Industry News

California real estate trend could reverse

Slowdown in housing will 'dent' state economy, economist says
Published on Jan 6, 2006

The slowing housing market in California won't stand in the way of the state's economic growth, according to an economist for Comerica bank, a subsidiary of Comerica Inc., a Detroit-based financial services company. Dana Johnson, chief economist for Comerica Bank, said, "The coming home-price adjustments will be relatively orderly – denting, but not crushing the state economy," according to a Comerica announcement. Johnson spoke Thursday as a featured panelist at the 2006 Economic Trends breakfast at the San Diego Marriott Mission Valley, presented by Comerica Bank and the San Diego Business Journal. A former economist with the Federal Reserve Board, Johnson also said,  "I expect California to grow at a healthy pace in 2006, closely shadowing the national growth rate of about 3 1/4 percent." As California's economy – which generates more than 13 percent of the national output – has grown, it more closely has come to resemble the national economy's growth rate, ...

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