Fresh data points to a further slowdown in the real estate industry. Separate reports show that inventories of unsold existing homes have jumped 39 percent in the year through June to 3.725 million units, and a nation-wide home sales decline of 7% in the April-June quarter this year compared with the same period in 2005.

The National Association of Home Builders said its index of sentiment among homebuilders plunged 7 points to 32 -- its lowest since February 1991 -- and less than half the level of a year ago. The NAHB said its gauge of traffic of prospective buyers also fell, by 6 points to 21, suggesting a steeper decline in the number of people visiting model home units over the last month than in any other period this year.

The slowdown in the once-sizzling housing market is spreading, with 28 states and the District of Columbia reporting spring sales declines, led by big drops in former boom areas of Arizona, Florida and California, the National Association of Realtors said Tuesday in its latest state-by-state look at housing conditions around the country.

However, there are pockets of good news as well. "States with moderately priced areas that have experienced healthy job creation are seeing sales gains," said David Lereah, chief economist for the Realtors. "The economic backdrop remains favorable for the housing market, which is helping home sales level out." For example, Texas saw a healthy 11% rise in home sales.