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ECONOMISTS MORE OPTIMISTIC ON HOUSING PRICES mists are making more bullish predictions about the recovery, according to Zillow. The company released the results of its As the housing market strengthens, econo- most recent Home Price Expectations Survey, showing economists polled expect home prices to rise by a total of 2.3 percent in 2012. This change in sentiment is a major turn- around from June when respondents predicted home prices would experience a net decline this year. Predictions were varied, but respondents seemed to agree on a positive trend: The most optimistic quartile of panelists predicted a 4.4 percent price increase in 2012, and the most pessimistic panel predicted an average increase of 0.3 percent. Economists surveyed also revised their more eligibility restrictions placed on it while 11 percent say it should remain as-is. "Although the mortgage interest deduction remains enormously popular with existing and aspiring homeowners, it costs the federal gov- ernment about $90 billion a year," said Terry Loebs, founder of Pulsenomics LLC, the company that conducted the survey for Zillow. "Time will tell whether the unprecedented fiscal challenges facing the U.S., coupled with a housing market now on the mend, will embolden more policymakers to touch this lightning rod," Loebs continued. The survey panel also gave input on forecasts for 2013-2016, predicting steady price growth each year. "This is further evidence that we're seeing a true recovery in the housing market," said Dr. Stan Humphries, chief economist for Zillow. "Not since mid-2010—in the midst of 34 the homebuyer tax credits—have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery in the absence of an artificial stimulant like the tax credits." In addition, the survey shows more than half of respondents want to eliminate the mortgage interest tax deduction, with 50 per- cent saying it should phase out gradually and 10 percent wanting it cut as soon as possible. Thirty percent said the deduction should have government policies and the election. When asked about the use of eminent domain to seize selected underwater (but current) mort- gages, an overwhelming 91 percent said they oppose the idea. Some county governments are evaluating such a proposal, and the fight has even gone to Capitol Hill. As far as the presidential election, Mitt Romney had more support from those surveyed with 45 percent saying they would vote for him over President Obama's 34 percent. Regardless, 47 percent of respondents said Obama would promote more significant housing policy changes while 32 percent said they don't think there would be any real difference with either candidate.