Pessimists would be hard pressed to deny that the U.S. has shown encouraging signs of recovery in the housing sector. Property values have continued to increase, seemingly exponentially in many regions, and underwater home rates have dropped for five consecutive quarters. Analysts have every reason to believe that our current trajectory is sustainable, especially in states leading the recovery. California has several cities that have contributed to our current economic standing.
According to Realtor.com’s Turnaround Towns Report, 10 cities in particular are responsible for leading the nation, six of which reside within the boarders of California. Having demonstrated a propensity for increased property value, these cities have witnessed significant improvements over the past few years. However, for as much as California has helped the housing sector on a national level, real estate has played an equally important role in the states economy as a whole.
Statistics released by the National Association of Realtors (NAR) have identified significant contributions made by the housing sector to California’s economy. According to the NAR’s latest Economic Impact of Real Estate Activity in California Report, the total amount of income derived from the sale of a home in California averages $94,497. Of course, this takes several factors into consideration. The NAR has calculated the following into the equation: related industries, remodeling costs, new home construction and the economic multiplier impact. On a state level, real estate accounts for nearly $353,036 million of California’s $1.9 trillion gross product. For a more detailed view consult the following: