Economic update for the month ending October 31, 2018

U.S. Employers added 250,000 new jobs in October:

Wages grow at fastest pace in almost 10 years – Unemployment remains at lowest rate since 1969 – The Department of Labor Statistics reported Friday that 250,000 new jobs were added in October. That eclipsed the 190,000 new jobs analysts had expected. Job growth has now hit a record of 97 straight months. The unemployment rate was unchanged at 3.7%, the lowest national unemployment rate in 49 years. Average hourly wages were up 3.1% in October from last October. That was the largest year over gain in almost 10 years. 


California employers added 13,200 new jobs in September :

The California Employment Development Department reported that 13,200 new jobs were added in September. California has now added an average of 29,400 new jobs a month for 103 consecutive months. The state’s unemployment rate dropped to 4.1%, the lowest rate on record. 


U.S. stocks saw their largest monthly loss in 10 years in October:

 Although most companies reported quarterly profits that beat or were in line with expectations, the few like Amazon, Square, Hasbro, Domingo’s  and others  that reported disappointing results scared investors. The Dow Jones Industrial Average closed the month at 25,115.76, down from 26,458.31. last month. The S&P 500 closed the month at 2,711.74, down from 2,913.98 on September 30The NASDAQ closed the month at 7,305.90, down from 8,046.35 last month.   


Treasury Bond Yields rise:

The 10-year treasury bond closed the month yielding 3.05%, up from 2.86% on August 31, 2018. The 30-year treasury bond yield ended the month at 3.19%, up from 3.02% at the end of August. 

Mortgage rates higher in October:

 The November 1, 2018 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.83%, up from 4.72% on September 27, 2018The 15-year fixed was 4.23%, up  from 4.16% on September 27.  The 5-year ARM was 4.04%, up from 3.97% at the end of September. 


GDP up 3.5% in third quarter:

The U.S. Bureau of Economic Analysis announced that the first reading of the nation’s gross domestic product (GDP) rose by 3.5% in the third quarter of 2018.   That beat expectations of a 3.4% rise, but was well below the 4.2% increase registered in the second quarter of 2018. The report also said that The PCE price index, a key indicator of inflation, rose at a 1.6% annual rate in the quarter. That was well below the 2.2% annual increase analysts forecasted. Consumer spending, which accounts for about two thirds of the U.S. economy grew by 4% in the third quarter. That marked the largest increase since the fourth quarter of 2014. 


September Nationwide Existing Home Sales:

 Data released this week from The National Association of Realtors showed that total existing home sales fell again in September. The number of existing homes sold in September fell 3.4% from August, and are down  4.1%  from one year ago. The median price paid for a home in The U.S. was up 4.2% from last September. That marked the 79th straight month of year over increases. The unsold inventory index is at a 4.4 month supply, up slightly form a 4.2 month supply one year ago. 


September California Existing Home Sales:

The California Association of Realtors reported that existing single family home sales totaled 382,550 in September on a seasonally adjusted annualized rate. That was down 4.3% from August and down a staggering 12.4% from last September, when sales totaled 436,920 on a seasonally adjusted annualized rate. The median price paid for a home in California was $587,850, up 4.2% from September 2017.On a more regional level the median price increased 4.7% in Los Angeles County10.6% in Ventura County, and 3.3% in Orange County from one year ago. Inventory levels continued to rise after hitting historic lows in 2017. The unsold inventory index in California stood at a 4.2 month supply in September, up from a 3.3 month supply in September 2017. Inventory levels have now increased for 6 straight months and are up 20.4% from one year ago. Listings are at the highest level in 31 monthsLos Angeles County has a 4.4 month supply, up from a 3.1 month supply last September. Orange County has a 4.3 month supply,  up  from 3.1 months last September. Ventura County had a 6.3 month supply of homes, up from a 4.7 month supply one year ago. 

Best,
Syd Leibovitch 
Rodeo Realty Inc.
9171 Wilshire Blvd. Suite 321
Beverly Hills, California 90210
CA DRE # 00858724

Economic update for the week ending October 27, 2018

Stocks suffer a turbulent week:

A positive GDP report showing that the economy grew at 3.5% in the third quarter, inflation was tame, and consumer spending was up, could not keep the markets from continuing to slide. This week. third quarter profits were reported that were below expectations. Those were mostly in the technology sector. Even Amazon did not hit their numbers. On the other hand, some companies like Ford and Tesla exceeded expectations. All in all, fears in the technology sector hit the NASDAQ hard. It lost 3.8% for the week and is now up just  3.8% for the year after being up 20% for the year just one month ago. The Dow and S&P also got hit hard down 3% and 3.9% respectively for the week. The Dow Jones Industrial Average closed the week at 24,688.31, down from 25,444.34 last week. It is down 0.1% year-to-date.  The S&P 500 closed the week at 2,658.69, down from 2,767.78 last week.  It’s down 0.6% year-to-date. The NASDAQ closed the week at 7,167.21, down from 7,449.03 last week.  It’s up 3.8% year-to-date.

