Housing will not rebound to its former exuberance once the economy rebounds, says Bill Gross, manager of bond giant Pimco.

Gross said investors will not trust their homes to give them good returns as they did in the past, and that housing will not lead the economy forward.

“Housing cannot lead us out of this big R recession no matter what the recent Case-Shiller home price numbers may suggest,” Gross writes in his September outlook.

Investors were buoyed by new home sales increasing by 9.6 percent in July, according to the Commerce Department. Home builders such as Lennar and KB Homes saw their shares increase.

Yet the number of Americans owning homes could fall to 65 percent from a peak of 69 percent, reported Fortune magazine.

Americans should not expect a robust bull market, Gross said.

The new economy will pay off its debt, increase its savings, and see more “delevering, deglobalization, and regulation,” he said.

“All of those three in combination, to us at Pimco, means that if you are a child of the bull market, it’s time to grow up and become a chastened adult,” Gross writes.

“It’s time to recognize that things have changed and that they will continue to change for the next — yes, the next 10 years and maybe even the next 20 years.”

The United States will see additional foreclosures in 2009, said Fannie Mae CEO Michael Williams, Bloomberg reported.

The housing market faces a "long road ahead" before it rebounds, he said.