Skip to main content

(Updated with stock prices.)



) -- New-home sales in the U.S. jumped 9.6% in July, the fourth straight monthly increase.

The Commerce Department said on Wednesday that new-home sales during the month rose to 433,000 compared with 395,000 in June. Economists were expecting 390,000 units.

Shares of homebuilders were in the green after the announcement.

Toll Brothers

(TOL) - Get Toll Brothers, Inc. Report

jumped 3.5% to $23/10 in morning trading,

Pulte Homes

(PHM) - Get PulteGroup, Inc. Report

grew 3% to $13.42,

TheStreet Recommends

KB Home

(KBH) - Get KB Home Report

was up 2% to $18.40 and


(LEN) - Get Lennar Corporation Class A Report

rose 3% to $18.40.

This is the second piece of good news the sector received this week.

Home prices rose 3% in the second quarter

, their first sequential gain in three years, according to the Standard & Poor/Case Shiller's U.S. National Home Price Index.

But once again, as with existing-home prices, amid the good news there were signs that the housing sector still has a ways to go before commencing a real recovery: The median sale price in July was $210,000, 11.5% lower than last year, when houses fetched $237,300 apiece on average.

-Reported by Jeanine Poggi in New York.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.