#1 Homes are way to expensive compared to average salaries #2 High unemployment risk. No one wants to buy a house today if they could lose a job tomorrow. #3 Risk of relocation due to layoffs and consolidation of jobs, With the limited liquidity of homes and wide bid/ask prices it would be devistating for someone to buy a house and be forced to relocate and unable to sell. Too many risks. Trying to artificially force housing prices up with tax credits,etc.. is not the solution. We need to let the markets correct naturally and let the bad banks fail.