by Daniel Costello

The Commerce Department estimated Wednesday that sales of new homes fell 11.3 percent in November to a seasonally-adjusted annual rate of 355,000, the lowest level since March, as a popular tax break for first-time homeowners was set to expire.

Economists had forecast sales would rise to 440,000.

Buyers would have had to sign a contract on a new home by early October at the latest in order to receive the original tax credit, which was extended until June and expanded to include repeat buyers.

On Tuesday, the National Association of Realtors reported that resales jumped 7.4 percent in November as buyers rushed to complete sales ahead of the deadline.