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, with one exception: real estate, he noted.

Over the past five years, housing prices in California have risen at a 16 percent compound annual rate, but  “the recent trend can’t last,” he said. “House-price gains in California are going to slow dramatically or reverse.”

He said affordable credit and a scarcity of good building sites will temper the slowdown.

Johnson also will be a featured speaker at two more Comerica-sponsored economic forecast events this month: the “Los Angeles Business Journal 2006 Economic Forecast,” on Jan. 18 in Los Angeles; and the “The Economics of Business in 2006,” co-sponsored by Comerica Bank and the Stanford Institute for Economic Policy Research, on Jan. 19 in San Mateo.

The Western Market of Comerica Bank includes 60 branch offices in California markets, including San Francisco, San Jose, Los Angeles, Orange County, San Diego, Fresno, Sacramento and Santa Cruz /Monterey, as well as in Phoenix/Scottsdale, Ariz.

***

Send tips or a Letter to the Editor to glenn@inman.com or call (510) 658-9252, ext. 137.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription