Week ending February 5, 2016 economic update

U.S. Employers add 151,000 jobs in January – Unemployment rate drops to 4.9% – The Labor Department reported Friday that employers added 151,000 non-farm jobs in January. This was well below the 190,000 expected, which could signal slowing overseas has finally affected employer confidence. A robust 4th quarter of job growth in 2015 showed that employers’s confidence had not been affected by slowing overseas. Perhaps that is about to change is the feeling of some analysts. Others were encouraged by stronger growth in the manufacturing sector than expected and shrugged off the lower number as offsetting stronger than expected job growth over the last few months, and offsetting some temporary holiday seasonal jobs lost. We will see which analysts are right in the coming months. Hourly wages rose showing a 2.5% annual increase in January. This was the most positive part of the report. The unemployment rate also fell from 5% in December to 4.9% in January, its lowest level in 8 years.

Stocks sell off following U.S. jobs report – Stocks sold off on Friday following the announcement of a disappointing jobs report. The dollar also strengthened after falling earlier in the week. The strong dollar is a concern for companies that sell products overseas. Oil prices also dropped which had risen over the past two weeks. All in all not great news for investors, yet the drop over the past week was not very much. The Dow Jones Industrial Average closed Friday at 16,204.97, down from 16,466.30 last week. TheS&P 500 closed the week at 1,880.05, down from 1,940.24 last week. The NASDAQ closed Friday at 4,363.14, down from 4,613.95 last week.

Bond yields drop – The 10 year U.S. Treasury bond yield closed Friday at 1.84%, significantly lower than 1.94% last week. The 30 year U.S. Treasury bond yield closed Friday at 2.67%, down from 2.75% last week.

Mortgage rates at lowest levels in 2 years – Uncertainty has caused investors to move money into lower returning safer investments like U.S. treasury bonds and mortgage securities. At the same time central banks around the world have dropped rates. Our bond and mortgage security rates, while historically low, offer a decent return comparatively. This has continued to push rates lower. The 30 year fixed rates below loan amounts of 419,000 are around 3.625%. 30 year rates for loans above 419,000 are about 3.875%. The 15 year fixed was around 3.10%. The 5 year was around 2.625%.

The real estate market seems to be in full swing! I’m seeing more listings come out, but they are selling so quickly, if priced right, that our historically low inventory levels seem to be here to stay. That is driving prices up, yet not at the levels seen a couple of years ago. I’d expect most of the years price appreciation to occur in the next few months, and prices should level off in late summer as they did last year. Interest rates are at the lowest levels in a couple of years, which are close the lowest rates in decades. If you are buying, buy now! If you are not buying, you should! If you are going to move up, I’d do it now! If you haven’t been thinking of moving up, you should!

Have a great weekend!

CAROL WOLFE of Rodeo Realty Talks to Ventura Blvd Magazine

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17501 Ventura Boulevard, Encino | 818 285-3688 | CarolWolfe.com | Carol@CarolWolfe.com

An icon in San Fernando Valley real estate, broker associate Carol Wolfe’s slogan is “Nobody Does it Better.” For more than four decades she has been striving to provide real estate clients with an unparalleled level of service—based on integrity, honesty and a commitment to excellence. She is a licensed broker, a Certified Residential Specialist (CRS), e-Pro, Architectural Specialist and Certified Negotiator. Carol specializes in properties throughout the San Fernando Valley, especially Encino, Sherman Oaks, Studio City, Tarzana, Woodland Hills and Calabasas.

In 2015 Carol had another record-breaking year, once again ranking among the top agents at Rodeo Realty and the #1 agent for Rodeo Realty throughout the San Fernando Valley. Carol and Rodeo Realty are associated with the largest recognized luxury networks, and these affiliations position Carol as a luxury leader for marketing high-end properties internationally. With the ability to specifically target exclusive Asian and European markets, Carol and Rodeo Realty utilize the latest technology and resources to increase global exposure.

Carol is an active member of the Encino Chamber of Commerce and supports the local community. She and her husband, Bruce, a real estate developer, have two children: daughter, Alex, who works with Carol, and son, Adam, a computer consultant. When she’s not working, Carol enjoys traveling and spending time with her two grandchildren: David, 5, and Eden, 3.

What does it take to be the best in the real estate business?

“What I bring to the table is outstanding client representation, detailed market knowledge and high-tech marketing solutions. I have always been on the cutting edge of technology. I am very good at negotiating the best price for my clients and great at problem-solving. Another thing that makes me successful is the great relationships I have with other REALTORS®. I’m known to be very cooperative and easy to work with.”

