It is expected that the rate of home sales in the US will dip further this year but the price drop will be less intense than previously observed. The National Association of Realtors sliced its sales forecast for the sixth straight month but cut back its predicted drop in existing home values.

According to NAR, existing-home sales should hit a pace of 6.04 million units this year, down from last month's prediction of 6.11 million units.

That number is still above the 5.75 million-unit annual rate that the trade association reported for the month of June. In a statement on Wednesday, the NAR's chief economist, Lawrence Yun, predicted "a modest upturn for existing-home sales toward the end of the year."

Prospective homeowners have faced stricter lending policies in recent months as investors have decreased their funding in the once-hot mortgage finance market.

Yun said the recent disruptions "will hold back sales over the short term, but long-term fundamentals are favorable," particularly the growing U.S. population.

The association mentioned in their monthly econmic outlook that the national median sales price for existing homes should decrease by 1.2 percent to $219,300 this year. Last month, the trade group said prices should slide ny 1.4 percent.

The median for new-home price will probably fall to $240,800 or 2.3 percent this year, the NAR said in its monthly economic outlook.