David Lereah, NAR’s chief economist, predicts that tighter underwriting practices may cause total home sales to fall by about 100,000 to 250,000 nationally, or no more than 3 percent a year over the next two years.

“Foreclosures are increasing inventories in certain local markets,” Lereah says. “The projected flood of foreclosures are problematic and will add to the already loose housing supply in some local markets, but these local markets are exhibiting healthy economic activity, enabling them to be able to absorb increases in foreclosures."

Source: Subprime Reforms to Have Slight Market Impact, Realtor.org