On the one hand.
Many analysts say the market here, and nationally, will stabilize this year. The economy remains generally healthy, they say, and builders have slowed down to avoid a pileup of unsold homes.
“There is reason to believe that [price] appreciation will be coming back soon,” says Luke Tilley, a Philadelphia economist at Global Insight, who follows the California market.
On the other hand.
“We’re expecting … a sharper and deeper contraction,” says Celia Chen, a housing economist at Moody’s Economy.com in West Chester, Pa. She says the state’s price run-up went beyond what could be justified by income or population growth.
The firm has predicted that several California cities will see prices drop further – some by 10 percent or more – and won’t hit bottom until sometime next year.
Well, that’s not very helpful.
If only we could find a one-armed economist.
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