The Commerce Department has reported that sales of newly built, single-family homes are down 2.5 percent. "The nation's housing market clearly continues to display fundamental weakness, and today's numbers are in line with what builders have been telling us in our regular surveys," said NAHB Chief Economist David Seiders.

According to the NAHB, sales were down in both Northeast (7.9 percent) and the West (11.6 percent). The Midwest saw a decent gain at 5.1 percent.

Relief may be on the way, however, for builders. Seiders reports, " A temporary home buyer tax credit would help release some of the pent-up demand among potential buyers who are holding off on a home purchase in hopes of prices going lower. This, in turn, could provide a significant shot in the arm for the overall economy."