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In addition, high unemployment and tight mortgage lending standards have kept buyers away.
It pointed to "an unusually high cancellation rate" of 68percentt, which it attributed to the tight mortgage market in August and September.
The housing market, which collapsed in the 2007-9 recession, has been a relatively bright spot in the economy this year, although it remains hobbled by tight mortgage availability and continuing foreclosures.
Fannie Mae and Freddie Mac, the biggest sources of financing for American home loans, helped give the market some ballast after the government removed restrictions on the size of their portfolios, offering a chance to ease an extremely tight mortgage market.
Aside from a tight mortgage market, the problem in preventing foreclosures has to do with homeowners losing their jobs.
Tight mortgage credit conditions are continuing to make it difficult for many families to buy homes, despite record-low mortgage interest rates that have helped make housing very affordable..
Similar(54)
Some of this is pragmatic: high rents and tight mortgage-lending criteria make it expensive and difficult to fly the nest.
Houses are now bad investments, and tight mortgage-lending standards and high unemployment will continue to limit new buyers.
One culprit could be tighter mortgage credit.
The Chancellor's speech at the Mansion House on 12 June, threatening tighter mortgage lending, triggered sharp falls in housebuilders' shares.
The prospect of tighter mortgage rules and higher interest rates hit shares in housebuilders Barratt Developments, Persimmon and Taylor Wimpey.
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