Home sales plunged in December, triggering new concerns over the housing market's ability to recover without any of government’s backing.

The figures by the National Association of Realtors on Monday revealed that sales of previously owned homes fell 16.7% from November to a 5.45 million annual rate, after a looming tax-credit deadline nudged buying decisions into previous months, causing a slowdown in the sales to the lowest level since August.

However, Analysts had speculated a less severe drop to a 5.90 million unit pace.

"We have a very fragile housing system", said Michael Carey, an economist with Calyon Securities in New York, posing his worry over further slip in housing market as government withdraws.

The slip would engulf homeowners, as more get into the position of owing more on their mortgage than their home is worth, and could lead to another wave of foreclosures.

In accordance to the Realtors group, first-time home buyers formed 43 percent of sales in December, down from 51 percent the previous month, while distressed transactions made up 32 percent of the sales.

In addition, the median price for a home sold in December was $178,300, up 4.9% from $170,000 in November and the largest monthly percentage price increase since 2005.