A press release from the UCLA Anderson 2008 first quarterly report contains the following encouraging news about the California housing market in the latter part of 2008 and through 2009:
Our no-recession forecast remains nervously intact. We see a lot of problems in the first half of 2008, as housing remains a drag on GDP growth and weakness in personal consumption contributes as well,” he writes. “We expect one quarter of negative GDP growth. The Fed continues to dish out good news for Wall Street with ever lower interest rates. The labor market is sluggish and unemployment elevates to 5.5 percent by the end of 2008. But the housing drag on GDP dissipates in the second half of the year and a normal economy returns in 2009.
This brief quote gives a glimpse of light at the end of the current housing crises tunnel from the generally pessimistic outlook of the Anderson Reports.