Sales of new homes increased 0.7% in August, but were 3.4% less than the levels in August 2008, the Commerce Department reported today.

August's sales were at a seasonally adjusted annual rate of 429,000, compared with 426,000 last month and 444,000 in August 2008.

There were 464,000 new homes sold, compared with 452,000 in August and 694,000 in September 2007.

It was the second consecutive piece of mixed housing data. On Thursday, the National Association of Realtors reported that existing home sales fell in August, but were higher than in August 2008.

In August, new home sales fell in the Northeast and Midwest by 16.3% and 5.8%, respectively. They were unchanged in the South and increased 12.1% in the West.

The year-to-year sales figures increased in the Northeast and West by 28.6% and 30.4%, respectively. They fell in the Midwest and South by 31.9% and 30.4%, respectively.

August's median price for a new home was $195,200 and the average sales price was $256,800.