As banks continue to unravel underwater mortgages and homes are put on the market for resale in droves, it is uncertain how long the housing market will have to wait.

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"They're housing preferences can't be satisfied in the resale market, " Toll Brothers Chief Financial Officer Joel Rassman told the BBC.

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Dugas said that market conditions are expected to remain relatively stable for the rest of the year, but high resale inventory, particularly foreclosure inventory, expiration of the tax credit and weak consumer confidence could limit the pace of housing's recovery for several more quarters.

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