The current housing projections show California’s home prices rising 5.7% in late 2010 – this comes after housing prices in California have fallen 48.5% from 2006-2008 and nearly 17% this year alone. 

Due to the large number of foreclosed properties for sale, once the economy gains stability and potential homebuyers regain confidence in the system they will be able to get into the market because prices are more in line with incomes.  A larger pool of buyers should improve demand and create more confidence that the housing market is finally stabilizing.

Other states that are expected to improve include Washington (where housing prices are expected to rise 4.9%), Alaska (housing prices are predicted to rise 2.5%), Wyoming (housing prices are expected to rise 1.7%) and Vermont (where housing prices should rise  1.6%).