Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements.
When the housing market bubble burst in 2007, it had a devastating effect on an industry that rely on the amercian dream of home ownership.
The AP reports that the housing market continues to struggle in this down economy. Now that the $8000.00 federal tax credit has ended, housing sales have fallen off drasticlly. Builders across the nation believe it will remain sluggish for the rest of the year.