What’s one trend that is defining the real estate industry today?

“Transactions have gotten more complex over the years, and there are often many difficulties. Many of my clients have expressed a desire to work with me because they trust that things will be handled with expertise and the utmost professionalism. My clients often include referrals from business managers, attorneys, CPAs, real estate agents and past clients.” 

What’s most rewarding about your work?

“The many friendships I’ve made. To have clients thank me in the end for a job well done and refer me to their friends and families is the best reward. It’s extremely rewarding to work with my clients, gain their trust, guide them through one of the most important transactions of their life and deliver beyond expectations.”

Carol’s 2015 sales included two Royal Oaks estates for $4.5 and $5.5 million, two Tarzana estates—one of them an NBA basketball player’s—for $2.75 million each, and a Royal Oaks Colony estate for $2.7 million.

What would you like potential clients to know about you?

“I will take good care of them; they have chosen the best agent in the area. I will work relentlessly to make sure my clients get the best possible results.”

Tell us what your clients are saying about you.

“One example is Robert Bluman, an agent who used to work in Encino for more than 32 years. He retired and moved out of state, and when it came to selling his own property he chose me over all the agents he knew and worked with. He said, ‘Having recently retired as a Los Angeles area residential and commercial real estate broker after 32 years in the business, I had the opportunity to work with many, many real estate professionals. The incredible quality of the job that you did on the sale of this property was probably one of the finest and easiest transactions that I have ever encountered in my life.’

Howard Borris, a business manager who handles celebrities and high net worth individuals, said, ‘I have closed literally hundreds of real estate purchases, sales and trades. I can honestly say that your participation in any deal adds great dimension, efficacy and technical skills too few brokers possess.’

Brad Stone, a commercial real estate agent, said, ‘Not only did you achieve what you hoped to do, your negotiation skills proved to be an outstanding advantage to the end result.’

Another retired agent, Rebecca Uzemeck, said, ‘When you first listed our home I told my husband it would take 3–6 months. But you did it in 30 days from start to finish. We are extremely grateful, and our experience with you and your staff was above all our expectations.’

And attorneys Stephen Monroe and Linda Monroe said, ‘As professionals ourselves, we recognize the importance of experience and professional service, prompt and timely action, and efficiency. We could not have asked for more.’”

Article courtesy of Ventura Blvd. Magazine

Josh Flagg Sits Down with the Wall Street Journal

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Q. Have any clients made unusual demands when closing a deal?

Josh Flagg, executive estates director, Rodeo Realty, Beverly Hills; appears regularly on “Million Dollar Listing Los Angeles.”

“I negotiated a deal in Holmby Hills where I represented both sides. I go to look at the house with a couple and their son, who is probably 6 or 7 years old, and a golden retriever comes out on the lawn. The kid plays with it while we all look at this huge estate and I don’t think anything of it.

Either one of my assistants or teammates writes up an offer on the property from these buyers and I look over the paperwork. They offer very close to full price for a $24 million deal. And that’s when I see the additional terms: It says the sale is contingent on the inclusion of the dog.

I call them and say, “You’ve got to be kidding.” But they’re insistent: The kid likes the dog and they don’t want to say no to the kid. I figure this deal is over. I call the seller and tell him, and he just chuckles. So I say, “No, you don’t understand. I’m being serious.” And he says, “How much is the offer?” I tell him it’s $24 million and he says, “Uh, let me speak with my wife.”

What happened? It was a $24 million offer! What do you think happened? They threw in the dog.

Laszlito Kovacs

Mark D. Friedman, agent, the Friedman-Rosenthal Team, Halstead Property, New York City; also makes guest appearances as an actor on “Law & Order: SVU.”

“I had a $19 million listing on Central Park West, owned by a very famous entertainer. I also represented the buyer, who had inherited a ton of money and was looking at properties with this kind of nutty attorney who was like a friend and adviser. We ended up selling it for pretty close to $18 million.

So we’re at the closing table at the property management office, with the buyer, the nutty attorney, someone from the closing department and a couple of attorneys. In the conference room, there are three huge pictures on the wall, including a beautiful picture of the living room of the property the guy is buying. It’s a nice, blown-up photograph in a big, heavy, wooden frame, about 4 feet across.

The nutty lawyer looks up and says, “Hey, that’s your living room. You should hang that in your house.” I say, “I can get you another picture.” But he says, “No, this is good.” He stands up, takes the picture off the wall and puts it on the conference table.

