Sales of New U.S. Homes Reach Highest Level Since July 2007

New-home sales in the U.S. jumped at the start of the year, reaching the strongest pace since mid-2007 on the heels of cheaper borrowing costs, favorable weather and a resilient labor market.

Single-family home sales rose 7.9% to a 764,000 annualized pace in January, exceeding the median estimate in a Bloomberg survey, while the December figure was revised higher, government data showed Wednesday. The median sales price jumped 14% from a year earlier to a record $348,200 as more expensive properties made up a larger share of purchases.