Wednesday, December 14th, 2011, 2:56 pm

The worst moment of the credit crisis came and went and with it Washington's political will to enact meaningful change to heal the suffering housing market and the financial condition of its homeowners, according to the chief economist at real estate data firm Trulia.

Jed Kolko said Wednesday that the housing market is in better shape now than in early 2009, but Americans are more pessimistic about what both the presidential administration and Congress can do to get back to normal, which, four years into the housing crisis, he and most economists say is years away.

Furthermore, the presidential election season won't be a catalyst.

"In election years, politicians don't take risks," Kolko said in response to HousingWire questioning. "Election years are more talk and less action. With the economy slowly recovering, inventories declining and prices no longer plummeting, the housing market is not in enough of a crisis to force political opponents together."

The summer's grueling debt ceiling debate that led to a Standard & Poor's August downgrade in the nation's credit ratings and the lack of results from the super committee in hashing out a plan to cut the federal budget impaired American confidence in Congress.

"Five years of the housing crisis has hardened Americans," Kolko said.

Recovery in the housing market depends on consumer confidence, and lowering defaults and foreclosures is key to rebuilding that confidence.

"Americans won’t believe our economy is improving until they see real proof," Kolko said. "As long as there are foreclosed homes and lingering for-sale signs in neighborhoods across the country, people are faced with constant, everyday reminders that the housing market is still struggling."

A new Trulia survey found that 57% of Democrats and 73% of Republicans believe housing will hurt President Barack Obama’s chance of reelection, and with the U.S. economy still struggling, 54% of Americans are not confident the president can stabilize the housing market in the next 12 months. This is a notable increase since Obama took office in 2009 when only 32% shared this sentiment.

The survey found that most Americans agree that fixing the economy should come before any housing policy. 78% of Republicans and 82% of Democrats said lowering unemployment is an extremely or very important public policy goal, followed by raising employment growth and reducing the federal budget deficit, which now stands at $1.3 trillion.

However, Kolko said some government housing policies will offer aid such as the recent expansion of HARP, which will lead to more refinancing, and the Federal Housing Finance Agency's proposal to put up government-owned home for sale or rent. But he added that most people aren't qualified to refinance under the new HARP and most vacant or foreclosed homes aren't owned by the government.

"These policies are not silver bullets for ending the housing crisis," he said. "I don't expect policy break-through proposals in 2012."

When asked about specific policies and proposals, the survey respondents called for efforts to help homeowners stay in their homes as opposed to helping people buy homes. Most Americans favored making it easier for homeowners to refinance, while only 46% wanted to raise the Fannie Mae and Freddie Mac conforming loan limit.

Kolko predicted "with 100% certainty that housing will remain a local game," saying that local markets will have their own trends in 2012.

"Often crisis give us the opportunity to overcome traditional political divisions and gives elected officials a chance to make sometimes heroic policy proposals that don't come outside of crisis," Kolko said. "But we've missed the opportunity for Congress and the administration to come together and make major  change."

Write to Justin T. Hilley.

Follow him on Twitter @JustinHilley.