I say, “That’s their property,” meaning the management company whose office we’re in. And he says, “We just spent a lot of money.” Which was true. He’s about to hand me a check for $700,000, so I really don’t feel like I can say anything. I turn to the woman who works for the management company and softly say, “Are you going to say something?” And she says no. Everyone at the table just sits there staring at each other and at the picture laying there on the table.

So I just say, “Good luck getting past security.” And in fact they walked past security and out of the building with the frame with no problem at all.

Edited from interviews by Katy McLaughlin

Write to Katy McLaughlin at katy.mclaughlin@wsj.com

Where Most Out-Of-State Transplants Moving To Los Angeles Come From

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It turns out most out-of-state transplants coming to Los Angeles aren’t coming from all that far away. Las Vegas, just six hours away (in good traffic), sends more people our way than any other metropolitan area in the country.

Or at least that’s what an analysis conducted by the moving website Sparefoot, of U.S. Census data between 2009 and 2013, says. According to their work, precisely 6,264 people from Sin City picked up and made the long drive down the 15 Freeway before settling down in Los Angeles County during the five years analyzed, more than any other out-of-state locale.

Along with Las Vegas, the other leading out-of-state sources of transplants who clog up the 405 are Phoenix, New York, Chicago, and Seattle. Though if we’re going to nitpick, the analysis was built on a county-by-county analysis, which separates out the five New York boroughs into their own counties.

When you put all the boroughs together, you arrive with a value of exactly 6,061 New Yorkers who moved here between 2009 and 2013. That’s more than the 4,042 from Phoenix, but still less than Vegas.

To put this all in perspective, all these out-of-state transplants are dwarfed by the number of people moving into L.A. County from other places in California. More than 30,000 people moved from Orange County into Los Angeles during this period, along with 22,327 from San Bernardino County and 13,337 from Riverside County.

In all, a total of 216,018 out-of-county folks moved to L.A. County over the five-years examined. Looks like we’ve still got it.

 

U.S. economy adds just 151,000 jobs in January

Job growth in the U.S. slowed sharply last month, the latest in recent signs of economic weakening amid turbulent global financial markets, lower corporate profits and a contracting manufacturing sector at home.

The government said Friday that employers added 151,000 jobs in January, down from a revised 262,000 jobs in December and 280,000 in November. Late last year’s hiring was probably inflated by unseasonably warm weather; still, analysts on average were expecting job growth of about 190,000 last month.

The unemployment rate, however, edged down to 4.9% last month, the lowest since February 2008. And in another positive sign, the Labor Department said Friday that workers’ average hourly wages rose a strong 12 cents in January to $25.39 after being flat the prior month. The January figure was up 2.5% from a year earlier.

The jobs report may add to anxieties that the American economy is losing momentum and could be in for a sharp slowdown after more than 6 1/2 years of recovery. The weaker-than-expected job growth, if followed by more signs of slowing, would likely give the Federal Reserve pause in nudging up interest rates at its next meeting in March.

Even before stocks and oil prices began convulsing at the start of the year, thanks largely to worries about China’s economic slowdown, job growth in the U.S. was expected to moderate after back-to-back years of robust increases that outpaced the broader economic performance. The economy added an average of 221,000 jobs a month last year, a pace that was unlikely to be sustained given the slow economic output and an economy closing in on full employment.

In January, the hiring picture by industries was mixed. Retailers led the way, adding 58,000 jobs over the month after no gain in December. Restaurants kept up their brisk level of hiring, increasing payrolls by 47,000. And manufacturing added a surprisingly strong 29,000 jobs, despite declining production indications in the last four months.

The big weakness in hiring last month came in the sprawling business and professional services, which added a small 9,000 jobs after increasing a net 60,000 staff in December. Private educational services, the transportation and warehousing sector, as well as the oil and related mining industry, shed jobs last month.

 

Article courtesy of the LA Times

 

Is this the rarest sandwich in L.A.? You can only get it once a month

If you’re looking for a truly great sandwich, head to Boyle Heights. More specifically, head to the Primera Taza Coffee House across from Mariachi Plaza, where co-owner Chuy Tovar and his wife, Rosalinda Hernandez, are making two kinds of lonches.

The catch? You can only get them about once a month.

Tovar says he makes the sandwiches when he can get a specific bread flown in from Guadalajara. It has to be this bread, or there will be no sandwiches.

“I gained like 15 pounds trying to find a bakery here,” said Tovar, standing behind the counter at his small coffee shop. He never found one.

