The U.S. Economy Added 273,000 New Jobs in February 

The Department of Labor Statistics reported that U.S. employers added 273,000 new jobs in February. Monthly job gains averaged 230,000 over the past six months, the highest job gains in two years. The unemployment rate dropped to 3.5%, a 50-year low, from 3.6% in January. Average hourly wages grew 3% from one year ago. The report demonstrates just how strong the American economy was prior to the coronavirus outbreak.

Stock Markets End Week Slightly Higher than Last Week When Stocks Had Their Biggest Weekly Decline Since the 2008 Financial Crisis

It was a turbulent week with 1,000 point daily swings, but markets held on to be slightly higher for the week as the coronavirus reached pandemic levels, spreading to every continent on the globe. Analysts fear that the economic impact will be devastating to the travel industry, and severely impact the worldwide economy. In a surprise move the Federal Reserve made an emergency ½% rate cut in order to lend support to the economy. Nobody knows what the final economic impact of the coronavirus will be. The Dow Jones Industrial Average closed the week at 25,864.78, up 1.8% from 25,409.36 last week. It’s down 9.4% year to date. The S&P 500 closed the week at 2,972.37, up 0.6% from 2,954.22 last week. It’s down 8% year to date. The NASDAQ closed the week at 8,575.62, up 0.1% from 8,567.37 last week. It’s down 4.5% year to date.

Coronavirus Impact on the Real Estate Market 

The meltdown in stocks has pushed interest rates to 40-year lows. We did not see any decline in sales in the last two weeks. In fact, there are so many sales, inventory levels are shrinking because new listings are not keeping up with the number of sales. Inventory levels are now back to 2017 levels, which represented historic lows. This has caused multiple offers on homes that are priced realistically, pushing prices up.

U.S. Treasury Bond Yields 

As stock markets plummeted, investors moved money from stocks to the safety of bonds. The 10-year treasury bond closed the week at its lowest level in 100 years.  The 10-year treasury bond closed the week yielding 0.74% down from 1.13% last week. The 30-year treasury bond yield ended the week at 1.25%, down from 1.65%, last week. We watch treasury bond yields because mortgage rates often follow bond yields.

Mortgage Rates at 40-Year Lows 

The Freddie Mac Primary Mortgage Survey released on March 5, 2020 reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate average was 3.29%, down from 3.44% last week. The 15-year fixed was 2.79%, down from 2.95% last week. The 5-year ARM was 3.18%, down slightly from 3.20% last week. Usually, mortgage rates follow bond yields, but lenders have not lowered rates to the extent that bond yields have dropped.

With storybook streets and old-world Victorian cottages, Carmel-by-the-Sea hardly sounds like California. That is, until you come face-to-face with the jagged coastline, the impeccable sands of the beaches or its historic Spanish mission. Or until you realize this town of nearly 4,000 has no shortage of quirks befitting its history of attracting artsy California eccentrics: no street addresses or parking meters, to name two.

And did we mention Clint Eastwood used to be mayor? In fact, just last year Eastwood –  who fell in love with the area during filming of his 1971 directorial debut, Play Misty for Me, and went onto become the town’s mayor in the 1980s – listed the last lots in Tehama, a community he helped develop to safeguard the area’s environment. So while it is about five hours from Los Angeles, Carmel-by-the-Sea is worth every mile of the drive, however long you stay.

MORNING

Carmel Beach and Scenic Road

At the base of Ocean Avenue, this long, wide strip of white sand has long been known as one of California’s most gorgeous beaches. A haven for sun-seekers, surfers, dogs (yes, the beach is canine-friendly) and casual visitors, it offers breathtaking vistas of the ocean and as much, or as little, activity as you feel like attempting. If you feel like exploring on foot, the Scenic Bluff Path runs parallel to Scenic Road above Carmel Beach. If you’d rather view the ocean from behind the wheel, consider a drive down majestic Scenic Road.

