Real Estate 2012: The Year the Housing Market Turned the Corner

2012 will probably be considered the year that a sinking housing market finally hit bottom and began to rise again. Home prices, home sales and new home construction all substantially increased amid shrinking inventory and record-low mortgage rates. Adding to the drama (and perhaps aiding the recovery): Lenders finally agreed to atone for illegally foreclosing on thousands of borrowers, and politicians and industry stakeholders seriously began talking about mortgage-debt forgiveness.

Here's a look back at 2012's major developments in residential real estate -- along with insight on what lies ahead for the housing market in 2013.

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