US new home sales dropped to a record low in February, data released by the Commerce Department revealed. New home sales for the month declined 2.2 per cent to 308,000 from the previous month's revised figure of 315,000 new homes.

Tuesday's home sales data indicated fourth consecutive monthly fall in new home sales. The figures were even lower than what was anticipated by experts.

Meanwhile, sales of existing homes also showcased a declining trend in the last month.

As explained by experts, one of the major reasons for such consistent fall in home sales since October was the rush of buyers in the pre-October period to avail the tax credits offered by the Obama government. However, the relaxation was later extended to April 2010.

Few analysts believe that despite strong support from the government, the housing sector is still finding it tough to move out of distress. They even consider that the near term outlook is not very inspiring.

However, the optimists expect home sales to show some resilience in March and April for the same reason that boosted them in October last year.