A home for sale in Wisconsin.
Sales of new homes unexpectedly fell by 7.6 percent in December compared to a month earlier. The Commerce Department said just 342,000 new homes were sold, the fewest since March. Economists had expected sales to increase slightly in December.
Builders continue to cut back on building new homes but their slow down hasn't been enough to keep pace with the decline in sales. At the current sales pace, the Commerce Department estimates it will take 8.1 months to sell off all the homes on the market.