NEW YORK (CNNMoney) — New home sales exceeded forecasts in the latest government readings Friday, another sign of a long-awaited recovery in the battered housing market.

The Census Bureau reported that the pace of new home sales hit a seasonally-adjusted annual rate of 321,000 in January, up from the previous reading for December and better than economists’ forecasts. Census also revised the December figure higher to a rate of 324,000.  Read more