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New-home sales dropped off a bit in August, but managed to increases significantly from a year ago, according to the U.S. Department of Housing and Urban Development.

Sales of new single-family homes in August were at a seasonally adjusted annual rate of 373,000, 0.3 percent below the July rate of 374,000. On a year-over-year basis, sales were up 27.7 percent.

According to MarketWatch, the 373,000 sales level in August was the highest recorded since April, when the government provided consumers with incentives to buy. Economists surveyed by Reuters forecasted a sales rate of 380,000.

At the end of August, it was estimated that there were 141,000 new homes for sale in the country, representing a supply of 4.5 months at the current sales rate.

Additionally, the median sales price came in at $256,900, while the average sales price was $295,300.

Some factors that have helped improve new home sales in 2012 include record low borrowing costs and increasing demand in the market.

As the inventory of homes for sale grows smaller, properties have been selling more quickly, according to the National Association of Realtors.

The median time a home was on the market in July was 69 days, a 29.6 percent drop from last July when the median was 98 days.

Inventory has dropped as well, with a 6.4-month supply of homes based on the sales pace in July, which was 31.2 percent lower than the year before.

"As inventory has tightened homes have been selling more quickly," said Lawrence Yun, NAR chief economist. "A notable shortening of time on market began this spring, and this has created a general balance between home buyers and sellers in much of the country."

However, even though homes have been selling quicker, a Harris Poll found that four in five Americans are unwilling to buy or refinance homes despite record-low mortgage rates. A number of things have pushed Americans away, including uncertainty about their jobs and high closing costs.