"Bay Area home sales in June jumped to their highest level in almost three years because of the perception among homebuyers that prices have bottomed out,..."

Home buyers might have that perception, and it might even prove true. But I'm fairly skeptical that it is. The increase in median home price mentioned in the article is really no evidence of a bottom as it is likely to be driven by a change in the mix of houses being sold. In some of the outer Bay Area counties, forclosures have been 30-40% of sales. As that goes down, even slightly, the median price will go up just from the mix changing. More on this here.

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FWIW, I'm a homeowner, so I have no vested interest in saying prices will go down.

Wrong link. Look at this one instead.

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