The National Association of Realtors has reported a huge drop in the number of existing home sales for the month of July.

According to the group, the July home sales were in their lowest level since May 1995. Analysts believe fears over unemployment are affecting resales despite relatively lower prices of single family homes and record-low mortgage rates.

The association said July sales of existing single-family homes, condominiums and townhouses nose-dived to a seasonally adjusted annual rate of 3.83 million – some 27.2% lower than June resales and 25.5 lower than the same month last year. Across the country, double-digit drops were seen. The Midwest registered the steepest decline of 35%. The Northeast followed with 30% while the West and the South logged declines of 25% and 23%, respectively.

Some economists, like those surveyed by news network Bloomberg, predicted only half of that decline. According to experts, home buyers are still afraid to shop for houses due to concerns of unemployment.

Capital Economics economist Paul Dales described the figures as “eye-wateringly weak.” He said that with such weak sales, a double dip in housing prices is not unlikely. “It suggests that without the housing tax credit, housing market activity is very, very weak,” he added. The federal government’s first-time home buyer tax credit program ended in April 30.

A lot of experts predicted that the conclusion of the tax program would lead to a decline in sales. However, even pessimistic analysts were taken aback by the July plunge.

“This is a pretty dicey time (for the economy),” said Scott Brown, chief economist at Raymond James & Associates. Meanwhile, Steven Ricchiuto, chief economist for Mizuho Securities in New York, said that the decline was “so outside the statistically norm.”

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