Home Prices See Some Stabilization in California

Consumers who cannot stop foreclosure have flooded the market with their old homes, which leads to housing values falling.

Consumers who cannot stop foreclosure have flooded the market with their old homes, which leads to housing values falling.

However, a recent report from Zillow.com noted that some markets in California saw home prices stabilize during the first quarter. According to the online mortgage marketplace, values in Los Angeles, San Diego, San Francisco, Santa Barbara and Ventura have increased over the last 10 months.

"It's a very positive sign that several large markets have hit what appears to be a tentative bottom in home values," Zillow chief economist Stan Humphries said.

These areas saw home prices drop to low points in April and May of last year, the company said. Nationally, home values fell 1 percent from the fourth quarter of last year to the first quarter. Humphries said that values should reach bottom by this year's third quarter, although consumers not being able to stop foreclosure and negative equity could stall growth for as much as five years.

According to RealtyTrac, the first quarter saw foreclosures in California drop 6 percent when compared to the same time in 2009. However, the state still saw one in every 62 homes face a filing.