With the West and Northeast leading the way, sales of new homes climbed a whopping 18 percent to a seasonally adjusted annual rate of 504,000. This represented the most rapid ate since May 2008.
Across the United States new home sales have increased by nearly 33 percent in the last 12 months with median prices rising 8 percent to $275,000 nationwide.
The increase was even more pronounced in the West where new homes were purchased in August at a rate 50 percent higher than July. New homes sales in the West have nearly doubled in the past 12 months.
At the same time, analysts warned that the recent rapid price surge has put a considerable percentage of home out of reach for many American buyers.