The housing market is starting to head back in the right direction. Home buyers are driving prices higher and higher. The market still has obstacles though. Here are the biggest challenges the housing market still faces.
Tight credit- Prospective buyers are still struggling to get loan approvals. Due to lenders being overly cautious, the housing market can't make a full recovery quite yet.
Lack of inventory- There are not enough homes for sale right now to satisfy the demand. As the economy recovers, more people are testing the home buying market. This is causing bidding wars amongst potential home buyers.
Negative equity- Even though it is currently a seller's market, many people are still upside down on their homes and therefore can't sell. As home prices go up, more people will startl listing their homes becuase the prices will start getting closer to what they paid for it.
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