Slowdown in US housing market seen continuing into 2007

The slowdown in the US housing market is expected to continue into 2007, with home sales predicted to drop by 2 pct in 2007 after an 8 pct decline this year, National Association of Realtors (NAR) said.
Despite the somewhat benign projections, NAR warned that a significant shift in interest rates or a change in the economy would alter these forecasts.
It also predicted that home price growth will be minimal, at less than 3 pct both in 2006 and 2007, adding that a soft landing is possible under the right circumstances in a testimony to the Senate Banking Committee hearing today.