Economists Outlook is Positive

The Case-Shiller home price index showed that home prices are stabilizing. NAR’s median home price also earlier showed similar stabilizing trends.

Perhaps consumer confidence regarding home buying will begin to revive. There could have been a sizable number of financially qualified potential homebuyers in the past two years who have been waiting for lower home prices before striking. Now that prices are showing essentially no further declines, some of these potential buyers could enter the market.

The hard-hit California market has made a speedy recovery. After falling big time, home values are rising the fastest in San Francisco, San Diego, and Los Angeles, according to the latest Case-Shiller data.