House Prices Begin to Fall In California

A good indication that housing prices are beginning to stabilize is showing in California. Housing prices in that state are staring to fall, making analyst hope that the trend will carry through the entire country.

Southern California is now considered the country�s fifth most at risk area for falling house prices. The almost 60% chance of falling prices in California is the latest indicator of a downsizing real estate market, feeling the pinch after the boom in early 2005. Other area in California make up three of the other four positions for high-risk areas. California has consistently been the highest priced area when it comes to home sales; while other parts of the country are seeing a stabilized market, California is now starting to see a decrease in the prices that houses are selling for.

Home appreciation is also starting to take a toll, with 34 markets reporting that homes have stalled in their appreciation. Analyst often look to California to judge how the real estate market is changing; the new slide in prices has made some think that housing across the country could not only level off, but begin to fall.