Manhattan Apartment Rents Near Peak With September Surge

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Manhattan apartment rents surged in September, coming within 2.1 percent of the peak, as improving employment boosted competition among tenants.The median monthly rent jumped to $3,195, up 10 percent from a year earlier and 3.2 percent from August, according to a report today by appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate. The number of new leases signed last month jumped 55 percent from a year earlier to 2,535, as renters facing sharp renewal increases moved out in search of better deals, said Jonathan Miller, president of New York-based Miller Samuel.“This is not a fluke,” he said. “This is where the die has been cast for the next year or two years.”Improving employment in the city has increased demand for leasing, putting monthly rents on course to surpass the 2006 peak of $3,265 in the first quarter of 2013, according to Miller. Newly hired potential tenants are competing for housing in a market already crowded with would-be homebuyers who are lingering in their apartments because they can’t get a mortgage, he said. New York City added 77,400 jobs in the 12 months through August, according to the state Labor Department.Available rental apartments stayed on the market an average of 39 days this year through September, the shortest time in two decades of record keeping, according to Miller.Carol Incarnacao-Schirm and her husband, Derick, were among those who took jobs in the area this year -- she as a lawyer in Manhattan and he as an associate at trading firm Knight Capital Group Inc. (KCG) in Jersey City, New Jersey -- requiring a move from Fort Lauderdale, Florida.

China Cabinet

Knowing they couldn’t replicate their previous $1,700-a- month, two-bedroom unit with use of a pool near the beach, their expectations for New York were more modest: a one-bedroom for about $2,500 that could fit a china cabinet for her wedding crystal and an L-shaped couch, Carol Incarnacao-Schirm said.The bigger challenge was speed. The couple, armed with a tape measure, would often arrive to view an apartment only to find out it was no longer available, she said. Sometimes an available unit they were considering was leased to someone else just after they left.“Not more than three to four hours after seeing the place, we’d get a call saying its not there anymore,” said Incarnacao- Schirm, 27, an international-business attorney.Working through John Brandon, a Citi Habitats broker, the couple found a walk-up unit on West 76th Street between Columbus and Amsterdam avenues. The one-bedroom apartment, with loft storage space, was listed for $2,800, which they agreed to pay, putting down a deposit immediately in order to avoid it being shown at an open house the next day. They moved in last month.http://www.bloomberg.com/news/2012-10-11/manhattan-apartment-rents-near-peak-with-september-surge.html

Jobless Claims in U.S. Fall to Four-Year Low

Fewer Americans than forecast filed first-time claims for unemployment benefits last week, which may reflect difficulty adjusting the data for seasonal swings at the start of a new quarter.Enlarge imageBrick masonry students train at the San Diego Job Corps Center in San Diego, California. Photographer: Sam Hodgson/Bloomberg
3:35Oct. 11 (Bloomberg) -- Fewer Americans than forecast filed first-time claims for unemployment benefits last week, which may reflect difficulty adjusting the data for seasonal swings at the start of a new quarter. Applications for jobless benefits dropped 30,000 to 339,000 in the week ended Oct. 6, the fewest since February 2008, Labor Department figures showed today. Betty Liu, Dominic Chu and Michael McKee report on Bloomberg Television's "In the Loop." (Source: Bloomberg)
5:57Oct. 11 (Bloomberg) -- Gary Shilling, president of A. Gary Shilling & Co., talks about U.S. labor, student loan debt and global economies. He speaks with Tom Keene and Scarlet Fu on Bloomberg Television's "Surveillance." (Source: Bloomberg)
5:13Oct. 11 (Bloomberg) -- Pete Selleck, chairman and president of of Michelin North America, talks about the company's growth and manufacturing model. He speaks with Tom Keene and Scarlet Fu on Bloomberg Television's "Surveillance." (Source: Bloomberg)Applications for jobless benefits dropped 30,000 to 339,000 in the week ended Oct. 6, the fewest since February 2008, Labor Department figures showed today. Economists forecast 370,000 claims, according to the median estimate in a Bloomberg survey. One state accounted for most of the plunge in claims, a Labor Department spokesman said as the data were issued to the press.Waning dismissals may help clear the way for bigger hiring gains with any improvement in demand. At the same time, the global economy cooling and a lack of clarity on U.S. fiscal policy are hurdles for faster gains in employment.The report “is consistent with a labor market that is gradually getting better,” said Guy Berger, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut, who had predicted a decline in claims. “Layoffs are at a low level and don’t seem to be going anywhere. Hiring is still very muted.”Estimates for first-time claims ranged from 355,000 to 377,000 in the Bloomberg survey of 49 economists. The Labor Department revised the number of applications for the prior week up to 369,000 from a previously estimated 367,000.

Stock Futures

Stock futures extended gains after the report. The contract on the Standard & Poor’s 500 Index maturing in December rose 0.5 percent to 1,433.50 at 8:37 a.m. in New York. The yield on the 10-year Treasury note climbed to 1.72 percent from 1.67 percent late yesterday.Unadjusted claims typically surge at the start of a quarter as people receiving benefits reapply in order for the government to recertify their applications, the Labor Department spokesman said. The year’s increase was smaller than projected, because one large state showed a drop rather than an increase, the spokesman said. The breakdown by state will show up in next week’s report.The U.S. trade deficit widened in August as exports dropped, a report from the Commerce Department also showed today. The gap grew 4.1 percent to $44.2 billion from $42.5 billion in July.The four-week moving average for jobless claims, a less- volatile measure, fell to 364,000 from 375,500.

Jobless Benefits

http://www.bloomberg.com/news/2012-10-11/jobless-claims-in-u-s-fall-to-four-year-low-as-quarter-starts.html
Pulled from StockTwits

Market Warning Signs

• Posted by Joe Fahmy
 
• on October 9th, 2012

I always like to keep an objective and level-headed approach to the market. I look at the positive and negative signs and decide how much capital to commit based on the information given. Today, I moved to 100% cash for the following reasons:1) The buildup of distribution days on the major indexes, showing that institutions are selling stock.2) The breakdown of many of my stocks. I was in 8-12 quality positions recently and got stopped out of all of them. Some didn’t hit my stops, but I got out to be extra defensive.3) The Nasdaq Composite breaking below its 50-day moving average.4) The price action in $AAPL (THE MARKET LEADER) is making me cautious as it continues to see heavy selling.The positives include 1) The never-ending QE that continues to support this market 2) Stocks are the best game in town because other investment vehicles provide very little return and 3) Traditionally, the 4th quarter is a good time to be in the market.http://joefahmy.com/2012/10/09/market-warning-signs/This is also The Queenbee's position (highlighted in yellow by me) if you hadn't seen my recent comments. QB