New Reports Show Weakness in Housing Market

Now that the homebuyers tax credit has expired, the housing market remains weak and faces serious threats, say a pair of studies released in the last 24 hours. But demographics point to an eventual recovery and maybe even a shortage of homes down the road.

“Several factors could impede the nascent housing recovery, including serious problems in obtaining financing for the production of housing, faulty appraisal practices, and competition from short sales and foreclosed properties,” said Bob Jones, chairman of the National Association of Homebuilders, which released its Housing Market Index this morning. The index dropped 5 points from May levels, signifying that home builders were losing confidence in the market.

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