The California Credit Union League’s new California housing market forecast says …

• Some stabilization in late 2009 with an increase of home sales especially in the lower priced segment of the market.
• Home sale increase will likely begin with the coastal regions of the state.
• In Los Angeles and Orange County, median home price to increase 8% “due to an uptick in demand” by early 2010.
• 5% increase in state median price by 2010.
• Upturn will be slow and the environment will remain difficult for some time.
• California credit unions “have already begun to see an increase in mortgage applications for first-time homebuyers due in large part to low rates and government incentives to buy. The strongest demand is for foreclosed and lower-priced homes.”

CCUL analyst Daniel Penrod: “The good news is the California housing market should begin to show signs of recovery by 2010. However, consumer sentiment and especially unemployment fears will continue to keep potential buyers on the sidelines, and recovery will not officially be felt until buyers looking to upgrade their homes re-enter the housing market.”  (OC Register by John Lasner)