U.S. President Barack Obama yesterday warned it would take two years for the U.S. housing market to recover, as he faced a grilling on the lagging recovery on the last day of his bus tour.

    Obama parried probing questions on farming regulations, the real estate sector and exactly what he was doing to create jobs, in a town hall-style meeting in Illinois that reflected public impatience over the economy.

    One woman, a real estate agent, asked him in the forum in a seed corn warehouse how he could improve the struggling sector.

    She said in May and June she started to see a pickup in her business, but then the deficit debate in Congress started to sap confidence out of people.

    “It will probably take this year and next for us to see a slow appreciation again in the housing market,” Obama said, saying Washington politicians should refrain from renewed brinkmanship which could make the situation worse.

    Obama said his administration has been pushing banks to modify loans for people who are having trouble paying their mortgages.

    Another woman bluntly asked Obama, speaking against a backdrop of American flags and pallets of seed sacks, what he could do to create jobs now.

    The president said his administration was working on several initiatives, including an effort to put Iraq and Afghan war veterans to work, but again lashed Republicans for blocking his job-creating efforts in Congress.

    As aides said Obama would roll out a new jobs and economy plan in September, the president also slammed Republicans for refusing to include tax rises on the wealthy along with spending reductions in a deficit cutting bid.

    (SD-Agencies)