Sales of existing homes in the US plunged 27.2% in July compared with June to their lowest level in more than 10 years, figures suggest.
Home sales completed in the month stood at an annualised rate of 3.83 million, according to the National Association of Realtors (NAR).
The main reason for the drop was the end of tax credits designed to boost sales, the body said.
Despite that, the figures added to fears about the US economic recovery.
Apprehension about weak housing figures pushed Wall Street lower in early trading and confirmation of the record low sales in the form of the NAR report sent shares down further.
The main Dow Jones index fell by 122 points, or 1.2%, to 10,052.18.
"I think [the July figure] is just suggestive of an economy that is definitely slowing down," said Cary Leahey at Decision Economics.
"Unfortunately, it is a situation where we can't have a meaningful recovery without a meaningful consumer recovery, and we can't have a meaningful consumer recovery without a recovery in housing".
Greg Salvaggio at Tempus Consulting said: "There is really nothing good that can be said about these numbers". BBC News
