Post the end of the well-liked stimulus program of the Government, the home sales crashed to the lowest levels in July since a decade. The same has ignited worries on the economic recovery front afresh.

Reports claim that the sales in the US fell for the third month straight and touched the lowest level since the year 1999. With the plunge, the stocks declined and 'double dip' worries hit the housing market.

The figures revealed by the National Assn. of Realtors found that the home sales dropped 27.2% and the collapse was witnessed despite the all-time low rates on the home loans. Further, the Realtors Association divulged that in July the seasonally adjusted annual rate of sales stood at 3.83 million units, which was a 25.5% fall since July 2009.

In the wake of crumpling of the market, White House Deputy Press Secretary, Bill Burton said that the slump was essentially due to the termination of the home-buyer tax credit.

Commenting on the situation, C. J. Jones, Head of Institutional Trading at Nollenberger Capital Markets, said, "You are seeing the sales drop off a cliff again, and that is really starting to scare people. Are we going to have a double dip? Nobody knows".

As per the experts, the current situation is extremely worrisome since the market has more homes as against the number of buyers. Further, with fall in the prices, the buyers have no or sparse motivation to enter the market.