America’s main stock markets tumbled by more than 2 per cent yesterday after new data showed the number of previously-owned homes sold in June fell by more than twice the expected volume to the lowest level in at least ten years.

The Standard & Poor's 500 Index fell by 29.62 points, or 2.3 per cent, to 1,252.57, with builders and financial services groups taking the biggest hit because they have the most to lose from the housing crisis. The Dow Jones Industrial Average declined by 283.1, or 2.4 per cent, to 11,349.28, while the Nasdaq tumbled by 45.77 points, or 2 per cent, to 2,280.11.

Shares of major builders, such as Pulte Homes and D.H. Horton each fell by 14 per cent, while Toll Brothers declined by 8.5 per cent.

Bank of America dropped 8.4 per cent, Citigroup declined by 9.8 per cent, Merrill Lynch by 14.1 per cent and Washington Mutual by 13.3 per cent.

The sale of existing, as opposed to new, homes dropped by 2.6 per cent in June, from the month before, to an annualised rate of 4.86 million, according to the National Association of Realtors. Meanwhile, the median home price came in 6.1 percent lower than in June 2007 at $215,100.

Furthermore, separate figures released yesterday by the US Census Bureau showed a record 18.6 million houses, apartments and condominiums stood empty in the second quarter.

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