Watch VideoPlay Video
US home sales plunged by more than a quarter in July as the wind went out of the housing sector's sails and underlined a struggling return to growth.
Conway Gittens from Reuters has more, on what could be a new downturn for the world's biggest economy.
U.S. sales of previously owned homes unexpectedly plunged to a 15-year low in July. The National Association of Realtors says existing home sales took a record 27.2 percent dive last month, more than twice the drop expected. Sales came in at an annual rate of 3.83 million units, the lowest since May 1995.
Sales have fallen off steeply since the government ended a short-term tax incentive in April. Economists say the numbers show just how weak housing demand really is.
The big drop underscores fear the housing market could dampen an already slowing economic recovery, reviving talk of the possibility of a double-dip recession.
Wall Street is not taking the number well.
- U.S. new home sales down 33% in May 2010-06-24