Emp Latest News

Big jobs number - a win for luxury housing

Job creation crushed estimates in July as the economy added 255,000 positions, according to the Labor Department. The headline unemployment rate held steady at 4.9 percent, though a more encompassing measure that includes those not actively looking for work and those working part-time for economic reasons moved up a notch to 9.7 percent. Though still mired near generational lows, the labor force participation rate ticked up one-tenth to 62.8 percent as those counted as not in the labor force decreased 184,000 to 94.3 million.

Hourly wages also moved higher, increasing by 8 cents or an annualized pace of 2.6 percent, while the average work week edged up to 34.5 hours.

Economists had been looking for an increase of 180,000 and a decline of the unemployment rate to 4.8 percent.

Professional and business services led the way with 70,000 new positions, while health care rose 43,000 and Wall Street jobs increased by 18,000. Leisure and hospitality continued to be a big contributor to job growth, adding 45,000. Government added 38,000 to the total.

Job losses came in mining and logging (-7,000), while construction added 14,000 and manufacturing grew by 9,000.

Jobs were evenly distributed, with full-time positions growing by 306,000 and part-time adding 150,000.

Previous months' tallies also gained due to revisions. May's anemic 11,000 gain got bumped up to 24,000 while the strong June number moved from 287,000 to 292,000.

The report came as recent indicators have raised fresh concerns about the pace of growth. Gross domestic product gains averaged just 1 percent in the first half of the year.

The stock market rose on the strong report and increased the chance for the Federal Reserve to hike interest rates. The probability for a September move rose from 12 percent to 18 percent while a hike before the end of the year moved from 34.4 percent to 46.5 percent.

Jobless rates fell across multiple demographic groups, with teenagers dropping from 16 percent to 15.4 percent and Hispanics declining from 5.8 percent to 5.4 percent.

This larger-than-expected employment gain in July could boost the recovery in prices for luxury U.S. homes. Stock market volatility caused a drop in luxury values in the first quarter of this year, but prices recovered slightly in the second quarter, rising 0.8 percent annually, according to Redfin, a real estate brokerage. Redfin defines a home as luxury if it is among the top 5 percent most-expensive homes sold in each city.

The second quarter did not start very well for stocks and they plunged after the Brexit vote in June, but the market has rebounded quite significantly since then. Friday's employment beat could boost the market even more, adding fuel to the recovery in luxury home prices.

The luxury end of the housing market is much more sensitive to stock market moves, as higher net worth homebuyers are more invested in equities than the general population.

Luxury home prices fell 11 percent in San Francisco and 4 percent in Bellevue, Washington, where wealth is more closely tied to tech stocks. Luxury prices in the Hamptons, New York's swankiest vacation venue fell 2.3 percent in the second quarter annually, but sales rose by more than 20 percent.

The improving jobs picture, however, makes it more likely that the Federal Reserve will raise interest rates, which, while not directly correlated, could push mortgage rates higher. That is a negative for most homebuyers, but not necessarily for those on the highest end.

Politics will also play into luxury prices as the presidential election coincides with the housing market shift to the slower season this fall. Luxury prices in Washington, D.C., have been softening, and were down 4 percent in the second quarter, according to Redfin. Politics overseas, however, may be adding to prices in markets favored by foreign investors. Miami Beach, Florida, luxury prices soared nearly 22 percent in the quarter.

Projects from this area

10 Harbor, USA, Hollywood

10 Harbor will offer 10 exclusive luxury 3 bedroom townhome residences planned by Sunset Harbor Residences.

Each unit will be delivered with flooring throughout. Each residence will feature it’s own private boat/yacht slip, private elevator, and private 2 car garage as well as 3 full baths, a powder room for guests, wood cabinetry in the kitchens by Mia Cucina with high-end gas ranges and appliances, floor to ceiling high impact glass windows, oversized private terraces with private hot tub, summer kitchen, and sweeping views of the Intracoastal Waterway and Hollywood Beach.


10 Harbor is located on the Intracoastal Waterway in the fast-growing neighborhood of Hollywood. The property is in walking distance from Hollywood Beach overlooking West Lake Park and just 15 minutes from the Fort Lauderdale-Hollywood International Airport. It is also in close proximity to local attractions like Gulfstream Park, South Florida's premier race track, and Aventura Mall, one of Miami’s top destinations for high-end shopping and dining.


10 units; 3-stories plus garage. Each unit ranging in sizes from 2,721 sq ft to 2,805 sq ft. Ceiling heights up to 11’-3” in some areas.


Private boat/yacht slip approximately up to 60' in length and 19' beam.


Construction should be underway in the second quarter of 2016 with completion slated for Fall 2017.


Pre-construction finished unit prices starting from $1.419 million residences.

(Prices are subject to change without notice)


Nestled between Miami and Ft. Lauderdale, the city of Hollywood is known for its beautiful stretch of beaches and excellent outdoor attractions. From oceanfront hotels to the newly opened Margaritaville Resort, owned by Jimmy Buffet, visitors will find no shortage of accommodations for a weekend getaway or long stay. Experience unique shopping, beachfront restaurants and bars, and a host of activities from sightseeing to live music along

Hollywood's Boardwalk. Hollywood is also seeing a rapidly evolving arts and culture scene, which includes grand murals, art installments, galleries, and the booming Arts Park at Young Circle, which is becoming one of South Florida's premier weekend hot spots. The expansion of the area, from strategic urban development to walkable streets, is catching the attention of locals and out of out-of-towners alike. Those looking for delicious food and a vibrant nightlife will discover much to do in Downtown Hollywood, with its various options perfect for any budget and preference. To make it even easier to take in everything the city has to offer, trolley services are available to transport guests to and from Hollywood Beach to Downtown Hollywood.

read more

The Manhattan, USA

The Project:

Classic building on the following address: 351 East 82nd  . including 26 units for rent, with high  occupancy.

The project’s condition is required different levels of renovation.

The average rent price in this project is: $1830, comparing to the average rent price in the buildings in the neighborhood: $2590  (for 1 bedroom flat).

The location:

The Upper East Side is located between the 59th St. and  96th St. and is east to Central Park.

Well established classic neighborhood with a wealthy population (including families such as: Kennedy, Roosevelt, Rockefeller and others).

Culture and Leisure: The 5th Avenue, Central Park, The Museums area: Metropolitan, Guggenheim and many more.

Education and Health: The famous University and Hospital: Mount Sinai.

The classic buildings, the wide pavements and the relative quite area attract high quality tenants.

The average household annual income is: $147,000- among the highest in the city.

The Strategy:

1.       Each apartment will become vacant once contract is terminated.

2.       Cosmetic and Gut renovation of all units, bringing them to high end market standards.

3.       Completion of the upgrading process within 24 months.

4.       Realization of the property at updated value, and creating substantial capital gain.

read more

Click here to see all the projects from this area.