A new poll from the Associated Press shows that the majority of economists believe a recession is not likely in the next twelve months. Forty-three economists of varying backgrounds were interviewed for the poll, and those surveyed believed that the likelihood of another recession is only 26 percent.

The fear of another recession has prevented many potential homebuyers from entering into the real estate market. It is the same fear that has caused households to reduce their consumer spending -- people are loath to part with their hard-earned money in case the economy, instead of recovering, takes another dip into a second recession.

The economists surveyed also predicted that the economy will be weak in the near term, with only incremental improvements that will difficult for the average person to notice. They blame the devastated real estate market, high rates of unemployment, and the lack of consumer spending for the lack of robust growth. Consumer spending fuels 70 percent of the economy, and it is understandable that high unemployment and the financial damage done to homeowners by the market crash are restricting that all-important spending confidence.

The solution is stabilization of the housing market, along with job creation. Consumers are still trying to put their lives back together after the last recession. So many consumers lost substantial value in their homes, or lost them to foreclosure. Many others were derailed by false promises of loan modifications or have been unable to move to areas with more jobs. Consumers may not be eager to go through such turmoil again, and are likely to be cautious going forward.

Economists predict that gains will be made in the areas of job creation, real estate prices and consumer spending. However, they also thought those gains would be so gradual as to not be noticed by most. Never fear, they urge -- 2012 should bring in higher home prices, more jobs, higher consumer spending and greater economic growth.

Source: Village Soup, "Daily Real Estate News: Economists Say Recession is NOT Likely," Jaret & Cohn Real Estate, Aug. 26, 2011