The well publicized San Diego 1% price decline has many people asking me what will happen to Los Angeles housing prices.  While I don't have a crystal ball, the current trend is small stable appreciation.  The floor on prices is currently held in place, in part, by employment trends. 

Staff writer Howard Find wrote in the July 17, 2006 Los Angeles Business Journal that Los Angeles County "should continue to see solid job growth"  Employment in LA county is up 2.5% from a year ago, (May 2005 vs. May 2006) according to the July 17, 2006 Los Angeles Business Journal.  Thus, baring a large dip in employment I don't presently see any significant fall in Los Angeles County home prices.