For the pork lonche, Tovar uses thick slabs of pan-seared pork loin, cooked at Corazon y Miel in Bell, Mexican crema, slices of tomato, a couple rings of red onion and a hot red salsa made by Hernandez. The torpedo-shaped sandwich is presented on a plate, dripping with the salsa, with a toothpick stuck in either side, in a feeble attempt to keep this monster together.

The crunchy bread gives way to a chewy core, creating the perfect shell for the tender meat and what seems like a ladle-full of spicy salsa and crema. Six napkins later, you are happily full, with a stain on your shirt you can wear as a badge of pride at the office.

Then there’s the cheese lonche. Tovar is using that same bread, layered with avocado, crema, pickled jalapenos and panela cheese. But it’s not just any panela. The cheese on this sandwich is softer and creamier than anything you’ll find at a market.

That’s because, Tovar says, he has it made by a vendor he found at a local farmers market. And the vendor’s only making it for him, for these sandwiches. When asked if he can reveal the cheesemaker’s name, he simply replied, smiling: “I can’t.”

Need a lonche and a bottle of Chaparritas? Call ahead, or check the shop’s Instagram account to find out when they’re available.

1850 1/2 E. 1st St., Los Angeles, (323) 780-3923, www.primeratazacoffee.com

Article courtesy of the LA Times

7 Fun Options For Where to Watch the Super Bowl in Los Angeles (2016)

Got plans for where to watch the Super Bowl this year?

Whether you’re a Broncos fan, a Panthers fan, or have no real rooting interest, you have to admit it’s always better watching the Super Bowl with big group and plenty of tasty snacks (and drinks!) to go around.

To that end we’ve put together a quick  rundown (in no particular order) of  spots in and around Los Angeles providing special food deals and festivities in celebration of the big game for 2016.

Enjoy!

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1. The Morrison Pub

Los Feliz sports joint, The Morrison Pub will throw a huge party ALL DAY on Super Bowl Sunday. There will be an extra large TV set up outside and the game will be broadcasted live throughout the restaurant with the volume up. The Morrison’s entire parking lot will be covered with a tent for indoor and outdoor entertainment. Food and drink specials such as appetizers, dessert, beer & cocktails will be offered, including “Super Bowl” themed crafted cocktails made just for the day. Brunch will be available until 2:00pm and daily Happy Hour will happen 3:00pm – 7:00pm.

More information

2. Doug Benson Watches the Superbowl + Pot Luck!

Looking for some comic relief during the Super Bowl? I think we have what you are looking for. Doug Benson is having a Superbowl viewing party and pot luck. It’s totally free BUT you need to bring a dish for the potluck don’t be the guy with two bags of chips or you’ll get some side eye and no one will speak to you. The fun happens at Cinefamily from 2:00pm – 7:00pm. Register via link below!

More information

3. HACHÉ LA

Silver Lake’s new age burger joint is serving burgers, beers and Bottomless Mimosas on Super Bowl Sunday. Watch Peyton Manning and the Denver Broncos take on Cam Newton and the Carolina Panthers on the sunny patio and order up succulent chopped steak burgers, house-made Guacamole & Chips and Bottomless Mimosas to sip on throughout the entire game. Don’t skip dessert their Cookie Butter Frozen Custard whipped up with liquid nitrogen is delicious.

More information

4. Sausal

El Segundo’s new Nuevo Rancho hotspot will feature three new tailgate-friendly specials from 2:00pm – 7:00pm, including comfort food master Chef Anne Conness’ Chicken Wings tossed in housemade adobo sauce, Pork Chili Verde Nachos, and Queso. Wash ‘em down at any seat in the house with drink specials ($2 off ) like the signature Rancho Margarita and the restaurant’s exclusive brews.

More information

5. Venice Whaler

Party at the Venice Whaler! Watch the Carolina Panthers play the Denver Broncos, upstairs in the Crow’s Nest on the sunny balcony or opt to view the game downstairs in the cozy Crab Shell Bar while dining on tasty specials like the Super Bowl Platter, which includes succulent blackberry BBQ ribs, jalapeño poppers and crispy touchdown slaw for just $16.00. Raise a complimentary drink (must be 21 or older) at 3:30pm and order up a special Super Bowl Sour crafted with Kappa Pisco, egg whites, lime juice, Peychaud and blood orange bitters for just $8.00.

