Author: Rodeo Realty Media Team

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November 2014 Month End Economic Update

November 2014 Month End Economic Update

 

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Another record breaking month for US stocks  – The US stock markets posted their sixth straight week of gains with new highs. Dropping oil prices were the source of big news this week, and month. Lower energy prices are causing low inflation. Many experts predict that inflation will remain extremely tame for a long period of time partly as a result of OPEC’s decision to keep oil production at its current high level. The Dow Jones Industrial Average closed the week at 17,828.24 above last weeks close of 17,810.06 , and  up from the October 31 close of 17,390.52. The S&P 500 closed Friday at 2057.56 below last Friday’s close of 2063.50, and up from October 31’s close of 2018.05. The NASDAQ closed at 4791.63 above last weeks close of 4712.97, and above last month’s close of 4630.74.

 

Consumer Price Index- The Bureau of Labor Statics reported that prices remained flat in October. The year over year CPI increase showed the inflation rate at 1.7%, well below the Federal Reserve’s target rate for a healthy economy. The Fed released its minutes on November 19 from its October meeting. In the minutes it cautioned of “evidence of a possible downward shift in long term inflation expectations.”

 

Treasury Bond Rates – The 10 year Treasury bond closed the week at 2.18% below last week’s 2.31%. It began the month at 2.36%. The 30 year treasury yield was 2.89% Friday, down from last week’s 3.02% and well below 3.07% at the start of November.

 

Low Inflation – The US Consumer Price Index showed the year over year inflation rate at just 1.7%, well below the Federal Reserve’s target rate. Europe and Asia are also experiencing very low inflation. This is causing worldwide rates to drop. Our rates are well below comparable time period securities of other countries, holding rates low and causing treasuries with longer terms to drop in rate. These directly affect mortgage rates. Much of this low inflation is due to dropping energy costs as oil prices have plummeted.

 

Oil prices- In the past few months the price of a barrel of oil has dropped from over $100 per barrel to under $70 per barrel. The cost at the pump has dropped on average 88 cents a gallon since July to a US average of $2.82. California prices are a little higher. This brings gas prices to the lowest levels since 2009.

 

Mortgage Rates – The Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average for the week was 3.97%. The 15 year fixed was 3.17%.

 

US jobs – In October employers added 214,000 jobs and the unemployment rate was 5.8%. The November figures will be released at the end of next week.

 

California jobs – California gained 41,500 non-farm jobs in October. The California unemployment rate remained unchanged at 7.3%. November figures will be released in the 3rd week of December.

 

California Association of Realtors –   The LA region had a median price of $477,000, down 1.6% below September’s $486,030 and up 6.8% from the $447,130 one year ago. There was a 3.3 month supply in October 2013. It must be noted that CAR figures do not include sales that were not reported to a MLS system. CAR figures for November will be out around the 3rd week of December.

 

Pending home sales were up in October – CAR reported their Pending Home Sale Index last week. Pending home sales in October were up 2% from September. This was the second straight month of rising pending sales which is an indicator that the November sales figures will show an increase as these transactions close.  

 

Consumer Confidence – Consumer confidence rose to a 7 year high according to the Thomson Reuters/University of Michigan index. This was fueled by dropping gas prices, increases in employment, and rising stock prices. It also led to increases in projections in the holiday retail sales expectations.

 

New home sales rise- The Commerce Department reported that US new home sales in October rose 0.7% from September.

 

I have seen a good pickup in activity. It seems that the real estate market has picked up at a time of year that it usually slows down. Inventory levels have dropped after increasing throughout the year. This is causing more multiple offers. We are also seeing homes that sat for a while beginning to sell. Some with multiple offers after not seeing an offer for several weeks! I would not be surprised to see prices surge in the near future! I am sure that lower interest rates are having an impact. It now looks like rates may remain low for longer than expected. Every expert had expected them to rise. Now that gas prices have plummeted and inflation has been so tame the expectations are for rates to remain low!

 

I hope you are having a Happy Thanksgiving Weekend!

 

Syd

 

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Economic Update For The Week Ending November 22, 2014

Economic update for the week ending November 22, 2014

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Another record-breaking week for US stocks  – The US stock markets posted their fifth straight week of gains with new highs, buoyed by positive economic news from Europe and China, and positive job gains at home. The Dow Jones Industrial Average closed the week at 17,810.06, up from last weeks closes of 17,634.74. The S&P 500 closed Friday at 2063.50, up from last Friday’s close of 2039.82. The NASDAQ closed at 4712.97; above last weeks close of 4688.54. The People’s Bank of China made a surprise interest rate cut on Friday, its first cut in 2 years. Mario Draghi, the president of the European Central bank said that the central bank is prepared to step up efforts to give the Eurozone a much-needed boost. Both of these announcements led to gains in worldwide markets.

