Let's consider Smart Money's story, a piece which comes with the eye-catching headline: "Is California Real Estate Turning a Corner?" Excerpt: "While California home prices are still far below the peak levels of 2006, some economists think California is on its way out of the woods. “Now we’re seeing the interior [of the state] has stabilized – because prices have fallen by 50% to 60% already,” says Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate. The combination of cuts in price, reductions in mortgage rates and all sorts of state and federal programs to incentivize buying activity have brought stability. “Prices are increasing only modestly, but for all intents and purposes, they’ve stopped falling,” Gabriel says.
Anecdotally, too, real?estate?agents are seeing increased activity in their local areas." The experts cite less inventory, and fewer days on the market for homes. The folks at Wall Street Cheat Sheet are far more cynical: "On April 30, the Home Buyer Tax Credit expires. If you’re a buyer, you shouldn’t care because when the credit disappears house prices will drop the same amount. If you’re a seller or real estate agent, you should be scared shitless because you’ll need to drop your price the same amount to keep people interested."
· California Real Estate Turning a Corner? [SmartMoney.com]