UCLA forecasts California housing recovery next year

by Ricardo Lopez, LA Times
Wednesday, July 18th, 2012

Despite quickening home sales and rising prices in some parts of California, the state's housing market won't begin a full-fledged recovery until next year, economists at UCLA predict.

A dearth of residential construction remains a huge drag on the state's economy, according to the quarterly UCLA Anderson Forecast, while sales of distressed properties still dominate the market.

"The data is just not telling me that the market has turned or is on the verge of turning," said senior economist Jerry Nickelsburg. His report noted that "California real estate markets are either still in the trough or still declining towards it."