More information

6. Artisan House

The popular DTLA brunch destination is offering a $30pp post-brunch buffet of game day favorites like a Build Your Own Burger, Hot Wings, and Nacho Tater Tots. Whether you’re there to root for the team or watch the ads, indoor and outdoor flatscreens will provide optimal viewing while you kick-back and wash down your food with a cocktail or beer from the bar, or the $7 Bloody Mary special they are offering!

More information

7. Dog Haus

Take advantage of Old Town Pasadena’s gourmet sausage and burger haven’s weekly all-day happy hour (every Sunday). Come early to grab a seat and tune in to pre-show coverage – and stay late to celebrate the winner (or mourn the loss). All Day Happy Hour includes: $4 draught and canned beers, $4 well drinks, $2 off signature cocktails, $1 sliders and $1 fries.

More information

 

Article courtesy of We Like LA

Top Your Ice Cream With Cotton Candy At This Shop Opening In Los Feliz

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A popular Korean ice cream shop known for topping soft serve with cotton candy, French macarons and other sweet treats is heading to Los Feliz soon.

If you haven’t already jumped on the cotton candy-soft serve trend that’s popping up at places like CottonHi in Koreatown, you’ll soon have another chance to indulge in the delicious decadence. Milkcow, whose only other U.S. location is in the Bay Area, will soon be serving soft serve, coffee and other desserts on Hillhurst Avenue, according to Eater LA.

Even if you aren’t into the whole cotton candy thing, Milkcow offers a range of toppings for their organic, milk-based soft serve. You could go for a drizzle of chocolate or hazelnut syrups, Oreo crumbles, honey or honeycomb, jelly beans, mint syrup and almonds, or pistachio syrup with cashew clusters. You could also have a French macaron balanced atop your soft serve. But if you’re really looking to go big, may we suggest the Mont Blanc option with chocolate “rocks,” Oreo crumbles, apple syrup, and, of course, cotton candy?

Milkcow is expected to also offer coffee and some other treats, as they do at their Fremont spot and multiple shops across Asia.

There’s no exact date yet for the opening of Milkcow, which will be right next to Mustard Seed Café, but Eater LA suggests that it could be open in a few months. Get your sweet tooth ready.

 

Article courtesy of the LAist

Metro To Introduce Cell Service In Subways Next Month

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Those of us who feel threatened by our 4G/LTE connected world have always been promised some moments of freedom from the incessant buzzing of irrelevant notifications when we take a ride on the subway. Deep in the Los Angeles underground, where there is no cell-service, our devices are only good for only some mindless games, and locally stored music.

At least they only will be until late March. Starting then, you’ll be able to talk, text, and Tinder on the train when, according to KPCC, Metro will begin introducing cell-service in its subway tunnels and stations beneath downtown Los Angeles.

When that occurs, you’ll be able to ride aboard Red and Purple line trains going in either direction between Union Station and 7th Street/Metro Center while talking (or scrolling) on your phone, uninterrupted as the train travels beneath downtown. It also means that annoyingly loud person opposite you on the train will be able to do the same.

Metro has been working on this for a while. A memo issued in December of 2014 revealed the agency had signed a 20-year contract with InSite Wireless LLC to provide service in underground stations and tunnels.

Although the memo provided a somewhat optimistic timeline, saying most trains would have service and stations Wi-Fi by January 2016 (the past), it does clarify that Metro is working to build service into its entire underground system.

When the network is finished, you’ll be able to use cellular voice and data aboard trains at all times, and latch on to Wi-Fi while you wait for trains at underground stations. While we’re not sure whether or not aboveground stations will eventually get Wi-Fi too, we’ve reached out to Metro and will update the post when we have an answer.

You’ve got to wonder, though, how loudly will you have to shout into your phone for your voice to be heard over the din of the train? Time will tell.

 

Article courtesy of the LAist

Stocks' early gains vanish by midsession; retailers sink

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U.S. stocks are wavering between small gains and losses at midsession after a midmorning rally faded.

Retailers had some of the biggest losses Thursday. Ralph Lauren plunged 17% after its revenue fell short of forecasts. Kohl’s also sank 17%.

GoPro tumbled 13% after the maker of wearable cameras issued disappointing results.

The price of oil gave up an early gain and edged lower.

The Dow Jones industrial average edged up nine points, less than 0.1%, to 16,346 as of 11:45 a.m. Eastern time.

The Standard & Poor’s 500 index lost six points, or 0.4%, to 1,905. The Nasdaq composite gave up 16 points, or 0.4%, to 4,487.

Bond prices rose. The yield on the 10-year Treasury note fell to 1.85%.
Article courtesy of the LA Times