Housing Decline: The Beginning of the End?

California may be the first state to hit the bottom of the housing market, according to this article from Bloomberg.

"California is having a wrenching decline in wealth, but this is a cathartic event that will lay the foundation for a recovery,'' said Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pennsylvania, in an interview. ``This signals the beginning of the end.''

Experts claim that the amount of foreclosures on the market--at about 40% to 60% of the price from the height of the market--are boosting sales. In addition, Bloomberg reports that home sales in California rose for three consecutive months starting in April. That’s the first time that’s happened in 30 months.

While experts say it will take some time to get thru the huge inventory of homes on the market--and of course option ARMS are set to start adjusting across the state next Spring--there might be some truth to the report: the end may be near.