Job Market Still Holding Back Housing

The one factor that would certainly push up demand for homes is increased employment, but many analysts are now predicting that employment won’t revive significantly until 2011.

This doesn’t bode well for the immediate recovery of the housing market. "If you're looking for a silver lining in housing, you aren't going to find it here," Mike Larson of Weiss Research said in a report.

"The overall economy is rolling over, consumer confidence is slumping, and, most importantly, we just aren't creating jobs," Larson added. "With so many Americans unemployed or underemployed, the housing market is going to keep hurting."

Source: U.S. News & World Report, Luke Mullins (07/01/2010)