Sales of new homes dropped unexpectedly in November to the lowest level since April, signaling a rough and rugged road to housing market recovery.

The 11 percent drop from October's pace shows that consumers are taking their time before making a decision as the deadline for first-time buyers to qualify for a tax credit has been extended.

The tax credit was first set to expire at the end of November, but Congress pushed the date to April 30. The program was also expanded to include current homeowners who will relocate.

New home sales data, released Wednesday, an indicator of future real estate activity is a better gauge than home resale. The new home figures tally sales agreements signed in November, while sales of previously occupied homes reflect contracts signed over the summer that were completed in November.

The November rate was the lowest since April, when new homes sold at an annualized rate of 345,000.

While the market for new home sales has improved in the wake of the housing crisis, it is a far cry from its July 2005 peak, when sales of new construction hit an annualized rate of nearly 1.4 million.

The largest November declines occurred in the Midwest and the South, where sales rates plunged more than 21% over the last 12 months.

The Census Bureau said there were 235,000 new homes for sale at the end of November. That represents enough supply to last for 7.9 months at the current sales rate.

The inventory has declined substantially since January, when there was enough supply of new homes to last more than a year, according to the government.