Beacon Economics — which features economist Chris Thornburg, an early seer of the housing debacle — suggests that the recent lull in California home sales IS temporary, that the market won’t revert back to its in-collapse mode and that modest appreciation for values is in the cards.

To quote Beacon, “Fears over a major double dip in home prices are likely misplaced. While demand for homes has fallen (as measured by home sales) since the homebuyer tax credit expired, and there has been some weakness in prices as a result, the fundamentals all indicate that California’s real estate market is emerging from this recession in a healthier position.” 

Beacon notes that real estate in California will remain weak over the next year and then change will occur. 

Beacon projects flat home pricing statewide through 2011 then approximately gains in the median selling price of roughly 3% in 2012; up 5% in 2013; up 7% in 2014 and increases of nearly 8% in 2015.

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