Sales of existing and new homes nationwide remain depressed and at record lows as a result of many consumers being stuck in underwater homes, according to a recent report from the Cambridge-based Joint Center for Housing Studies of Harvard University.

Rising vacancies and foreclosures continue to place downward pressure on prices. In heavily concentrated foreclosures areas, property markets are in "turmoil," according to a statement. The study reveals that 10 percent of neighborhoods across the country account for nearly half of all foreclosures in 2010.

"The state of the nation’s housing is sobering," said Eric S. Belsky, managing director of the Joint Center for Housing Studies. "Total housing construction over the previous decade now barely exceeds the lowest level of any 10-year period in records dating back to 1974, but vacancies remain elevated because the recession has driven demand down so sharply."

He added: "While the sharp declines in both home prices and interest rates have left homes in many places more affordable than they have been in decades, stubbornly high unemployment and tightened lending standards have limited the ability of many first-time buyers to capitalize on the situation."

The rental market appears to be the only beacon of light in the housing market, according to the study.

"Rental housing markets are tightening and may begin to lead a modest recovery in housing construction this year," said Chris Herbert, research director of the Joint Center for Housing Studies. "And after three consecutive months of employment growth over 200,000, there is new hope that a lasting recovery in the economy will materialize and spur an increase in housing demand and home sales."