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San Francisco-based Wells Fargo Bank just released its new California Economic Outlook, saying widespread fears of a derailed housing recovery aren’t likely to materialize in California.
“While fears of a national housing market double dip are on the rise due to the sharp decline in home sales following the expiration of the homebuyer tax credit, we see less of a chance for a douple dip in California, at least one that takes out the cyclical lows put in place in late 2007.”
Wells Fargo economists say the signs of healing in the California’s housing market have solidified in the past six months. They also see a “fragile and highly uneven” recovery in jobs, a slow rise in personal incomes and “tentative signs of recovery.”
The bad news hits home close to home, however: a state budget crisis that portends large “expenditure reductions” and “significant cash shortfall problems.”

Good news from the experts!

Source: Sacramento Bee