Home prices are expected to go up by nearly 2%, according to the California Association of Realtors' forecast for next year. And sales are predicted to increase by 1%. 

"All I hope for 2012 is that we can have a sustained period without some unexpected shocks."

Leslie Appleton-Young is the association's vice president and chief economist. She predicts the coming year will be characterized by more of the same: low mortgage rates and relatively low prices.

"This phenomena of bouncing along the bottom that we've seen for most of 2011 is mostly likely to continue into 2012. But we have bottomed and conditions vary dramatically from region to region."

She says a strong housing recovery will depend on consumer confidence and job creation.