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California has an enormous and highly diverse economy. With a gross state product close to a trillion dollars, it is one of the world’s largest economies. It accounts for about 13% of the nation’s total economic output. It ranked either second or first as a state headquarter of Fortune 500 companies in the past decade. It even beat New York in 2003 in the top list with 53 Fortune 500 companies. These companies have generated a total revenue of more than $763 billion. It is truly a centre of modernization and manufacturing expertise.

3 industries contribute in large part to California’s economy - advanced technology, manufacturing and international trade. These companies tend to pay better compensation than older industries, resulting to a higher average earning in the state.
The largest sector in the economy is the financial services sector. The second largest would be the manufacturing sector. Although the agriculture sector account for a small portion of the state’s total output, it leads the nation with its agricultural products sold for the past 10 years. California produces almost 90% of the nation’s grapes and almonds and 75% of its strawberries and lettuce. California is ahead when it comes to service exports combined with good exports. It is leading in the industry of exporting computers and electronic products. It continues to lead the nation and the world in major industries such as agriculture, information technology, biotechnology, entertainment and aerospace thriving in Northern California, Central Valley and Southern California. It has finally begun to regain its status as the nations most powerful economic machine.
California is not only a land of opportunities; it is also a place where you will find summer fun and winter adventure and a lot of both for the whole family. You can go picnicking in the wine country, golfing near Napa, snowboarding in Mammoth, rollerblading in Venice beach, Mountain biking in the Sierra, Fine dining at 21 Oceanfront in Newport Beach and a lot more. It is unique due to its size and demographic mix. With the state’s varied topography and abundance of arts and entertainment, beauty and recreation, history and culture, California is the perfect place to live!

After a year of dismal news in the residential sector we are seeing that mortgage rates in the commercial sector are still holding steady, according to a report released today by the California Mortgage bankers Association.

Delinquencies have risen slightly over the year, however they are no where near as drastic as seen in the residential market. This is mainly because the amount of a commercial loan is generally two times the amount of a residential loan and the down payment required is quite a bit more.

Vacancies have also held steady over the past year. As long as the units are being leased, mortgage holders should be able to pay their monthly payment.

While this news is good for California’s commercial market, it is expected that eventually the downturn in the residential market will seep into the commercial market, however the impact will likely be no where near the monumental downturn that has recently taken place in the residential sector.

California residents will have reason to rejoice this tax season!

The economic stimulus package announced this week includes rebates between $600 to $1,200 for most Californian families plus $300 per child. The big news that is relevant to the California real estate market is the fact that the plan also includes a drastic reduction in rates for loans between $417,000 and $729,00.

Jumbo loans (Loans over $417,000 in California) are generally priced at a much higher interest rate than loans for homes at a lower price point. The interest rate on a jumbo loan can be 1.5%+ more than a loan for a lesser amount. This mean that many homes in California markets are just plain unaffordable for consumers looking to buy - even in the current market.

The stimulus plan effectively raises the cap for conforming loans (loans that up until now were capped at $417,000) and the corresponding interest rate associated with them. This will give California markets a much needed boost in affordability as more consumers become qualified to purchase.

Hopefully this will be enough to begin to remove consumers from the sidelines and into the buyers category.