Sales of New Homes Rise 7.4% to Highest Level Since 1979

Sales of new homes surged 7.4% last year to their highest level since 1979, the government reported today.

Sales of single-family homes totaled 686,000 in 1985, making last year the best since 709,000 new homes were sold in 1979, the departments of Commerce and Housing and Urban Development said.

For December, sales rose 1.7% as the average price of a home hit a record high of $108,600.

The report on new home sales followed a report Monday that sales of existing homes rose an even stronger 12.1% last year to a total of 3.22 million units, also the highest pace since 1979.