2012: First Year Of The Housing Recovery

 The U.S. economy may have escaped another Great Depression, but the U.S. housing market has not been so lucky. From peak levels five years ago, home prices are down more than 30 percent, combined sales of new and existing homes are nearly 40 percent lower, and new home construction has plunged more than 70 percent. The road to recovery contains plenty of obstacles, including sluggish labor markets, restrictions on mortgage lending, and potentially damaging unknowns about U.S. fiscal policy and the European debt crisis. However, several factors are falling into place that will support  gradual progress in the coming year as long as the economy doesn't tip back into recession.