New-Home Sales Plummet

New-home sales plummeted 11% in November, confirming many economists' suspicions that an October spike in sales was a fluke.The U.S. Census Bureau reported that new single-family home sales fell to a seasonally adjusted annual rate of 1.25 million in November, down from 1.4 million in October -- the fastest monthly pace in 12 years. Economists have been expecting a slowdown in the housing market, and November's sales were the slowest since January. The Census Bureau also reported that the inventory of newly constructed homes rose to a 4.9-month supply, up from 4.2 months. Several weeks ago, Freddie Mac chief economist Frank Nothaft predicted a 200,000 drop in new-home sales in November. The Census Bureau, an agency of the Commerce Department, reported a 159,000 decline from October to November. The department can be found online at http://www.doc.gov.