New-Home Sales Decline

Demand for new homes fell in December, signalling that the recovery in the housing market is stalling. Single-family home sales decreased 7.6% from the previous month versus economists' estimates of a 2.8% increase.

Major culprits for the lackluster numbers appear to be unemployment and the looming expiration of a large tax credit. Observers have also pointed to chilly weather as being a possible factor in the weak December home sales number.