New home sales rise 9.6%

Doug Carroll, USA TODAY10:21 a.m. EST February 26, 2014


(Photo: Gene J. Puskar AP)

New home sales rose sharply in January, defying expectations for a drop-off due to extreme cold weather in much of the country.

Sales were at a seasonally adjusted annual rate of 468,000 in January, a 9.6% increase from December and the strongest pace in more than five years, the Commerce Department said Wednesday.

December sales were revised up to an annual rate of 427,000 from 414,000 previously reported.

The figures were the best news in months for the housing market. Its recovery has lost some steam due to rising home prices early in 2013, increased mortgage rates last year and recent bad weather affecting both home buyers and builders in some parts of the country.

Various economists' forecasts had anticipated a decline in the January sales rate of between 3% and 6%.

The median price of new homes sold in January was $260,100

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