New home sales surged 10.8% at a seasonally adjusted annual rate of 544,000 in December, according to the Census Bureau.
Economists had estimated that new home sales rose 2% at an annual rate of 500,000, according to Bloomberg.
This jump made December the strongest month for new home sales since last February.
The median sale price of new houses sold during the month was $288,900.
In a client note, BNP Paribas’ Derek Lindsey wrote that the jump in new home sales may have been driven by unusually warm weather, and a pick up in mortgage applications for purchase since October.