Washington, DC, United States (AHN) – Sales of new homes in the U.S. dropped 12.4 percent in July to an annual rate of 276,000, the lowest since beginning to collect data in 1963, the Commerce Department announced Wednesday.

July Home Sales Plunge To Record Low

Economists had expected an 339,000 annualized increase but the department said demand dropped after tax breaks for home buyers expired in April. The figure, however, has a margin of error of 10.8 percent.

There were 210,000 unsold homes in July, the lowest level since September 1968. Unsold homes under construction numbered 209,000 for the same month, the lowest level since February 1970.

All regions reported drops in sales: 25.4 percent in the West, 13.9 percent in the Northeast, 8.3 percent in the Midwest and 8.7 percent in the South.

Median sales price also fell 4.8 percent to $204,000 in July compared to the same month last year.