Without sufficient inventory of existing homes to choose from, it appears eager home buyers turned to new home builders in August. As reported on Monday, existing home sales nationally fell in August compared with recent months.

Even new homes aren’t keeping pace with demand, according to analyst Steve East, chief economist and market strategist for Height Securities, who said the pace of new-home sales is roughly 60% of what it should be given the size of the U.S. population and economy’s rate of growth.At the same time, the National Association of Realtors said there is a housing shortage in many areas of the country, particularly the West Coast. The trade group said builders scaled back their activity too aggressively and have not kept with the pace of job creation.

Source: New-home sales extend surge in August – MarketWatch