1) Unemployment
Consumers haven't been able to spending much on anything due to fearful on the possibility to get laid off. The demand of the housing is driven by the employment.

2) Credit Availability
Banks reluctant to lend although Government have injects liquidity into market. If you are with good credit and a job, it's easy to get loans. The rests without good credit and a job are kicked out of the market.

3) Price Pressure
Housing prices are still too high to attract buyers but too low for the many sellers who are underwater—owing more than their homes are worth—on their mortgages.

4) Appraisals
The National Association of Realtors said that it is impossible to get a fair assessment done of home values that fall well under the agreed-upon prices between buyers and sellers.

5) Short Sales
Short sales occur when an industry hope to get rid of the excess inventory and the mortgage holder agrees to the sale of a property even though it is less than the amount owed.

Banks, though, reluctant to agree to the sales due to banks desire to hold the properties until values go up, according to critics. Banks defended themselves saying that buyers are trying to take advantage of the situation by submitting low-ball offers.