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U.S. new home sales spike to more than 12 year high in January

Christian Fernsby |
Partly reflecting sharp increases in the Midwest and West, the Commerce Department released a report yesterday showing new home sales in the U.S. jumped to their highest level in over twelve years in the month of January.

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Topics: U.S.    HOME   

The report said new home sales spiked by 7.9 percent to an annual rate of 764,000 in January after jumping by 2.3 percent to an upwardly revised rate of 708,000 in December.

Economists had expected new home sales to surge up by 2.3 percent to an annual rate of 710,000 from the 694,000 originally reported for the previous month.

With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 778,000 in July of 2007.

The jump in new home sales came as sales in the Midwest and West soared by 30.3 percent and 23.5 percent, respectively.

New home sales in the Northeast also shot up by 4.8 percent, while new home sales in the South tumbled by 4.4 percent.

The Commerce Department also said the median sales price of new houses sold was a record high $348,200 in January, up 7.4 percent from $324,100 in December and up 14 percent from $305,400 in the same month a year ago.

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