» VISIT US ONLINE @ DSNEWS.COM
93
CALIFORNIA
California's Role in the National Housing Recovery
e housing market has come a long way from its lowest point
recorded in 2012, regaining $10.9 trillion in value over the past six
years, according to a study by Zillow.
e market, which was worth a cumulative $33.3 trillion in 2018 is
now worth $4 trillion more than what it was at the peak of the hous-
ing bubble, the study revealed. On a year-over-year basis, the market
gained $1.9 trillion in value over 2017.
Of all the markets across the country, one state accounted for
nearly one-third of the value gained during the nationwide housing
recovery—California. e report indicated that the housing market
in the Golden State grew by $3.7 trillion since early 2012, making
it the only state that gained more than $1 trillion in value since the
market fell.
Despite coming in a close second in terms of dollar contribution
to the national housing recovery (a contribution of $937.9 billion, or
8.6 percent of the overall recovery), "the total value of all the homes
in Florida is still $263.9 billion below its peak level," the study indi-
cated.
"Seen from the rearview mirror, 2018 was a year of unusually
strong, stable home value growth across the country," said Aaron
Terrazas, Senior Economist Zillow. "But cracks in the foundation
are clearly starting to emerge. During the second half of the year,
appreciation slowed sharply in the priciest corners of the country
while it picked up in affordable hotspots. Periods of stability often
precede periods of instability, and the outlook for 2019 is certainly
both cloudier and blurrier than the outlook a year ago."
Breaking down the growth in home values even further, the study
stated that the New York/New Jersey area was the single most valu-
able metro worth $3 trillion, or 9.1 percent of the national housing
market. Four California markets–Los Angeles, San Francisco, San
Jose, and San Diego–were among the 10 most valuable metros in the
country.
