More signs of trouble in the U.S. housing market emerged Friday as sales of existing homes tumbled and prices fell for a ninth month in a row.

The National Association of Realtors said sales of existing homes dropped by 2.6 per cent in April to a seasonally adjusted annual rate of 5.99 million. That was the weakest pace since June 2003.

In addition, the median sale price of a house fell to $220,900 US, a drop of 0.8 per cent from April 2006.

The U.S. housing market has been sideswiped by troubles in the subprime market, including rising delinquencies and defaults. The subprime mortgage sector caters to people with weaker credit.

The fall in house sales also accompanied a rise in the number of properties on the market. Unsold homes climbed to a record 4.2 million in April, meaning it would take over eight months to consume that supply at the current pace of sales.

"Existing home price deflation will probably not only persist during the months ahead, it will also likely deepen given the stock of unsold homes," said BMO Capital Markets economist Michael Gregory in a release.

"There appears to be a lot more housing correction to come," he said.

 

 

With files from Associated Press