The National Association of Realtors cut its U.S. housing forecast again on Tuesday, saying that stricter lending standards and a decline in subprime mortgage origination has cut down on speculative buying and hurt prices.
The realtors said existing homes sales are likely to total 6.29 million this year compared to 6.48 million last year. The trade group's previous forecast, issued in April, was for 6.34 million existing homes sold in 2007.
The group said new home sales were projected at 864,000 in 2007 and 936,000 in 2008, both down from the 1.05 million sold in 2006.