The California Credit Union League released their forecast for the housing market.  They see some stabilization coming in late 2009 with an increase of home sales especially in the lower priced segment of the market.

The CCUL expects the median home price to increase by 8% in early 2010 throughout Los Angeles and Orange County.  Home sale increases will likely begin with the coastal regions of the state.  They expect the state of California as a whole to have a 5% increase in their median price by 2010. 

Due to the low rates and government incentives to buy the CCUL has already begun to see an increase in mortgage applications for first-time homebuyers.  The strongest demand right now is for foreclosed and lower-priced homes.