While the housing market continued to improve in recent months, uncertainty in the country's economy could make further housing recovery more complicated to close out the year.
A report from Fannie Mae's Economic & Research Strategic Group indicated that there are still major issues heading into next year that could have a major effect on the market. The debt ceiling and the fiscal cliff could both hurt the market, while the worldwide economic struggles are a continued concern.
Despite these worries, some experts are still optimistic for the housing market's future.
"With these issues hanging in the balance, we believe risks remain tilted to the downside," said Doug Duncan, chief economist for Fannie Mae. "News from the housing sector is more positive, with various indicators showing continued momentum toward a sustainable, long-term recovery. Notably, home prices are inching back into positive territory on a year-over-year basis."
There are positives still present in the market, and investment in housing is at a high level. According to property data from the Department of Commerce, housing completions improved more than 13 percent in September from the same point last year, which may help boost property data reports.