New-home sales rise 2.4 percent in July

The numbers also show continued contraction of the number of new homes available for sale as builders keep a tight reign on inventories to balance market supply and demand.

“With 15 consecutive months of reductions in the number of new homes for sale, builders are clearly doing a good job of chipping away at their inventories,” NAHB President Sandy Duncan said in a news release.

NAHB Chief Economist David Seiders noted that the improvement in new-home sales is favorable, it comes on the heels of two months of downward revisions to sales numbers.

“Nevertheless, we are cautiously optimistic that home sales are approaching a bottom, and that the newly enacted first-time home buyer tax credit ... will help stimulate sales and provide crucial support for a market turnaround.”

The first-time buyer tax credit is part of the housing stimulus bill signed into law on July 30.