Purchases of new homes in January climb to 5-year high

[WASHINGTON] Purchases of new US homes unexpectedly climbed in January to the highest level in more than five years, showing underlying strength in the industry even in the midst of unusually harsh weather.

Sales increased 9.6 per cent to a 468,000 annualised pace and the most since July 2008, figures from the Commerce Department showed yesterday in Washington.

Demand improved in three of four regions.