The market of continued to cool in February, a trend that the industry's main association says is fallout from tougher borrowing and lending rules brought in last summer.

The Canadian Real Estate Association also cut its forecast Friday for sales this year after a weak second half of 2012 that saw sales slow more than it expected some markets.

The association said 2013 sales are expected to total 441,500 units, down 2.9 per cent from 454,573 in 2012. The revised outlook compared with earlier expectations for a two per cent drop in sales.

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