According to behavioral psychologist Rom Brafman, who co-wrote "Sway: The Irresistible Pull of Irrational Behavior," potential homebuyers want to get the best deal so they want to avoid the situation where they are buying while prices of lender and tax foreclosure properties are going down and not when they are at their lowest point.

Housing analysts and economists have been analyzing consumer behavior during these difficult times in order to help the government develop a response and help rejuvenate the economy. They found that there are psychological barriers that consumers must overcome before they buy a home from among the low-priced lender and tax foreclosure properties.

One psychological barrier is the thought that the price will still go down and therefore the right thing to do is wait for a few more months. Another barrier is job uncertainty. With the high number of companies cutting jobs or closing operations, even professionals in stable enterprises are feeling the uncertainty of employment and the adverse effects of lender and tax foreclosure properties. Where would they get the money to pay the house if they are laid off just like the others that they have seen or read about?

The third barrier is the investment environment. Prospective investors doubt if they can make money in a housing market overloaded with lender and tax foreclosure properties and shunned by prospective homebuyers waiting for prices to go down further.

The fourth is the individual's tendency to analyze what really is important to oneself during difficult times. Many persons, according to Nicolas Retsinas, head of the Harvard University's Joint Center for Housing Studies, put more time and effort in analyzing whether a particular home is really what they want or whether it is located in a place that they really like to live in. Retsinas explained the tendency as an effort to redefine the home.

Housing experts say the point where the prospective homebuyers actually buy is the point that they realize they need a home for themselves and their families and they need to buy now. They affirm themselves that what they are buying is not for investment but for their own need and comfort. At this point, they buy a home whether lender and tax foreclosure properties are at their lowest price levels or not.