Home Sales Take Record Drop

Sales of existing homes took a record plunge and orders for “big-ticket” durable goods also tumbled in January after a wave of tax-spurred purchases in December, according to statistics released today.

Home sales plunged a record 14.5% in January to an annual rate of 3.47 million units, compared with 4.06 million units in December, the National Assn. of Realtors said. The trade group said the drop was driven by a rush to close sales before the new tax law took effect Jan. 1. The same factor depressed durable goods orders, which fell 7.5% in January, the biggest drop in about seven years, according to the Commerce Department.