American stocks rose, sending the Dow Jones Industrial Average above 12,500 for the first time, as oil tumbled to a one-month low and home sales exceeded forecasts.

Fifteen of the 16 homebuilders in Standard & Poor’s indexes advanced amid optimism that the worst of the real-estate slump is over. Home Depot Inc., the largest home-improvement retailer, and Sherwin-Williams Co., the biggest American paint seller, paced a rally by companies whose products are used in houses.

“Housing is a major risk that consumers were facing and a risk that investors were concerned about,” a manager at Manning & Napier Advisors Inc., Charles Stamey, said. “Any announcement that shows we might be near the bottom of that is going to be viewed as very positive.”

Falling energy prices and higher home sales bolstered speculation consumer spending will keep the economy growing. General Motors Corp. led automakers higher, extending a year-end rally in stocks and lifting the Dow average to its 22nd record of 2006.

The Dow industrials added 102.94,or 0.8%, to 12,510.57, closing above its previous record of 12,471.32 on Dec. 19. The S&P 500 climbed 9.94, or 0.7%, to 1426.84, with all 24 of its industry groups gaining. The Nasdaq Composite Index increased 17.71, or 0.7%, to 2431.22.

Sales of new homes in America increased 3.4% to an annual pace of 1.047 million last month. Economists predicted a rise to 1.018 million in a Bloomberg News survey. The year-on-year increase in median house prices during November was the most in five months.

Consumer spending, which is influenced by home values, makes up twothirds of the American economy and may play a bigger role in driving growth amid signs manufacturing is slowing.

Stocks are poised to complete their fourth straight annual rise, partly due to prospects the Federal Reserve will cut its benchmark interest rate, currently at 5.25%. A fall in oil prices to a one-month low today may reduce inflation, allowing the central bank to ease borrowing costs.

“Any move down in oil can be viewed positively for stocks,” a trading analyst at Cowen & Co., Michael Malone, said. “It removes inflationary pressure from the economy.”

Crude oil fell 1.2% to $60.34 a barrel in New York, the lowest price since Nov. 27. The commodity has dropped 22% from July’s record of $78.40.

The S&P homebuilders gauge added 1.9% for its best performance in three weeks following the report on new-home sales. Ryland Group Inc. increased the most, gaining $1.82, or 3.5%, to $54.35. Pulte Homes Inc., the biggest American builder by market value, advanced 50 cents to $33.35.