‘People don’t trust the housing market’

With today’s drab news about U.S. housing sales falling to their lowest levels in 15 years, analysts are looking at all angles of the crisis to try and figure out where to go from here. Enter psychology. Let’s take a trip to the couch. Tony Sanders, a professor of real estate and finance at George Mason University in Fairfax, Va.,  said this morning that wary homeowners seem to be holding on to what they’ve got as the recession continues to whipsaw  their confidence. “They are terrified,” Sanders said. “They are fearful of the market, of pending tax increases, the perpetuation of the recession, not being able to get a job. This is the big moving season for most people and there is not much movement. It’s really out of the ordinary.”

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