I found this in the California Association of Realtors Market Matters Newsletter a few days ago.  It is great to see encouraging news, howbeit in small increments:

California home sales rose, median price fell in January California home sales rose in January, marking three consecutive monthly increases and posting their highest level since May 2010, while the statewide median price declined to its lowest level since June 2009, according to data C.A.R. 

“With lower home prices and rates edging up from their historic lows of late last year, prospective home buyers should consider the opportunities in today’s market,” said C.A.R. President Beth L. Peerce.