Treasury Bond Yields lower this week:

The 10-year Treasury bond closed the week yielding 3.08%, down from 3.20% last week. The 30-year Treasury bond yield ended the week at 3.32%, down from 3.38% last week. We watch treasury bond yields because mortgage rates follow bond yields.

Mortgage rates almost unchanged this week:

The October 25, 2018 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.86%, almost unchanged from 4.85% last week. The 15-year fixed was 4.29%, slightly up from 4.26% last week. The 5-year ARM was 4.14%, up from 4.10% last week.

GDP up 3.5% in third quarter:

The U.S. Bureau of Economic Analysis announced that the first reading of the nation’s gross domestic product (GDP) rose by 3.5% in the third quarter of 2018.  That beat expectations of a 3.4% rise, but was well below the 4.2% increase registered in the second quarter of 2018. The report also said that The PCE price index, a key indicator of inflation, rose at a 1.6% annual rate in the quarter. That was well below the 2.2% annual increase analysts forecasted. Consumer spending, which accounts for about two thirds of the U.S. economy, grew by 4% in the third quarter. That marked the largest increase since the fourth quarter of 2014.

September Nationwide Existing Home Sales:

Data released this week from The National Association of Realtors showed that total existing home sales fell again in September. The number of existing homes sold in September fell 3.4% from August, and are down  4.1%  from one year ago. The median price paid for a home in the U.S. was up 4.2% from last September. That marked the 79th straight month of year over increases. The unsold inventory index is at a 4.4 month supply, up slightly from a 4.2 month supply one year ago. 

September California Existing Home Sales:

The California Association of Realtors reported that existing single family home sales totaled 382,550 in September on a seasonally adjusted annualized rate. That was down 4.3% from August and down a staggering 12.4% from last September, when sales totaled 436,920 on a seasonally adjusted annualized rate. The median price paid for a home in California was $587,850, up 4.2% from September 2017. On a more regional level, the median price increased 4.7% in Los Angeles County, 10.6% in Ventura County, and 3.3% in Orange County from one year ago. Inventory levels continued to rise after hitting historic lows in 2017. The unsold inventory index in California stood at a 4.2 month supply in September, up from a 3.3 month supply in September 2017. Inventory levels have now increased for 6 straight months and are up 20.4% from one year ago. Listings are at the highest level in 31 months. Los Angeles County has a 4.4 month supply, up from a 3.1 month supply last September. Orange County has a 4.3 month supply,  up from 3.1 months last September. Ventura County had a 6.3 month supply of homes, up from a 4.7 month supply one year ago. 

Have a great weekend!
Syd

The Best Books of 2018 So Far

HARPERCOLLINS
BLOOMSBURY PUBLISHING
TOR.COM
FARRAR, STRAUS AND GIROUX
HARPER COLLINS
HARPERCOLLINS
HOGARTH
COUNTERPOINT
LITTLE, BROWN AND COMPANY
LITTLE, BROWN AND COMPANY
MACMILLAN
PEGUIN
VINTAGE
ALGONQUIN BOOKS OF CHAPEL HILL
RANDOM HOUSE
LITTLE, BROWN AND COMPANY

Rodeo Realty's Josh Flagg and Ben Bacal among Variety's 'Showbiz Real Estate Elite 2018'

Variety’s annual ‘Showbiz Real Estate Elite 2018’ has been announced! Every year the magazine names some of the entertainment industry’s go-to agents, not just in Hollywood, but also on the East Coast, in Miami and event in Europe, Latin America and Asia.

This year, two Rodeo Realty agents made the elite list: Josh Flagg and Ben Bacal.

“Their clients come from all over the glove,” said Variety. “Not surprisingly, however, these high-flying negotiators mostly work the properties in the Beverly Hills and Bel-Air hot zone.”

As a star of Bravo’s popular show “Million Dollar Listing Los Angeles, ” there’s no doubt that Josh Flagg is one of the entertainment industry’s go-to agents.

His recent Beverly Hills sales range in the $10 million-$16 million range. Some of his current listings mentioned by Variety include 815 N. Whittier Dr. for $11.49 million and 811 Hillcrest for $8.49 million. He also recently closed escrow on $20 million property.

“The market is “very, very strong,” said Josh to Variety. “High-end properties will continue to stay steady. I don’t see a massive increase in prices, but I also don’t see a tremendous potential of property value going down.”

Significant sales mentioned for Ben Bacal: 1006 Lexington Dr. for $26.75 million, 1218 Benedict Canyon for $11.995 million and 1895 Rising Glen Road for $15.95 million. His current listings included 830 Birchwood Dr. at $15.9 million and 6250 Hollywood Blvd. at $9.75 million.

“The high-end market is on fire in L.A,” said Ben to Variety. “Almost everything that has class and style is trading. L.A. isn’t built vertically, there is limited land and some of the most incredible luxury estates are being born here every month. I think L.A. is extremely undervalued.”

