Housing prices in California for January unexpectedly rose slightly. Although this seems like a great sign that the housing market could be on its way to recovery, some analysts say that another fall could be possible.
expectations about housing's direction remain mixed as a series of government initiatives intended to bolster sales and stabilize values begin to expire. An article from the Los Angeles Times said:
With all of these mixed views and opinions on the recovery of the housing market, it is hard to say what is in store for the future. Whether this is a small sign of an improving housing market, or false hope is unknown. The only way to find out is to see how this situation unfolds.
Concern over a potential wave of foreclosures also remains high despite new efforts by the Obama administration to keep struggling borrowers in their homes.
"Forces that will bring home prices back down are mounting," said Patrick Newport, an economist for IHS Global Insight. "Our view is that despite this report, prices have further to fall -- about another 5%."...
...Though many economists expect the extended tax credit to give sales a further boost, they also expect another fall once the government incentive ends.
"It is way too early for this market to have rebounded the way it has," said Christopher Thornberg, principal of Beacon Economics.
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