An improving housing market is bringing buyers back.
The federal Department of Housing and Urban Development and the Treasury Department just released their October "Housing Scorecard," a rundown of all things housing and housing-related in the U.S. economy.
The October Scorecard contains a huge amount of housing data, but the really good news has to do with prices — and although there's a limited amount information related to Southern California and Los Angeles, the news is fairly positive. After crashing during the financial crisis and stumbling further in 2011, they’ve begun to steadily move up this year.
Even better, expectations for rising home prices are more optimistic.
They never dropped as far as feared back in 2009. Rather, prices have bumped along, rising and falling, for three years. Now they appear to have formed a bottom and are projected to resume a trend of price appreciation that was completely distorted by the bubble that inflated between 2003 and 2007. Check out the two charts above in the short slide show. They tell a reasonably happy story.
In California, this is good news. Prices here are down almost 40 percent from their 2006 peak. It could take years for homeowners to recover those losses. But the numbers are finally turning in their favor.