 

Consumer Price Index- The Bureau of Labor Statics reported that prices remained flat in October. The year over year CPI increase showed the inflation rate at 1.7%, well below the Federal Reserve’s target rate for a healthy economy. The Fed released its minutes on November 19 from its October meeting. In the minutes it cautioned of “evidence of a possible downward shift in long-term inflation expectations.”

 

Treasury Bond Rates – Yield Curve Flattens to a 2 year low – The 10 year Treasury bond closed the week at 2.31% almost unchanged from last Friday’s close of 2.32%. The 30 year treasury yield (rate) was 3.02%, down slightly from last week’s 3.04%. The yield curve between the 2 year treasury and the 30 year treasury, which is the difference between the rates (spread), reached a 2 year low with a spread of 2.51%. It was 3.639% on November 20, 2013. This is due to inflation being below the Federal Reserve’s target rate. Expectations of inflation push up long-term rates, low inflation pulls them down. US bond yields are lower than many foreign countries making them very enticing to foreign investors. For example our 10 bond year yields 1.54% more than German 10 year bonds.

 

Mortgage Rates – The Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average for the week was 3.99% down from 4.01% last week. The 15 year fixed was also down at 3.17% from 3.2% last week.

 

California gains 41,500 non-farm jobs – The California Employment Development Department reported that non-farm payrolls increased in October by 41,500 jobs. This figure eclipsed the September gain of 14,200 jobs and was way above expectations, yet the California unemployment rate remained unchanged at 7.3%.  California recorded the highest monthly job gains in the country in October. The total job gains, according to the EDD, since the recovery began in February 2010 has been 1,446,600. The year over year increase was 319,500 jobs, a 2.1% increase. Of that increase Professional and business services posted the largest numerical increase adding 106,000 jobs, up 4.5%. Construction posted the largest percentage increase of 5.3% for the year, adding 34,000 jobs. Financial activities were the only sector to lose jobs and showed 4,700 fewer jobs than one year ago, a 0.6% decrease.

 

California Association of Realtors – CAR released its October sales figures last week. They stated that despite the lowest mortgage rates in 18 months sales in October remained unchanged from September. October sales were down 1.9% from the number of sales in October 2013 marking one full year in which the number of sales was below 400,000 units. The Median price decreased by 2.3% in October to $450,620 from September’s $461,370. The median price is the point in which half the homes sell for more and half the homes sell for less. They also reported that the higher priced markets remained stronger than other markets.  Inventory levels slipped to a 3.8 month supply from a 4.2 month supply in September. There was a 3.3 month supply in October 2013. It must be noted that CAR figures do not include sales that were not reported to a MLS system.

 

Lower rates have led to more buyer demand. It seems like the number of multiple offer situations have increased. I would not be surprised to see month over month prices to show an increase after being flat the past few months. It takes a while for escrow to close so I am looking for this increase to be reported in the December and January closings. We will wait and see!

 

Have a great weekend!

Syd

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The first Annual Thanksgiving Food Drive By Rodeo Realty Sherman Oaks

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The first annual Thanksgiving food drive was done by RODEO REALTY’s finest, Brandon Kramer, Jim Wagner and Ryan Trefry. These altruistic agents gathered in their home communities of Lake Balboa and Sherman Oaks to collect non perishable dry foods, cereal, pasta and canned treats for the upcoming holiday season. These areas have over 1,500 homes and belong to the greater Los Angeles area. Over 90 plus households and families helped aid in each community and contributed over 800 pounds of food!

 

They received positive feedback from all the neighbors regarding RODEO REALTY and their ability to reach out to those less fortunate this coming holiday season. They partnered with the Regional Los Angeles Food Bank in Downtown, Los Angeles on Saturday, November 15th. Gelson’s Super Market donated brown grocery bags which were used to collect all food along with coupons and discounts for turkeys for this upcoming Thanksgiving. These were handed out to several of the families who participated in the food drive and contributed in this charitable endeavor. The community members who participated were very impressed with the organization of the event, work of RODEO REALTY’s agents and giving back to the community.

