Purchases of new U.S. homes surged in December to the highest level in 10 months, closing out the best year for housing since 2007.
Sales jumped 10.8 percent last month, the most since August 2014, to a 544,000 annualized pace, a Commerce Department report showed Wednesday. The Bloomberg survey median called for a 500,000 rate. For all of 2015, purchases of new properties climbed 14.6 percent to 501,000.
Employment gains and attractive mortgage rates combined to push new-home sales forward for a fourth straight year. Sustained hiring and income growth would provide further impetus for the market, encouraging more construction and contributing to the economy.
"Demand is outpacing supply at extreme levels," said Jacob Oubina, senior U.S. economist at RBC Capital Markets in New York. "Job growth continues to outpace expectations. We should continue to see housing flourish in 2016."
Estimates in the Bloomberg survey median ranged from 478,000 to 550,000. Sales rose to 491,000 in November, previously reported as 490,000.
The median sales price decreased 4.3 percent from December 2014 to $288,900, the report showed.
See Thursday's Arkansas Democrat-Gazette for full details.