for a 715,000 rate.

The residential real estate industry is facing a number of cross-currents. While underlying demand is solid, builders are struggling to fill orders because of unsteady supply chains and difficulty finding workers.

At the same time, materials costs are cooling, providing some relief. BLOOMBERG