New Delhi: National Housing Bank (NHB), the regulator for housing finance companies, today said there has been price correction in the housing market and it is likely to continue in some pockets, including the NCR region.

"There has been softening of prices in the housing market in some cities including NCR region. This trend may continue for some time," NHB Chairman and Managing Director R V Verma said after releasing Report on Trend and Progress of Housing in India for 2012.

In the national capital region (NCR), he said, price correction has happened due to over supply. Some more correction may take place in the coming days.

He, however, said it is difficult to predict by how much prices could correct.

Citing trend from the latest Residex, Verma said, there has been 3-4 per cent decline in the housing prices in the 11 cities but prices rose marginally or remained stabled in nine cities.

He said the housing sector would witness a growth of 20 per cent during the current fiscal against 17 per cent in the previous fiscal.

"Demand drivers include the growing middle class, income levels of the people, cyclical conditions, urbanisation," he said.

The demand would also go up because of moderation in interest rate due to recent RBI monetary action.

The housing loan market is about Rs 6.61 lakh crore at the end of March 2012. Of this, housing finance companies contribution was about Rs 2.60 lakh crore.

Talking about the report, he said, it outlines the overview of the housing sector, current policy environment, global anddomestic economic trends, role & performance of NHB, HFCs, Banks, and emerging trends in the housing finance industry as well as outlook.

As per the report, though the Indian economy witnessed slow growth in the manufacturing and the services sector, the housing sector in specific was not hit by the slowdown as the regulators monitored the sector by specifying capital requirements, applying adequate risk management systems and maintaining the asset quality.

The mortgage and housing finance market of India is on a commendable traction despite the turbulent trend prevailing in the micro and macro economic conditions globally, it said, adding, the sector has been demonstrating the same resilience as it did during the global meltdown in 2007-09.

Steady growth of the housing sector is due to enhanced risk management systems and a constant vigil on the exposure limits, capital requirements and asset qualities while benefiting all the stake holders viz the lending institutions and the borrowers, he said.