On December 14th, Freddie Mac released its Economic Outlook for 2012 . The report predicts positive movement with the economy, unemployment and housing activity; but all will be very small improvements. Predicted low rates through mid-2012 will help the housing market; but the continued glut of distressed properties and uncertainty of buyers will continue to put a damper on things.
I think that Frank Nothaft, Chief Economist at Freddie Mac, summed it up best in the following quote: “While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly. Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year ending in November is essential. In housing, look for the rental market to lead the way and for some improvement in the single-family space in parts of the country. All told, next year will be another bumpy ride.”