New home sales fell to record lows in July as the real estate housing market in the US continued to suffer from a slow and fragile economy.

Single-family home sales dropped a staggering 12.4 per cent to a 276,000 unit annual rate from a downwardly revised rate of 315,000 in the month of June.

Homes sales had seen a rise earlier in the year as homebuyers attempted to take advantage of the April 30 deadline for a $8,000 tax credit. After the expired deadline, home sales dropped to an annual rate of 281,000 in May.

The real estate market in the US saw existing home sales drop a record 27% in June, according to a report from the National Association of Realtors released on Tuesday.

The report stated: “Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.”

Cautious analysts warn of a double-dip recession in the US.

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