CVCY » Topics » ECONOMIC CONDITIONS

These excerpts taken from the CVCY 10-K filed Mar 19, 2009.

ECONOMIC CONDITIONS

 

The economy in California’s Central Valley has been negatively impacted by the economic recession that began in 2007 and the related real estate market and the slowdown in residential construction. The recession has impacted most industries in our market area.   During 2008, housing values throughout the nation and especially in the Central Valley have decreased dramatically, which in turn has negatively affected the personal net worth of much of the population.  However, housing in the Central Valley continues to be relatively more affordable than the major metropolitan areas in California.

 

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Agriculture and agricultural related businesses remain a critical part of the Central Valley’s economy.  The Valley’s agricultural production is widely diversified, producing cotton, nuts, vegetables, fruit, cattle, and dairy products.  The continued future success of agriculture related businesses is highly dependant on the availability of water and is subject to fluctuation in worldwide commodity prices and demand.

 

ECONOMIC CONDITIONS



 



The economy in California’s Central Valley has been negatively impacted
by the economic recession that began in 2007 and the related real estate market
and the slowdown in residential construction. The recession has impacted most
industries in our market area.   During
2008, housing values throughout the nation and especially in the Central Valley
have decreased dramatically, which in turn has negatively affected the personal
net worth of much of the population. 
However, housing in the Central Valley continues to be relatively more
affordable than the major metropolitan areas in California.



 



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Table of
Contents



 



Agriculture and agricultural related businesses remain a critical part
of the Central Valley’s economy.  The
Valley’s agricultural production is widely diversified, producing cotton, nuts,
vegetables, fruit, cattle, and dairy products. 
The continued future success of agriculture related businesses is highly
dependant on the availability of water and is subject to fluctuation in
worldwide commodity prices and demand.



 



These excerpts taken from the CVCY 10-K filed Mar 5, 2008.

ECONOMIC CONDITIONS

 

Fresno County’s economy has been relatively stable for the past three to four years, but has been affected by the residential construction slow down during 2007.  Most industries in the County are either stable or contracting very modestly.  Agriculture and agricultural related businesses remain a critical part of the County’s economy.  The County’s agricultural production is widely diversified, producing cotton, nuts, vegetables, fruit, cattle, and dairy products.

 

Fresno County also offers lower living costs compared with metropolitan areas to the North and South of the County.  While affordability has declined in recent years, the area is still considered more affordable than other places in California.

 

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ECONOMIC CONDITIONS



 



Fresno County’s economy has been relatively stable for the past three
to four years, but has been affected by the residential construction slow down
during 2007.  Most industries in the
County are either stable or contracting very modestly.  Agriculture and agricultural related
businesses remain a critical part of the County’s economy.  The County’s agricultural production is
widely diversified, producing cotton, nuts, vegetables, fruit, cattle, and
dairy products.



 



Fresno County also offers lower living costs compared with metropolitan
areas to the North and South of the County. 
While affordability has declined in recent years, the area is still
considered more affordable than other places in California.



 



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This excerpt taken from the CVCY 10-K filed Mar 29, 2007.

ECONOMIC CONDITIONS

Fresno County’s economy has been relatively stable for the past three to four years, but during 2006, the local economy has shown signs of slowing.  Most industries in the County are either stable or contracting very modestly.  Fresno County’s unemployment rate has historically been one of the highest rates in California and the nation; however in the fourth quarter of 2006, the County reported the lowest single digit rate in 27 years.  Agriculture and agricultural related businesses remain a critical part of the County’s economy.  The County’s agricultural production is widely diversified, producing cotton, nuts, vegetables, fruit, cattle, and dairy products.  Due to low land costs, relative to the rest of the state, Fresno’s economy has been significantly affected by the real estate construction segment in the past five years.  However, during 2006, growth in the residential housing market stagnated as housing starts and appreciation in median home prices decreased compared to 2005.

Fresno County also offers lower living costs compared with metropolitan areas to the North and South of the County.  Fresno County’s home appreciation has averaged 20% annually over the four year period prior to 2006. In 2006 home appreciation was approximately 3%. While affordability has declined as a result, the area is still considered more affordable than other places in California.

This excerpt taken from the CVCY 10-K filed Mar 24, 2006.

ECONOMIC CONDITIONS

 

Fresno County’s economy has been relatively stable for the past three to four years; however, some minor evidence of a slow down has been evident in the fourth quarter of 2005. Most industries in the County are

 

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either stable or contracting very modestly. Fresno County’s double-digit unemployment is one of the highest rates in California and the nation; however in the fourth quarter of 2005, the County reported single digit unemployment for  the first time in many years. This high level is a hindrance to strong growth in the County. Agriculture and agricultural related businesses remain a critical part of the County’s economy. The County’s agricultural production is widely diversified producing cotton, nuts, vegetables, fruit, cattle, and dairy products. Due to low land costs, relative to the rest of the state, Fresno’s economy has been significantly affected by the real estate construction segment in the past 5 years. Several new and planned developments in the foothill area of the County may assist the industry in maintaining its growth. However, there are indications of a slowing in the housing market; residential permits have been declining in 2005.

 

Fresno County also offers lower living costs compared with metropolitan areas to the North and South of the County. Fresno County’s home appreciation has averaged 20% annually over the past four years. While affordability has declined as a result, the area is still considered more affordable than other places in California. Residential construction, while slowing somewhat, still appears to be strong. The local economy benefited from growth in housing and construction fueled by record low long-term interest rates, demand for new housing and refinance activity

 

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