According to a new residential sales report released Wednesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, residential home sales rose 3.5 percent in August– a better-than-expected turnout, signifying a healthy economy and a strong market.

Single-family home sales rose 3.5 percent month-over-month to a seasonally adjusted rate of 629,000 units — a 12.7 percent year-over-year uptick, according to the Monthly New Residential Sales Report. The average sales price clocked in at $388,400 according to the report. Residential sales in July, meanwhile, were revised down to 608,000 homes from the previously reported 627,000, according to a separate Census report. Among major geographic regions, The Midwest lead with a 13.2 percent hike.

An increase in inventory shows builders are steadily working to meet steadily growing buyer demands. Impressively, sales in August are up a whopping 12.7% from a year ago. The number of completed new homes for sale has been very gradually increasing and today’s data shows that August hit the highest level since spring 2011.