U.S. home sales and prices will fall further in 2007 than earlier expected, the leading realty trade association predicted Wednesday.
The National Association of Realtors trimmed its sales forecast for the fifth straight month and also widened its predicted drop in existing home values.
"We continue to get dismal earnings forecast from builders, most recently D.R. Horton and Ryland," reported CNBC's Diana Olick. "Cancellation rates for both these companies are still very high."
Existing-home sales are seen at 6.11 million units this year, down from the 6.18 million units it predicted last month.
Sales in 2007 will be the lowest since 2002 when 5.63 million existing homes were sold. Even with the decline, this year would rank as the fifth highest on record, the trade group said.
The national median sales price for existing homes should ease by 1.4 percent to $218,800 this year. Last month the trade group said prices should slip 1.3 percent.