As all eyes are on the Federal Reserve andtheir anticipated actions in the upcoming July, September and Decembermeetings, including President Trump’s. This monthly job report has become oneof the most observed monthly economic indicators. Consequently, strength inJune’s hiring suggests some analysts may have rushed to push for a case ofcutting the interest rates.
However, while the markets have beenaggressive in trying to drive Federal Reserve’s actions, Federal Reserve is ina precarious position at the moment. Fed Chair Powell has suggested thatdeteriorating inflation expectations and slowing global growth may provide acase for cutting the rates, though the Fed does not want to appear to be bowingto short-term political interests. Further, premature rate cuts may leaveFederal Reserve with fewer tools when the economy indeed hits the brake. Analystsare sticking with the 25 basis points cut expectation for the July FOMCmeeting.
In terms of housing, however, it is not clearhow much further decline in rates would boost the demand. The 30-year fixed mortgage rates have beenoscillating about 70 to 100 basis points below this time last year, but thenumber of homes sold in California still trends below last year.
In looking at the BLS report, the unemploymentrate inched up to 3.7 percent as 2019 graduates and summer workers entered thelabor force. Consequently, wage growth also also posted a relatively weakermonthly growth of 0.2 percent though it is still up 3.1 percent from last year.Again, these numbers suggest that there is a little risk of inflation which isactually one of the primary reasons Federal Reserve would cut the rate as theyare concerned with lack of inflationary pressures amid lowest unemployment ratein the last 50 years.
Further, while the rate of job growth hasgenerally slowed from last year, as anticipated, it’s not very clear if tradeuncertainty has started to weigh on key trade-related sectors, such as manufacturingand transportation & warehousing, which added a combined 41,000 jobs, an uptickfrom the trend in the last few months. However, while trade uncertainty is likelyto weigh most heavily on investment spending, uncertainty in general is neverseen as a positive when comes to businesses’ hiring plans.
Notable gains continue in professional and businessservices which added 51,000 jobs, and health care, up 35,000 jobs, while retailcontinued on the losing streak with a 5,800-jobs cut in June.
According to a new CompTIAreport, the information-technology sector added 13,500 jobs in June, withsolid gains in technology services, custom software development and computersystems design, up 7,200 jobs, and computer and electronics productsmanufacturing, up 6,500. The bulk of the new hiring in manufacturing occurredin two areas, electronic instruments and semiconductors and electroniccomponents. Software and application developers continue to be the mostin-demand occupation companies are looking to hire, with 83,700 job postings inJune.
Recent Listings & Sales
If you are looking for a realtor to both sell and project manage the sale of a house in San Francisco, go with Gary! My sister and I needed to clean out, update, stage, and sell the house that our parents had lived in since 1956. Without Gary, this would have been an overwhelming ordeal. He assisted us in getting through the mountains of items to find the things we needed to keep, arranged transportation of the items to a storage unit, cleared out all of the other items, designed and supervised both interior and exterior updates, staged the house, and sold it in 4 days of putting it on the market. We interviewed several realtors, but Gary was the only one who really understood the mid-century aesthetic of the house and would do an update to preserve the unique character, highlight the views, and emphasize the expansion potential. He recommended the minimal updates needed and priced the house to attract buyers, resulting in one of the highest price per square foot sales in the neighborhood. Gary is the best!
“This was the first sale of a house for me. By hiring Gary, I didn’t have to worry about anything. The deal went very smoothly as did the purchase of my second home. I would definitely list my property with Gary again. I have also referred him to many of my family members, colleagues and friends.”
“I highly recommend Gary Snow as an outstanding real estate agent. Gary helped me buy my first property in San Francisco, and he did an excellent job of explaining the nuances of the market and the specifics of different neighborhoods. He really listened to my concerns and made it possible for me to purchase the right property at the right price. If you are buying or selling, Gary Snow knows San Francisco real estate and knows how to get things done!”
“Gary is the consummate real estate professional. After meeting him, we stopped searching for an agent. We knew we were in exceptional hands and we weren’t wrong, Gary delivered! He is, and will continue to be, our real estate agent of choice. Thank you Gary!”
“There are many agents to choose to work with. However, Gary stands out above the rest. He is not only dedicated, but also compassionate and professional manner. A realtor with a real heart and a mind for business. He maneuvered us through the pitfalls of selling our first home. We proudly recommend Gary to all our family, friends and acquaintances.”
“Gary will be dedicated and committed to your every need during the process of buying or selling your home. His drive, energy, and knowledge of the industry will insure that you get the best deal in a market that is constantly in state of change.”
“Gary was very knowledgeable about our area and well prepared for everything – beginning with our first meeting. His initial marketing piece about our property impressed us very much, even more once he added in his personal presentation. Gary is enthusiastic, but not in an overtly salesman way, which made us comfortable with him. He was able to give us his credentials without giving us an ego. When he walked through our home, we felt his interest and noticed him studying it. He made suggestions for preparing to go on the market that were realistic and promised to be completely involved in the sale, as was evident in his reason for not using lockboxes.”