The U.S. Commerce Department announced on Wednesday that the sales of new single-family homes rose 7.1 percent m-o-m to a seasonally adjusted annual rate of 713, 000 units in August.

Economists had forecast the sales pace of 660,000 last month.

July’s sales pace was revised up to 666,000 units from the originally reported 635,000 units.

According to the report, new home sales in the South, the largest area, climbed 6.0 percent in August. Sales of new homes in the West jumped 16.5 percent. But sales decreased 5.9 percent in the Northeast and dropped 3.0 percent in the Midwest.

In y-o-y terms, new home sales recorded an 18.0 percent surge in August.