Will the Housing market return to 2005 prices within the next 15 to 20 years?  A few reasons why the housing market peaks may take longer than anticipated, if ever.

1. Home sales are dependent upon consumer confidence in the economy, which includes both their personal economy as well as that of the nation. 2. Loss of home equity will limit the inventory for buyers wishing to move up. Loss of equity and declining home values means fewer sellers will have the resources to purchase another home.3. Tougher lending restrictions combined with declining credit scores fewer buyers will qualify for home loans. 4. The continued high rate of foreclosures and REOs will depress both the housing market and the hopes of many potential buyers. Millions who have experienced foreclosure will be automatically ousted from the buying pool. 5. Slow increase in mortgage rates will reduce the number of qualified buyers. As we experience the higher mortgage payments associated with rising interest rates, many will fail to qualify for loans on the homes of their choice6. A raise in the housing market cannot occur as long as we have unusually high unemployment. Experts say unemployment could remain at higher than normal levels for several years.