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Market Snapshot: Week of Dec. 5

December 05, 2016
Anouka Maria Perkins
Realtor Associate

Knowledge is power. And your time is money. So, naturally, we want you to have more of each. In our new weekly series, the Cervera Newsroom team organizes everything the modern real estate professional needs to know this week: from global economies and foreign affairs to local trends and expert real estate insight backed by 47-years of experience in South Florida. We've got it here for you.    

November 2016 was a real "November to Remeber." Donald Trump won the presidential election, Republicans took control of Senate and House, the four major averages all hit record highs, Gold saw its worst month since 2013, financials had the best month since 2011, treasury yields rallied to multi-year highs, and oil increased over 9% on the last trading day in November. December started off on a high-note as Miami's Little River was declared Zika-free and Art Basel Miami Beach 2016 drew over 75,000 thousand

November 2016 was a real "November to Remember." Donald Trump won the presidential election, Republicans took control of Senate and House, the four major averages all hit record highs, Gold saw its worst month since 2013, financials had the best month since 2011, treasury yields rallied to multi-year highs, and oil increased over 9% on the last trading day in November. December started off on a high-note as Miami's Little River was declared Zika-free and Art Basel Miami Beach 2016 drew over 75,000 attendees. Sadly, football fans of Miami's hometown team ended their week on a low note as the Baltimore Ravens snapped the Dolphins' six-game win streak.

All this and more in this week's Market Snapshot, powered by the Cervera Newsroom.

U.S. ECONOMY

  Market Snapshot: Week of November 28 – December 2

  • Dow Jones: 19,170.42 (+0.095)
  • S&P 500:  2,191.95 (-0.9668)
  • Nasdaq:  5,255.65 (+7.918)

  Stock Market Winners:

  • On Wednesday OPEC agreed to its first production cut in 8 years. WTI Crude rose 9.3% during the trading day as a result.
  • Southwestern Energy shares rose 8.9% Thursday after BMO Capital Markets announced they believe the company, which drills natural gas, is performing better than the majority of its peers.
  • Similarly, shares of Devon Energy, an independent natural gas producer focused on onshore exploration and production, soared 13.5% on Wednesday in morning trade. Other companies such as Marathon Oil and Transocean jumped over 10.5% on the same day.

  Stock Market Losers:

  • Shares of well-known dollar store, Dollar General, fell 5.5% on Thursday after surprising weak quarterly reports were announced.
  • Starbuck’s shares fell 3% in after hours trading on Thursday after the company’s CEO, Howard Schultz, surprised consumers with the announcement he would be stepping down to become Executive Chairman and focus on the firm’s new ultra-premium retail formats.

  Other Market News:

  • The yield on the 10 year US Treasury note soared to 2.44% Thursday, the highest level since 2015, which put upward pressure on residential mortgage interest rates.
  • The US trade deficit for October showed a trade balance (deficit) of $62 billion, $3 billion more than expected and the 5th largest of the year.  
  • The Real Deal reports that while some are hoping that with the passing of Fidel Castro opportunities for U.S. investment in Cuba will increase, analysts suggest caution, especially if President-Elect Trump reverses the recent change in policy by the current administration.

LOCAL

  • Chinese buyers of Miami real estate increased 1% YOY, according to Miami Association of Realtors President Teresa Kinney. The 2016 International Homebuyers report will be released January 2017.
  • Florida Gov. Rick Scott says the state’s Department of Health has cleared Miami’s Little River area of local Zika transmission, according to the Associated Press. Scott said in a statement last Friday that the timing is great news as visitors are pouring into Miami for the annual Art Basel festival, which features poolside parties, blocks of art fairs and outdoor red carpet events.
  • Colombia rings in as the top foreign country searching for South Florida real estate for the 10th consecutive month, according to new data from the Miami Association of Realtors. South Florida also remains the most searched market in the US for international buyers.
  • Keep a look out for Canada. The country placed second for the most searches for Miami property. To put this into perspective, America’s northern neighbor placed 6th in the same ranking just last year.
  • Hoping that people from all over the world are coming for the art but staying for our stunning city, brokers and developers in Miami took full advantage of Art Basel’s opulent crowd this past week. From decadent boat lunches to helicopter rides, Miami brokers pulled out all the stops.
  • The Miami Dolphins’ six-game winning streak came to a crashing halt on Sunday on the heels of a devastating loss to the Baltimore Ravens. The loss puts instant doubt in the minds of “Dolfans,” wrote Miami Herald’s Barry Jackson, fearing Sunday may be a sign of another Dolphins December debacle. Since 2009, the Dolphins are 13-18 in December and have had a winning record in just one of those seven years — 3-2 in 2013 — and even that year ended miserably with consecutive losses to Buffalo and the Jets, foiling a potential playoff berth.

FOREIGN AFFAIRS

  • The Italy referendum vote was held on Sunday, with a resounding “No” vote. As a result, Italian Prime Minister Matteo Renzi resigned moments later, making him the 64th Prime Minister in Europe’s third largest economy in just 70 years. The referendum question revolved around the idea of changing the current decentralized government to a more centralized approach. A yes vote was a vote for a change to centralized power and a no vote was a vote to keep the status quo. Being that the no vote prevailed, some analysts predict this increases the possibility of Italy withdrawing from the European Union sometime in the future. This could result in the increased risk of currency devaluation and the increased possibility of high net worth individuals investing in US income producing commercial properties as well as luxury residential real estate to protect themselves from a fall of the Euro.
  • The Euro continues its decline relative to the U.S. dollar with some experts forecasting parity in 2017, which would again impact the likelihood of increased European investment in income producing commercial real estate and luxury residential real estate.
  • Bloomberg reports increased optimism for a rise in US equities due to President-elect Trump’s policy of lowering taxes and regulations. Big banks like Goldman and JP Morgan Chase believe that Trump’s policies at large will be “pro-growth”, even while uncertainty about the specifics of these policies remains high.  

TRENDING

 

QUOTE OF THE WEEK

 “Your imagination is your preview to life’s coming attractions.” - Albert Einstein

 

Anouka Maria is a real estate professional  with Cervera Real Estate. Anouka specializes in residential condominiums and single-family homes across a wide range of budgets. As a member of the team at The Elmir Group, she also serves as the team’s Financial Manager.

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All the opinions expressed by Ms. Perkins in this newsletter are solely her opinions. You should not treat any opinion expressed by her as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of her opinion.

 

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