Today’s new home sales were horrible. The worst ever, actually. And, far below expectations.

Diana Olick thinks this could foreshadow bad existing home sales this Spring:

Remember, this number from the Census is based on contracts signed in February, not closings, like the existing home sales number from the Realtors. That means it is a real indicator of how the Spring market is starting.

If demand is fading right as we head into the time of year when a lot more homes typically come up for sale, home price declines could accelerate quickly.