The California's real estate market has had a surprisingly strong rebound which has lifted the home price index for the eighth month in a row. Home prices are now up almost 4 percent from their May 2009 bottom. For those planning on selling their home this spring this is welcomed news.
According to a report released today by the Standard & Poor's/Case-Shiller 20-city home price index home prices rose 0.3 percent from December to January.
Los Angeles had the largest monthly gain with home prices rising 1.8 percent from December and as a result area real estate agents feel that the worst of the decline may be over.
Los Angeles buyers are beginning to see that prices are slowly moving up creating the situation that buyers are now starting to lose bids on homes they are interested in and then they will need to bid on them again.
Paul Dales, U.S. economist with Capital Economics said, "It is only a matter of time before the index records a double-dip in prices." He thinks that there will be a 5 percent drop and that the market will be tested in the second half of 2010 when the government's tax credit expires which has helped boost home sales.