August 8, 2007 (LPAC)--In another sign of the collapsing housing market, hit by credit tightening in mortgage lending amid falling sales, the largest U.S. builder of luxury homes, Toll Brothers, said third-quarter revenue dropped 21% compared to a year earlier to $1.21 billion.

The company declined to make an earnings forecast for this year, warning that "the pace of home sales could slow further". In preliminary results, Toll said the value of net contracts fell 31% to $727.1 million; while the cancellation rate, or cancellations divided by signed contracts, climbed to 24% from 19% in the second quarter.

Meanwhile, the National Association of Realtors said it expects home sales will fall more than previously forecast due to "mortgage disruptions". Lowering its sales forecast for the sixth month in a row, NAR sees existing-home sales falling 6.8% to 6.04 million units this year, down from 6.11 million units predicted last month.