Home sales plunge in January to 12-year low

February 25, 2009 at 10:32a.m.

WASHINGTON (AP) — Sales of existing homes took an unexpected plunge from December to January, falling to the lowest level in nearly 12 years as buyers waited for the government to boost the U.S housing market.

The National Association of Realtors said Wednesday that sales of existing homes fell 5.3 percent to an annual rate of 4.49 million last month, from 4.74 million units in December. It was the weakest showing since July 1997.

Sales had been expected to rise to an annual pace of 4.79 million units, according to Thomson Reuters.