The number of new deals under contract that month fell from October, a sign of vulnerability in the housing recovery. The number of homes placed under sales contracts tumbled in November from the previous month, presenting fresh evidence that the nascent housing recovery could be poised for a dip in the new year.

Experts said the November drop in home contracts and in new home sales reflected a falloff after a surge in activity as buyers rushed into the market to take advantage of the tax credit before its initial expiration Nov. 30.

This is exactly what happened with 'Cash for Clunkers'; sales were stimulated and occurred faster in a shorter period of time. This made an earlier lump in sales hastening sales not affecting the annual sales much overall.

"It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit," he said. "The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own."

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• Pending Home Sales Fall After Months of Gains (nytimes.com)

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