New-home sales in the US has dropped to 331,000 lower last year than what Bloomberg News survey had forecast. Last December 2008, sales have plunged to the lowest level on record, leaving enough unsold properties to doubt that recovery in this industry will actually occur thish year.

As builders are still constructing more properties in addition to the unsold properties that there are, more pressure is being put on the prices. This makes new homes cheaper and cheaper but as it is hard to get credit, people can not buy.

The shrinking property market is costing more and more jobs, starting from banks and homebuilders to manufacturers and retailers.

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