There has been a great deal of excitement surrounding the housing outlook for 2012. Last year ended on a fairly solid note, with sales appearing to improve, inventories apparently declining and builder optimism posting four increases in a row. There is still work to be done before a self-sustaining recovery can take place.

National Association of REALTORS® President Moe Veissi made the following statement, regarding President Obama’s State of the Union address this week. “The National Association of REALTORS® commends President Obama for his remarks in support of homeowners and the struggling housing market during tonight’s State of the Union address. As leading advocates for homeownership, REALTORS® know that restoring the health of the housing market is the only way to achieve a broader economic recovery.

The economy is improving, the Federal Reserve said Wednesday, but not enough to warrant higher interest rates for at least two-and-ahalf more years.

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

While 2011 was clearly a challenging year, there is a lot to be positive about looking ahead. Economically, while buffeted by natural disasters and fiscal policy indecisiveness at home and a European sovereign debt crisis abroad, the U.S. economy was able to stave off economic stagnation in 2011 and is likely to continue to do so in 2012.

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales. While admitting home sales “are still very low,” Paul Dales, chief economist at Capital Economics, says “it is clear that housing recovery is now well underway.” The evidence: home sales have been on the rise for the past three months, posting a 5 percent increase in December.

Update on California's economic forecast as of January 2012

Update on economic forecast for California as of January 2012

Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors.

Home prices and mortgages rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the last 15 years and is less expensive than renting in a growing number of cities.

Luxury home values rose in Los Angeles, San Diego and San Francisco in the third quarter of 2011 compared to the second quarter, according to the First Republic Prestige Home Index(TM) by First Republic Bank, a leading private bank and wealth management company.

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.