Wells Fargo report praises national housing market

The latest Wells Fargo's Economic Commentary sings the national housing market's praises.

As the report says: The housing recovery finally asserted itself in 2012, with nearly every key metric posting measurable improvement from prior years. 

Sales and prices both rebounded solidly this past year, the report says, and new home construction steadily gained momentum over the course of the year. 

"Progress has also been made dealing with the imbalances left over from the housing boom," the report says.  

The report describes the recovery as "sustainable" and "self-reinforcing" but cautions that challenges remain, such as how large a role investor purchases have played in stabilizing home prices; how much credit availability has truly improved; and, what the government’s role in mortgage finance will ultimately be.