Sales of existing homes declined 8.6 percent last month, to a seasonally adjusted rate of 4.49 million, according to the National Association of Realtors, a trade association. The median price of a home fell 13 percent in November, to $181,300 from $208,000 a year ago. That was the lowest price since February 2004.

“They’re about as god-awful as they can get,” said Robert Barbera, chief economist at ITG. “This is pretty breathtaking stuff.”

The troubles plaguing the housing market, which is at the heart of America’s financial crisis, are only multiplying as the broader economy deteriorates. Even though mortgage rates dropped after the Federal Reserve slashed interest rates to record lows near zero percent, economists said that housing would continue to lag as unemployment increases and the spiral of slumping consumer spending and waning industrial growth continues.

“Housing dragged down the markets this summer,” said Nariman Behravesh, chief economist at Global Insight. “Now it’s the economy and financial markets that are dragging down housing.”

NYTimes