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Sales of single family homes rose 7% to 4.26 million, while condo sales rose 2.1% to 480,000. For all of 2008, single-family sales fell 12% to 4.35 million, while condo sales fell 21% to 563,000.

The report comes as signs of a deepening recession mount. Reflecting the weak housing market, Home Depot announced Monday it would eliminate 7,000 jobs and close its Expo home decorating division. See full story.

The government will report on sales of new homes on Thursday. Economists surveyed by MarketWatch expect sales to decline about 4% to a seasonally adjusted annual rate of 390,000 in December. See Economic Calendar.

In a separate report, the Conference Board said the index of leading economic indicators rose 0.3% due to a large increase in the money supply. The private group said an intense recession will continue through the spring. See full story. End of Story

Rex Nutting is Washington bureau chief of MarketWatch.