WASHINGTON (AFP) - Sales of new homes in the US plunged in November as tight lending conditions and consumer pessimism led to the slowest rate in more than 12 years, new government data showed Friday.

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The Commerce Department reported that last month's new-home sales were down 9.0 percent to a seasonally-adjusted annual rate of 647,000 units, the lowest sales rate since 621,000 in April 1995.

Analysts' consensus forecast was for a far more moderate slowdown to 715,000 units.

The November decline followed a 1.7 percent rise in October that came only after a sharp downward revision to September figures.

The median price of a new home in November fell 0.4 percent from November 2006 to 239,100 dollars, although the median -- the mid-point between the highest and lowest price -- was actually up 4.2 percent from October.

Builders managed to cut 1.8 percent off their inventory of new homes on the market, to 505,000 units. But at the slower sales rate that raised the inventory overhang to a 9.3-month supply, a 5.7 percent increase.

Sales estimates for October and September were cut by a total of 34,000.

"Despite November's sorry numbers, we think that we are closer to the end than to the beginning of the cycle," said Patrick Newport, US economist at Global Insight.

"Builders have been slashing prices. At some point, prices will drop enough to lure new buyers into the market. We think the turnaround will take place sometime in the next six months," he said.

The November sales report was the second dismal piece of data this week on the embattled real estate market. On Wednesday, a closely watched private index showed home prices fell a record 6.7 percent in the 10 largest US metropolitan areas in October.

The Commerce Department said only sales of new homes in the West showed an increase in November, of 4.0 percent.

Sales in the Midwest fell 27.6 percent. Northeast sales were off 19.3 percent and sales in the South were down 6.4 percent.

Sales in all regions were down 34.4 percent from November 2006.