Congratulations to both agents for making Variety’s Showbiz Real Estate Elite 2018!

To read more on this, click HERE.

Rodeo Realty's President Syd Leibovitch Recognized As One Of The Most Powerful and Influential Leaders in Residential Real Estate

The 2018 Swanepoel Power 200 list is out and Rodeo Realty’s President, Syd Leibovitch, is once again recognized as one of the most powerful leaders in the residential real estate brokerage industry!

Out of thousands who were considered, Syd Leibovitch was one of 200 who made it onto the SP200 list.

“This year we invested over 400 hours to ensure that the SP200 is the most meaningful and accurate reflection of power and influence in the residential real estate brokerage industry,” said Stefan Swanepoel, Editor-in-Chief of the Swanepoel Power 200.

The 2018 SP200 ranks Syd Leibovitch at #107 among the 200 recognized.

“Founder of Rodeo Realty, Leibovitch heads one of the leading residential real estate firms in Los Angeles and Ventura counties with nearly 1,500 agents in 12 offices who produce almost $5 billion in annual sales,” said the SP200.

To view the 2018 Swanepoel Power 200 list, click HERE.

3 Dessert Trends That Will Take Over Los Angeles in 2018

Predictions and New Years go together like cupcakes and sprinkles, especially when it comes to the topic of desserts.

2017 was a year of colorful decadence and over-the-top sweets like cake-topped milkshakes and funfetti cream-filled croissants. But in 2018 we’ll say goodbye to cereal atop everything, with a shift towards wellness, plant-based goodies, and whole grains (yes, even in our desserts!).

Below are the biggest trends we think you’ll want to watch out for in the year ahead.

https://www.instagram.com/p/BSw5f60BI-e/?utm_source=ig_embed&utm_campaign=embed_ufi

1. Desserts for Every Diet

If 2017 was a year of excess, 2018 will be equally focused on mindful eating and wellness. We’ll see this in the confections we consume as well. As demand for plant-based food options has reached record highs, 2018 will bring a bigger emphasis on plant-based, dairy-free, and vegan sweets. You can already see this with the popularity of the vegan/dairy-free selections at LA’s beloved soft-serve institution Magpies Softserve, but you’ll soon start to see such options on menus citywide. We’re even predicting more stand-alone spots devoted to alternative-diet sweets. One place to look out for is the upcoming bakery from whole-foods baking company Sweet Laurel, focusing on paleo, dairy-free, and refined sugar-free baked goods.

2. Heirloom Grains

Even with the gluten-free craze in full effect, it’s clear people are still enjoying bread and baked goods, and heirloom grains are making a big comeback this year. In 2017 we embraced heritage grains in the form of artisan breads from local millers like Grist & Toll and farmers like Alex Weiser of Weiser Family Farms, but in 2018 we’ll see these grains go beyond bread to make their presence felt in pastry cases across L.A. Roxana Jullapat at Friends & Family offers great examples of this, with heirloom grain in housemade viennoiseries and baked goods like sonora wheat croissants, einkorn shortbreads, and spelt blueberry muffins.

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honey mousse-ing into the weekend w phyllo and figs

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3. Middle Eastern Desserts

2017 was a big year for Filipino food and for ube in particular — just take a look at the trending treats from Silver Lake bakery FrankieLucy Bakeshop for reference. While we think Filipino food will continue to make a splash in 2018, we’re predicting that Middle Eastern flavors and spices will be a dominant force in desserts. Middle Eastern cuisine had a strong presence in Los Angeles in mid-to-late 2017 with Kismet and Mh Zh hitting the scene. We expect continued growth and excitement about Middle Eastern food to make a big impact on desserts — think flavors like cardamom, pomegranate and pistachio. One great place you can expect to see this is Bavel, the new restaurant from chef Ori Menashe and pastry chef Genevieve Gergis (of Bestia fame) opening in early 2018.

Article courtesy of We Like LA. 

Joseph ‘Bud’ Mauro & Neal Adler elected for the SRAR 2018 Board of Directors

Congratulations to Joseph ‘Bud’ Mauro and  Neal Adler!  The two Rodeo Realty agents have been elected for the Southland Regional Association of REALTORS® 2018 Board of Directors.

The election started September 25 and ended October 10. Members were able to go online and vote for the candidate of their choice. 

During the voting process, Syd Leibovitch, president of Rodeo Realty, recommended both candidates.

“It would be good for us to have them representing us,” said Syd Leibovitch.

Congrats again to Bud and Neal! It’s great to have two of our own on the leadership team of Southland Regional Association of REALTORS®!

The following is a brief explanation of their qualifications:

Joseph Bud Mauro has served Rodeo Realty at just about every level. He has been president of the association, he has been on the board of directors, and has also served at just about every other level at the Association. He also served at The California Association of Realtors.

Neal has served on various committees, including MLS, Government Affairs, Grievance, and Professional Standards.  He was a CAR director and a CAR Professional Standards trainer.