Carmel Mission

Constructed in 1797, Mission San Carlos Borromeo del Río Carmelo is a restored Roman Catholic mission church. Of its five museums, the focal point is the Basilica Church, which is a registered National Historic Landmark and showcases the Mission’s collection of Spanish colonial art and artifacts. The Carmel Mission offers tours of the property, including the courtyards, Basilica, Indian cemetery and museums, with the intent of portraying not only what the Mission was like centuries ago, but what California life was like during the period.

The Carmel Art Association

Almost 100 art galleries are nestled in the downtown area of Carmel-by-the-Sea. In fact, at more than 20 art galleries, the owners actively work in the building. The oldest gallery here is the Carmel Art Association, which was founded in 1927. Other galleries include the Center for Photographic Art (established by Ansel Adams, Cole Weston and Wynn Bullock when it was called Friends of Photography). If you feel like mingling with local artists, check out Meet the Makers, where you can peruse their galleries while sampling various area wines.

Stroll and shop

Hundreds of shops and galleries are nestled around or just off of Ocean Avenue, nearly all of them locally-owned and managed, and all within walking distance. Once you’re finished shopping the boutiques, take a walk-through Carmel’s residential areas with its cottages and other whimsical architecture. And don’t be surprised if you come across a courtyard or surreptitious side street illustrating the town’s charming eccentricities.

AFTERNOON

Point Lobos State Natural Reserve

Described as “the crown jewel” of California’s state parks, it’s no wonder Point Lobos has drawn millions of visitors over the years. Abundant with life and history, including rare plants and archeological sites, it is awe-inspiring both on and off the land. Under the sea, divers can spot sea lions, otters and seals, as well as gray whales during the migration season. On land, there are hiking trails galore with free public walks offered daily.

Tor House and Hawk Tower

How can you pass up a chance to tour a place with the name “Hawk Tower?” Tor House and Hawk Tower – which pretty much look like you would expect with the stone and English Tudor aesthetic – were the home of poet Robinson Jeffers and his family for most of the 20th century. Tours start on the hour — if you’re interested. You’ll be with the esteemed company if you drop by since previous visitors have included Charlie Chaplin and George Gershwin.

17-Mile Drive

One of the most scenic cruises in the world, 17-Mile Drive zips past attractions including the 5,300-acre Del Monte Forest, all the while clinging to the Pacific coastline. Among other highlights: Fanshell Beach, the Restless Sea at Point Joe, Lone Cypress and Spanish Bay.

Monterey Bay and Cannery Row

You may have read John Steinbeck’s Cannery Row, set during the area’s industrial zenith, but it remains a must-see destination for visitors of all generations. You can reach Cannery Row by 17-Mile Drive from Pacific Grove. While Monterey is known for its charm and quaint history, Cannery Row is perfect for a pleasurable jaunt with boutique shopping and plenty of craft beer.

Pebble Beach Golf Links

Pebble Beach is a legend for a reason. One of the most breathtaking courses in the world, it’s a must-stop for avid and casual golfers alike. Pebble Beach hosted its sixth U.S. Open in 2019, the first course to do so in five decades. And in 2023, Pebble Beach will be the first course to host a men’s, women’s and senior men’s golf tournament in the same year. Besides, even if you don’t golf at all, it’s impossible to not be staggered by its emerald beauty.

EVENING

Wine Tasting

With Monterey County’s many micro-climates, Carmel has almost 20 wine-tasting rooms within a one-mile radius, so a walking tour could be just what is called for after a day spent exploring. In many instances, Carmel winemakers are around to discuss varietals and vintages.

Nightlife

After exploring Carmel’s beauty, heritage and art, why not venture into the local nightlife: Vesuvio’s hip rooftop bar, live music at Barmel’s, margaritas at Cultura, or oysters and Bloody Marys at A.W. Shucks. For canine lovers, Terry’s Lounge at the Cypress Inn underscores Carmel’s dog-friendly reputation. Meanwhile, you may find Sade’s Cocktails described as “Carmel’s only real dive bar,” but what that really means is back-to-basics drinking.