Dive Brief:
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Builders sold 11.6% more new single-family homes in December than in November, the Commerce Department reported on Tuesday.
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That brought the seasonally adjusted tally for new home sales to its highest level in six years.
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According to the report, the average price of a new home in December was $377,800.
Dive Insight:
The strong year-end showing exceeded the expectations of many economists and fueled optimism for a stronger-than-forecast housing recovery this year.
Many attribute this upward swing in the housing market to employment gains, easing credit and low borrowing costs. The improved outlook is pumping up confidence among builders, and companies predict the recovery will be sustained.