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They hope to continue the act of giving this holiday season and in the future. They will be providing several boxes to RODEO REALTY offices to keep in the reception area.  Please feel free to contact Ryan Trefry for more information on how to give back- (818) 425-3234. The Regional Los Angeles Food Bank in Downtown, Los Angeles also encourages help for the hungry with a virtual drive registry, monthly giving and donations of cars, boats or RV’s this holiday season. Their mission is to “mobilize resources to fight hunger in our community.”  Over 97% of all contributions go directly to families that struggle this holiday season. Other great giving back activities in Los Angeles include; Midnight Mission,Union Station Homeless Services, One Voice, SOVA Community Food and Resource Program and Hope of the Valley Rescue Mission. RODEO REALTY commends Ryan Trefy, Jim Wagner and Brandon Kramer for assisting the community this holiday season and benefiting the homes of many.

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Want a Smooth Transaction? Michelle Garcia Sandoval of Encore Escrow, Inc. can help you Close Deals!

Want a Smooth Transaction? 

Michelle Garcia Sandoval of Encore Escrow, Inc. can help you Close Deals!

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Testimonial for Michelle Garcia Sandoval of Encore Escrow, Inc. Studio City Branch

Candlewood Drive Escrow

Michelle, thank you for another outstanding job. There were some challenges with this transaction.  Nonetheless, you and your staff handled this transaction with your usual professional acumen.

 

Thanks again for a great job.  Looking forward to closing our next transactions.

Neal Adler

Associate Manager, Rodeo Realty

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Leo McHale recognized by Syd Leibovitch for outstanding production in 2014

Syd Leibovitch, president and CEO of Rodeo Realty, recently congratulated Leo McHale for his outstanding production so far in 2014.As of Oct. 31 he successfully closed 31 sales on both the listing and selling side totaling $21 million. Four of these sales were in the $1.1- to $1.4-million range in Agoura Hills and Woodland Hills including a former celebrity-owned Mediterranean Estate in which he represented both the seller and the buyer.leo

McHale has earned the designation as the No. 1 Top Selling Agent in Agoura Hills, with 37.5 sides closed per Conejo Valley MLS from Aug. 1, 2012 through Sept. 31, 2013. Widely recognized as the No. 1 Top Selling Agent in the Lake Lindero Area he is rapidly approaching 80 closed sales in this tract alone with $44 million in volume, easily outselling any other brokerage or agent combined.

Consistently in the top 1 percent company-wide, his fierce work ethic, people skills, creativity and marketing talents has enabled him to help nearly 100 people buy and sell their homes in the last 30 months. Even more impressive is his down-to-earth demeanor and excellent reputation as honest, personable and of high integrity.

Central to McHale›s success is his dedication and passion for his clients. Often referred to by his neighbors as the hardest working agent in the business  his name has become a brand in itself and is a permanent fixture seen throughout the Agoura Hills community. The secret is to outwork everyone around you and to have integrity he says. I am truly blessed to help someone buy or sell a home and I am proof that you can be successful without sacrificing your values.

While often the Realtor of choice in Lake Lindero, he consistently sells throughout Agoura Hills, Westlake Village and the Conejo Valley.Leo McHale can be reached at (818) 621-4940 or at www.leomchale.com.

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Rodeo Realty: Congrats to Jordana Leigh, Ben Bacal, and Joe Babajian being named Top 200 Real Estate Agents in America 2014

Congrats to our Top Agents at Rodeo Realty for being named America’s Top Real Estate Agents in 2014.

We are truly honored to have you at Rodeo Realty!

Ranked 75: Ben Bacal

 2013 Sales Volume $152,150,000 33310028

 Ben Bacal began his real estate career at the young age of 24. In his first year as a realtor he sold more than $17 million dollars in real estate. Since then, his annual sales have more than quadrupled making Ben a leader in Southern California’s luxury real estate business. Ben’s success in real estate landed him on the front cover of the LA Times Business Section.  He was listed as one of The Wall Street Journal’s TOP 1000 agents nationwide.  The LA Times showcased Ben’s $20,000,000 record breaking sale in Trousdale Estates located in Beverly Hills (This home was purchased as a tear down).  Ben was also involved in the $75,000,000 sale of the most expensive house ever sold in Malibu.   Other highlights (just to name a few):

– The sale of Madonna’s home in Beverly Hills for $19,500,000.

– The sale of Megan Ellison’s (film producer and Oracle heir) compound on Nightingale Drive totaling over $47,000,000.

– The largest single family home ever to sell in the bird streets of the Hollywood Hills for just under $40,000,000 in 2013.

