The greatest challenge for buyers, at this time, would be to find a listing that lasts longer than 1 day, so they have the opportunity to purchase it !!!

The greatest challenge for sellers, at this time, would be to not fall for some of the "slick empty promises" from potential listing agents.....

Inventory and pricing. Not necessarily in that or any order.

Low inventories make searching more difficult.

1. Sellers: some aren't realistic about their home value if they're not in the hottest selling area.

2. Buyers: Inventory is low in the hottest areas.

Overall, we have baby boomers and young professionals looking for the same house when it comes to size and price.

For buyers, the lack of inventory, multiple offer situations and high price points.

Inna Ivchenko - I feel the answer is BOTH - when they are NOT educated and do not understand the market.

If buyers do not understand the current market dynamics of limited inventory and are not willing to come up. that is a challenge.

If a seller expects 20% more than the current market can bring a buyer at, that is a challenge.

Drowning in information, starving for wisdom. They need a professional they can trust and make informed decisions with.

Basically echoing the same as everyone else.

Buyers- Lack of inventory. Not finding everything you want because of lack of inventory, and not being aggressive enough when a house first comes on the market. I don’t care if it’s the first home you go see, if it checks off most of your boxes, and it just came on the market, you better not let it get to the open house or there will more than likely be multiple offers. You may not see another one like it for weeks or months.

Sellers- Getting greedy and over pricing homes. Not accepting a strong offer from a qualified buyer before an open house. Waiting on a bigger payday when a buyer offers you asking or close to it, could cost you in the end. Statistically the first offer is normally the best offer. Some buyers are turned off my multiple offer situations and will back out. You may be chasing the buyer you snubbed after the open house. By then they may have either found a house or not want to work with you.

Check out how to sell my home fast
http://richmondhomesales.com/p/12058/how-to-sell-my-home-fast

Most challenges have been listed already in this thread, best to focus on solutions.

For sellers: When they turn into buyers

For buyers: Finding homes in good condition.  Prices are high and competition fierce for homes in good condition.

1.   Sellers over $400K, too much inventory.

2.   Buyers under $250K, not enough inventory.

We Need SELLERS to step up to the plate and put their houses on the market.  Inventory levels are LOW, LOW, LOW and the Buyers are practically standing in line to make an offer.  I wrote an offer on a house two days Ago ... on the market 2 days and 12 offers in.  Crazy!  Now is the time to Sell ... just sayin' ... IMHO

1. Sellers - most of the time, they are also going to be buyers here and they sell their homes, having no place to go due to the low inventory.

2. Buyers - competing with far more buyers in today's market - they have to be prepared to compete with their Offers too!

I'm with Michael Jacobs on this one!

Inna, we have a real circular dilemma. We have low inventory. So, sellers won't list because their is nowhere to move, and buyers can't buy because sellers won't list. 

Buyers: Cannot complete with bidding wars with those that are willing to pay MUCH more for a home and waive all contingencies to get it.  

Sellers:  Are laughing their way to the bank.

Sellers need a place ot move to so are relunctant to sell without having another home. Not all can afford 2 homes at once.

Buyers are constrained by the tight inventory and have to move so quickly they don't have time to think. Many do not like this.

1. finding a place to live after you sell

2. Interest rates and multiple offers

Inna,

Each market is different.  We see that constantly as we move around the US.  Some places have buyers markets, whereas others have sellers market.  

the only sellers facing challenges in my market are those with dreaming list prices.

buyers on the other hand in most price points are facing very low inventory and multiple offer situations and appraisals no cooperating with  offer prices and having to come out of pocket with the difference while the market catches up to their offers.

For buyers it is finding a house to buy. For sellers it is finding a house to buy in order to want to sell. Then needing to sell in order to buy

1. Sellers - a place to move into

2. Buyers - a place to move into

Price

Inventory scarcity

Affordability.

Affordable housing lack affects buyers.

1

Renters are selective here these days. Want brand new homes, new yard. Their choice of color(paint). Want it cheap. 

for the sellers...greed

for the buyers....doubt

Mine is finding homes under $200,000 for FHA buyers.  

Sellers - finding their next home. 

Buyers - finding their next home. 

Sellers - setting a realistic price.  Buyers - understanding that a well priced home should not be negotiated but rather offered at least full price - and don't be disapppointed if you lose out on a multiple offer.

Inna Ivchenko sellers, cash buyers, low inventory.

1. Buyers... not enough inventory and having to make decisions quickly and probably paying more than they thought they would need to do.

2. Sellers... not enough inventory to find the next house when their listing sells quickly.

Both,  Sellers are afraid they can not find a house if their sells fast   Buyers, are afraid that they are price out of the market.   Great question.

Buyers have the biggest challenge in our market - low inventory, multiple offers.

Lack of inventory and pricing issues are leading the field!