According to a story in the Los Angeles Times, by Ricardo Lopez, the economists at UCLA Anderson Forecast are predicting a real estate recovery next year in California. As the economy continues to be sluggish.
A big reason is the unemployment rate which remains high at over 10% in May and they don’t expect that to get better until the middle of next year.
The good news in the story is that California can expect dramatic gains in the next few years after the excess inventory is absorbed and housing starts increase.
In another article Sluggish Economy Continues Despite Improvements in the Housing Market , The Anderson Schools full report.