A great real estate transaction is not solely built on experience with getting the job done, but also on the strength and quality of relationship between client and REALTOR®.  Ben is a proven closer and is consistently breaking sales records changing the status quo for real estate prices in Los Angeles.   Ben was ranked the #1 agent at Sotheby’s International Realty and is now proud to be working with Rodeo Realty on the sunset strip.  Ben is well respected and has developed invaluable working relationships with his peers.  He has become the “go-to” agent for hard to find trophy properties and has become a leader in the industry.  Ben’s professional associations include the National Association of REALTORS®, the California Association of REALTORS®, the Los Angeles Multiple Listing Service, and the Malibu Board of REALTORS®.

Ben’s relentless hard work has helped establish his track record for proven success.  He is highly likable and his business connections have helped him create mega sales in the Los Angeles area.  Ben and his team are committed to clear communication and loyalty for each and every client looking to buy or sell a home. When you work with Ben, you are working with a calculated and realistic professional who’s bold decisions aim to bring the client both a rewarding and satisfying result.

 

 

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Ranked 116: Joe Babajian

2013 Sales Volume  $131,653,251

Joe Babajian, the number one real estate agent for Rodeo Realty in Los Angeles County, specializes in estate and other prime properties in Beverly Hills, Bel Air and Holmby Hills. He is one of the most successful real estate agents in the Nation with sales totaling over $2 billion since 2000.

Only a small, elite group of Realtors dominate the luxury home market on the distinguished Westside of Los Angeles and Beverly Hills. Joe Babajian is one of these realtors. With over 25 years of industry experience, record-breaking sales and an extensive portfolio that boasts some of the most distinguished properties and high-profile clients in the world, Joe’s outstanding achievements over the course of his career have earned him countless awards and accolades.

As one of the most successful realtors in the Nation, Joe has sold nearly $2 billion in residential real estate since 2000. He is the foremost expert in all facets of luxury residential real estate.

Committed to making his clients a top priority, Joe provides an unparalleled level of service by thoroughly listening to his client’s needs and concerns. He provides expert guidance, personalized solutions and masterfully negotiates the most profitable deals.

Due to his longstanding reputation as a Top Realtor and his incomparable knowledge of the Beverly Hills & Los Angeles residential real estate market, Joe has been consulted by top media news programs and magazines such as Entertainment Tonight, Extra, Access Hollywood, 20/20, In Style, People, Entertainment Weekly, GQ and Beverly Hills [213].

Throughout his career as a top realtor, Joe’s outstanding production has broken countless records and earned him numerous awards. His extensive clientele includes celebrities, entertainment executives, CEOs and heads of Fortune 500 companies. His knowledge of the luxury real estate market and consummate service to his clients is unparalleled.

As one of the top real estate agents in Beverly Hills, Joe Babajian has earned a reputation for his superior level of service, his discretion and a passion for finding his clients the home of their dreams.  Having represented countless celebrities and VIPs in his 25 years of experience as a real estate agent, he knows how to find the right home for his clients who are out of town or on a limited schedule.

Whether you are a looking to buy or sell your home, Joe Babajian is confident he can deliver what you need. Contact top Beverly Hills Realtor, Joe Babajian now for more information about how he can help you.

 

 

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Ranked 151: Jordana Leigh  

2013 Sales Volume $119,000,000

Jordana Leigh specializes in the sale of fine properties throughout the Westside of Los Angeles. She consistently receives top accolades from clients and co-workers for her commitment to her clients and her unmatched work ethic. She is one of the most successful real estate professionals in the nation and has represented the most distinctive properties in Los Angeles for the most distinguished clients in the world. A focused persistence and an unwavering dedication to her clients’ needs has boosted Jordana into the top 1% of Westside agents overall. Her negotiating skills and her unparalleled attention to detail have ensured her success since she began real estate fourteen years ago.

A graduate of the University of Southern California, Jordana possesses an unmistakable combination of unbridled energy and enthusiasm coupled with an uncompromising need for perfection that has propelled her to the top of her profession. Jordana is frequently consulted by top media news professionals for her outstanding knowledge of the market. During her real estate career, she has continually achieved outstanding sales and has earned an impeccable standing in the real estate community. Her extremely professional reputation ensures that this will continue. Jordana prides herself on being accessible to her clients at all times and welcomes the opportunity to work with her clients, their friends and referrals whenever possible. Please feel free to contact her with your questions or for information anytime.

Recognized for her knowledge, dedication, and persistence, Jordana Leigh has risen to the top 1% of Westside Agents. Respected for her expertise and customer service, her clients value her input tremendously and rely upon her consistently. Jordana covers the entire Westside from Malibu to Marina Del Rey and Santa Monica to Beverly Hills.

Jordana’s goal is to provide her clients and prospective clients with superior service at all times, so please take some time to access all of the resources on her website or click contact me to email her directly.

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