Sales of new single-family homes increased 9.6% to a 468,000 seasonally adjusted annual rate in January, according to data released by the Commerce Department Wednesday.
The increase came after an upwardly revised 427,000 rate in December, originally reported as a 7.0% drop to 414,000. Thomson Reuters' poll of economists had predicted a 400,000 sales level for January.
Sales of new homes were 2.2% above the 458,000 rate in January 2013, Commerce said.
The supply of new homes at the current sales rate fell to 4.7 months from 5.2 months in December.
At the end of January, the number of new homes on the market was flat at 184,000.
The unadjusted average price of a new single-family home gained to $322,800 from $308,800.
Meanwhile, the unadjusted median price slid to $260,100 from $265,900 in the previous month.
Sales rose in three of the four regions of the country in the month and fell in one.
Sales in the Northeast surged 73.7% to 33,000 from 19,000, while sales in the South were up 10.4% to 276,000 from 250,000, and sales in the West jumped 11.0% to 111,000 homes from 100,000 sold a month earlier. Midwest sales fell 17.2% to 48,000 from 58,000.
