NEW YORK -- David Hensley, a regional economist for Salomon Brothers Inc., says home prices in California appear to have bottomed out. In a new report, he says prices might even rise slightly next year.

He says affordability of housing is at its best point in 15 years, and even further sharp increases in interest rates would leave affordability in Los Angeles higher than at any time since 1980 except for one brief period in late 1986 and early 1987.

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