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Friday Market Update for the Week of November 5th 2021

Happy Friday, Brian Manning with the weekly update here. Let’s see. Monday of this week was a pretty quiet news day, not much to talk about there. Tuesday this week, we got CoreLogic. So this gives us some information on housing markets and appreciation. On a month over month basis for the month of September CoreLogic said appreciation was up to 1.1%. On a year over year basis, appreciation is up 18%. So CoreLogic, really following suit with Case Shiller and just seeing a really strong, very robust housing market. Still kind of wondering if we’ve hit the apex of appreciation, and it’s calming down a little bit. That’s not horrible. It doesn’t mean anything is collapsing, it’s just not bad to see it calmed down a little bit from where it was before.

We also got some rental information from apartment lists. For the month of September, rents were up 8/10%. And from January 1st through September, rents were up 16.4%.  So certainly seeing very steady increases in the rental markets. This Wednesday, and I can’t even believe it, it’s the first Wednesday of the month, another month has gone by. First Wednesday of every month, we get ADP. ADP employment reports, they’re the largest provider of private payrolls in the US. Expectations were that for the month of September 400,000, jobs would be created. And ADP said 571,000 jobs were created. So really good to see continued growth in the job market there.

Also on Friday, we got the closure of the Federal Reserve meeting. Jerome Powell speech, we had talked about this last week, what our anticipation was going to be, and of course, they came out and they announced tapering, pretty much what we had expected. The weird thing was, they only committed to tapering for the next two months, I’m not really sure what’s going to happen after that. So it’s kind of strange that they did that, we thought that they would really announce the tapering and the complete run off of their bond buying program, which probably would have taken until June, but now it’s really only two months of commitment. So we’re going to have to wait and see what happens there. And still, the question is, and one that has not been addressed, is what’s going to happen with the balance sheet. By the time we hit June of next year, the balance sheet of the Federal Reserve is going to be at about $9 trillion. And there’s been no talk about the running off of the balance sheet there so they don’t do any runoff in the balance sheet and they continue to reinvest every single month in mortgage backed securities and US treasuries, even though they’re going to stop the tapering right now, their reinvestment still had them very heavily involved in the purchasing of security. So we’ll have to wait and see what happens there.

Thursday we got jobless claims, jobless claims continue to fall. So really good to see Wednesday, strong employment report. Thursday. jobless claims falling and then today we get the BLS report. So the first Friday of every month we have the BLS report, that’s the Bureau of Labor Statistics. This number came back higher than expectations as well for the month of September, BLS report said that 531,000 new jobs were created. Also, the prior two months were revised about 235,000 jobs higher as well. What’s interesting to see, though, is that the labor participation force is down to a 50 year low. So it’s just interesting to see that even though we’re seeing job growth, less unemployment, there’s still not a tremendous amount of people out there in the job force actively looking for jobs, and anywhere you go, any business owners you talk to, restaurants, etc. You really see that. So it’s just kind of an interesting thing to see. I’m around all weekend. If you have any questions, let me know. I’d love to help you. If you want a strategic buyer consultation, you want to get pre approved, call me on my cell phone, text me. Happy Friday. Have a great day!

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