Some level of certainty and stability returned to the U.S. housing market in 2012, providing a solid foundation for the market to build on in 2013. But there are still significant risks that threaten this hard-won stability and could trip up some local markets trying to make the tricky transition from stability to strength. U.S. Foreclosures Continue Slow Descent At a national level and in states with relatively efficient foreclosure processes, foreclosure activity will not pose a significant threat to housing market stability. U.S. foreclosure activity will continue its slow descent off the peak of 2.9 million properties with foreclosure filings in 2010 and back toward a more normal level of around 500,000 properties with foreclosure filings a year – although don’t expect to see a completely normal foreclosure year until 2015. Foreclosure Flare-Ups Rising foreclosure activity in certain markets at the beginning and end of the year could threaten the stability in those ma...

Despite the ongoing housing slump, a poll released by real estate marketer Zillow shows that 42 percent of buyers still believe homes appreciate at a rate of seven percent per year. Zillow notes that housing prices have generally tended down in the the last five years and that even historical averages put appreciation at no more than two of five percent per year. While Zillow poll found most buyers generally knowledgeable about the buying process, 41 percent said they believed purchasers are required ti have private mortgage insurance and 56 percent didn't know the difference between and appraiser and an inspector. *Compliments of Old Republic National Title Insurance Co.

Here's another great article brought to you courtesy of Old Republic Title Insurance: An improved employment forecast for the remainder of the year will help improve the housing picture as well, according to Frank Nothaft, chief economist for Freddie Mac. Nothaft said he anticipates an unemployment rate of 8.6 percent by the end of the year, down from more than nine percent. Mortgage rates will likely remain between 4.5percent and five percent. The economist noted that more financing is becoming available to the rental housing construction sector and that vacancy rates are falling and rents rising, all harbingers of a housing turnaround.