Sales of single-family homes decreased by 9 percent last month to a seasonally-adjusted annual rate of 647,000, lowest recorded since 621,000 in April 1995.

Home prices also fell. The median price of a new home decreased by 0.4 percent to $239,100 in November from $240,100 in November, 2006.

On a year-to-year basis, sales were 34.4 percent lower than the level in November, 2006. That's the largest year-to-year decline since 35.3 percent in January 1991.

The Wall Street Journal said dropping home prices were an ominous sign for the economy since consumer spending makes up 70 percent of U.S. economic activity as measured by GDP.