The pace of sales of existing homes in the US slowed by 8.6 per cent last month, as buyers retreated from the market in spite of falling prices.

Home resales fell to an annual rate of 4.49m in November, down 10.6 per cent year-on-year, the National Association of Realtors (NAR) said on Tuesday. The median price of an existing home plummeted 13.2 per cent year-on-year to $181,000 (£123,000), the sharpest decline since record-keeping began in 1968.