Industry News

California real estate trend could reverse

Slowdown in housing will 'dent' state economy, economist says

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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, ...