The 2013 Home Buyers Survey, conducted by the California Association of Realtors, indicates that buyers are aware that the real estate market is recovering, and are optimistic about real estate prices, especially in the coming years. 60% of those surveyed felt that home prices will rise in the next 5 years, while 36% of those surveyed felt that home prices will rise in the next year.
You can see that this confidence has increased dramatically over previous years. An increase in buyer optimism means an increase in buyers wanting to enter the real estate market, but the prices have to continue to rise (even slightly) in order for this optimism to continue. Fingers crossed for 2014.