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Commentary

6 Reasons Housing Prices Aren't Rising

Investors should be cautious about betting on a rising residential real estate market.

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The rise and fall of the housing market was one of the more spectacular bubbles of recent memory. And the bursting of that bubble is still having a profound impact on the economy, even though we're now several years past the peak. Yet, it doesn't look like housing prices will be bouncing back anytime soon.

Last week, I examined the perfect storm of factors that led to the incredible inflation of housing prices and some of the reasons housing prices have fallen back to earth. Although I do believe that prices have stabilized, there are many headwinds that will make it hard to see impressive gains coming anytime soon. This week, we will look at six reasons why demand isn't likely to pick up.

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Bearemy Glaser does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.