Further decline in US home sales

US housing sales have fallen sharply in the past year

Sales of previously-owned US homes fell 20% in March as the downturn in the housing market continued, the nation's main estate agency trade body has said.

The number of sales contracts signed during the month was 20% lower than March 2007, according to the National Association of Realtors.

It added that the number of contracts signed was down 1% from February.

The decline had been expected by economists, with the market showing no signs of pulling out of its slump.

'No shock'

"This is not a shock," said David Wyss, chief economist at Standard & Poor's Ratings Services.

"The pace of sales seems to be stabilizing but that's the best you could say about it.

"But I don't think we've hit a bottom yet.

"Combining this with the other data, the housing market is continuing downward and it won't bottom until this summer or some time in the third quarter."