The National Association of Realtors has revised its forecast on existing home sales in a news release today. Now they predict a fall of 11 percent this year, a five-year low.

New-home sales are also predicted to drop to the lowest level in a decade and may decline 24 percent to 804,000.

The forecasts indicate the housing decline is worsening and the market isn't recovering. Existing home sales may drop to 5.78 million in 2007 from 6.48 million last year and prices for both new and existing homes are also forecast to fall, the NAR said.

The median existing home price will drop 1.3 percent to $219,000 in 2007 and the median new home price may decline 2.1 percent to $241,400.

Should new home sales drop to the level forecast by the Realtors that would mark a fall of 37 percent from 2005's record 1.28 million sales.

With prices in the existing home market falling, U.S. homebuilders have slashed prices and abandoned land purchases.

Lennar Corp., the largest U.S. homebuilder, reported the biggest quarterly loss in its 53-year history last month after $848 million of costs to write down the value of real estate. KB Home, the Los Angeles-based builder that has lost more than 40 percent of its value this year, reported a third quarter loss. KB Home Chief Executive Officer Jeffrey Mezger said on Sept. 27 that he sees no sign that the housing market is stabilizing and that an oversupply of existing homes is cutting demand for new properties.

A Standard & Poor's index of the 16 biggest homebuilders dropped 42 percent this year through yesterday, led by Standard Pacific Corp., Meritage Homes Corp. and Hovnanian Enterprises Inc.