<p>WASHINGTON (AFP) – Sales of new homes in the United States have slumped to the lowest level since the 1960's, official data showed Wednesday, offering more evidence of an lingering real estate crisis.</p>
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Sales tumbled nearly 17 percent in February, the Commerce Department said, to a seasonally adjusted total of 250,000 sales during the month.</p>
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That marked the lowest number of units sold since 1963, when records began.</p>
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At the current rate it would take almost nine months for the all the new homes on the US market to be sold -- if no more homes are built.</p>
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The biggest slowdown in turnover was seen in the country's populous northeast, with sales down 57 percent from January.</p>
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"Nothing good can be said about the February report," said Steven Ricchiuto, an economist with Mizuho describing it as "several times worse that the markets expected."</p>
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The figures compounded a week of bad news for homeowners and the massive US real estate industry.</p>
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The National Association of Realtors on Tuesday said sales of already-owned homes fell 9.6 percent in February.</p>
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Despite low home prices and ultra-low interest rates the market has faltered as banks have tightened up loan requirements, ending years of profligate consumer borrowing.</p>
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"(Today's) report and the existing home sales data released yesterday confirm that the housing market is still in free fall," said Ricchiuto.</p>
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But Wednesday's Commerce Department's report contained the prospect of a slight -- and perhaps only statistical -- reprieve for struggling homeowners.</p>
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John Ryding and Conrad DeQuadros of RDQ Economics explained the low-level of real sales meant vast swings were possible.</p>
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According to non-seasonally adjusted figures only 19,000 new homes were sold in February, or 380 homes on average in each US state, the RDQ economists said.</p>
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"The actual level of new home sales is so small that modest variations in the level of sales have a huge impact on percentage changes," they warned clients.</p>
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