Although it has been four years since the burst of the housing bubble, industry experts and analysts noted that the housing market has yet to fully recover. They said that despite the slight improvement in home sales and real estate prices in recent months, the housing market is still expected to slow down further in the later part of the year.

In a recent report published by USNews.com, experts cite various reasons why the housing market is still in the doldrums. According to Timothy Dwyer, chief executive officer of Entitle Direct, the high unemployment rate is one of the reasons that discourage potential home buyers from purchasing real estate. He stressed that many consumers are hesitating to buy a home because they are either out of work or are worried about losing their jobs, which will make mortgage payments more difficult for them. The sluggish labor market also forces consumers to just move in with friends or family members instead of buying a new house.

Foreclosures and falling home prices were also to blame for the struggling housing market. With the growing number of homeowners who are having a hard time keeping up with mortgage payments, experts have predicted that a new wave of foreclosures are expected to come in the second half of 2010. This means that there will be an oversupply of properties in the market, which will further bring down home prices.

Analysts stressed that unless an oversupply of inventories has been taken care of, it will be difficult to restore balance in the housing market and for home prices to increase.

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