California home values drop $106 billion to $10.8 trillion

"My trusty spreadsheet peeked at a Zillow report tracking total home values for the year ending in June and the pandemic era - February 2020 through June 2025. Zillow totaled all of its price estimates for every state and the nation. Mortgage liabilities were not deducted from those valuations. By this math, California's total housing value dropped by $106 billion in the past year. Conversely, values across the U.S. rose by $862 billion."

"California's housing market has seen its sales pace drop to a low last seen during the 2008 crash. House hunters shy from near record-high prices. One affordability index shows that only 15% of California households could comfortably buy a typical house. Nationally, affordability is 34%. Just seven states had their total values dip in the year. Only California's economic arch-rival, Florida, had a bigger loss, at $109 billion. After California came another business nemesis, Texas, where values dipped $32 billion."

Zillow's statewide totals show California's aggregate housing value fell $106 billion over the past year while U.S. total values rose $862 billion. California's sales pace has dropped to a level last seen during the 2008 crash, and affordability is weak: one index indicates only 15% of California households can comfortably buy a typical house versus 34% nationwide. Seven states recorded annual value declines, led by Florida (-$109 billion) and Texas (-$32 billion). New York, New Jersey and Illinois posted the largest gains. California housing remains the nation's largest market at $10.8 trillion, about 20% of the U.S. total.

Read at The Mercury News