The U.S. Commerce Department announced on Thursday that the sales of new single-family homes surged 4.3 percent m-o-m to a seasonally adjusted annual rate of 923,000 units in January 2021.

Economists had forecast the sales pace of 855,000 last month.

December’s sales pace was revised up to 885,000 units from the originally reported 842,000 units.

According to the report, new home sales in the South, the largest area, rose 3.0 percent m-o-m in January. Meanwhile, sales in the Midwest surged 12.6 percent m-o-m and those in the West increased 6.8 percent m-o-m. In the Northeast, however, new home sales plunged 13.9 percent m-o-m in January.

In y-o-y terms, new home sales were up 19.3 percent in January.