Love, Money + Real Estate #27
Jobs and Real Estate. The Cost of Love. And, Channeling Cats vs. Herding Them?
This week, the employment numbers blew everyone away. Here’s how MBA SVP and Chief Economist Mike Fratantoni put it:
The job market in January was stronger than expected along every dimension: job growth was faster, December’s strong job growth was revised higher, and overall gains were more balanced, including more sectors of the economy than had been seen in prior months. Additionally, wage growth re-accelerated to 4.5% on an annual basis, and the unemployment rate stayed quite low for the third month in a row at 3.7%.
This hardly seems like an economy that’s about to fall into recession. To the contrary, this week the market seemed like it heard the really good news, with all three indicies touching new highs during intraday trading:
Tech stock heavy NASDAQ closed at 15,628.95, +267.31 (+1.74%)
The Dow Jones closed at 38,654.42, +134.58 (+0.35%).
The S&P 500 closed at 4,958.61, +52.42 (+1.07%)
Where are the job gains coming from?
Unfortunately, construction only added 11,000 new jobs in January. While you could blame the weather, there’s aren’t enough people entering the sector. And, it’s one reason why we’re still not building enough to make a significant dent in the millions of new homes needed in this country. We’re still short anywhere from 4 million to 6 million homes, according to a variety of sources.
Right now, new homes account for about one-third of all homes being sold, according to Redfin. The real estate company says 31.8% of all homes sold are new construction, just shy of the all-time record set last January, when 31.9% of all homes sold were new construction.
Unfortunately, this mostly this has to do with few homeowners putting their houses up for sale. Not a huge jump in the number of new homes being built. We’re still way behind on those, too.
Another piece of good news about the economy: Mortgage interest rates are hovering at about 6.5%. That’s far lower than the nearly 8% we saw last year. Lower interest rates directly impact affordability. Seems to me that most homeowners are waiting for them to come down even more (I keep hearing 5% for a 30-year fixed is the magic number) before deciding to list their properties.
After all, why pay more for less house and carrying a bigger loan at a higher interest rate? Doesn’t make financial sense. And, most homeowners are smart enough to count every nickel.
As interest rates fall, Redfin says more people are looking at homes for sale. But that hasn’t translated (yet) into offers.
Maybe home buyers don’t really like what they’re seeing…
The latest from ThinkGlink and Best Money Moves
Some hot reads from ThinkGlink.com:
How to protect your house and assets from cyber fraud - Must read for anyone who doesn’t have their stuff locked down with 2FA (and even if you do)
And, from Best Money Moves:
The cost of love: Valentine’s Day 2024
Are you ready for another holiday? Has your bank account recovered from Christmas yet?
According to Lending Tree, consumers in relationships will spend an average of $180 on the big V-day. Most of that will be on gifts or perhaps food. And, about 33% will take on credit card debt, ostensibly so they don’t disappoint whomever they’re trying to impress.
Some other thoughts from the Lending Tree Valentine’s day survey:
Love was made for me and you — and the 82% of coupled Americans who plan to purchase gifts for their significant others this Valentine’s Day. Men expect to spend an average of $248 on their significant others, while women expect to spend only $115. Meanwhile, those in relationships expect their partners to spend an average of $166 on them this year, which rises to $255 among millennials.
Some have lost their love for the heart-shaped holiday. Thirty-seven percent (37%) of Americans in relationships believe that spending more than they can afford on Valentine’s Day is worth it to show their partner they care. That’s especially true among Gen-Zers (53%) and millennials (51%). However, that mentality doesn’t hold true for all: 45% of Americans say they’ve skipped the holiday to save money, and over half (52%) say they’d avoid it altogether if they could.
It’s easy to overspend on your special someone, but the debt that could stick around might take your breath away. A third (33%) of those in relationships say they may take on Valentine’s Day credit card debt this year. Among this group, 48% wouldn’t tell their significant other. Men are more likely to hide their gift-giving debt than women (50% versus 44%). Of those potentially taking on debt this year, 64% plan to pay it off within three months.
Throw away the cheesy card — experiences are the way to your loved one’s heart. Experiential gifts like travel or a dinner out are the most wanted gifts for those in relationships, and 24% of significant others plan on gifting just that. Women prefer a bouquet of flowers (31%), while Gen Zers prefer candy or chocolate to mark the special occasion (35%).
What, if anything, are you doing to mark the holiday?
Well, if you’re in love with a cat lover, consider this:
Something fun: Channeling cats
Are you a cat lover? Emmy-winning producer and comedy writer Wendy Miller has reinvented herself. Again. In addition to her ongoing TV work, she started a new company, Card to Believe. This week, she launched her latest product on Kickstarter: Ask Your Cat Cards.
I’ve known Wendy for more than 30 years, ever since we took a screenwriting class together. She’s wildly talented and hilariously funny. And, her ability to reinvent herself offers great lessons for anyone struggling to figure out their next step.
I spent some time with Wendy this week. If you’ve been stuck trying to figure it out (whatever “it” means to you), Wendy has some amazing words of advice. Plus, if you’ve been thinking about doing your own Kickstarter campaign, she has some great ideas about how to make it successful.
ILYCE: Let’s start at the top. How did you go from being an Emmy-winning producer and comedy writer to creating cat cards?
WENDY: I’ve been fortunate to have a really fun and rewarding career in television. In 2020, I was in my second year of writing a daily talk/lifestyle show for the Hallmark channel. Then the pandemic hit, and our show was shut down. Everyone’s show was shut down. After a year or so, some shows slowly went back into production but ours was permanently canceled. The studios knew that there was a big writers and actors strike looming, so many of them drastically cut the number of projects put into production. As a result, there was absolutely no television work out there. So, I had to figure out what else I could do to pay my mortgage.
ILYCE: But transitioning from TV to making funny cat cards seems like a stretch. How did it happen?
WENDY: During the pandemic, a friend had given me a deck of Oracle cards, which are special cards that people often use for guidance. I love the idea of cards that give people answers, but as a comedy writer I would have preferred cards that were a little more…irreverent. I couldn’t find what I wanted on the market, so I decided to create my own. Since cats are clearly the smartest beings on the planet and everyone loves them, I decided to create an Oracle deck offering answers in the voice of a judgmental cat. Over the next year, I wrote and refined the cards. I taught myself how to design and manufacture cards and had several prototype decks made. I took the cards to CatCon, a huge pop-culture conference dedicated to all things cat. I tested my Ask Your Cat cards on the cat lovers there and they were a massive hit. People tried to buy them out of my hands. I knew I was on to something special.
ILYCE: When (and how) did you decide to turn this into your new career?
WENDY: Even without a pandemic and huge labor strikes, the TV business is extremely difficult, especially for women of a certain age. I always knew my TV career would eventually leave me for a younger woman, so I was searching for additional revenue streams to create passive income. Once I saw how people absolutely loved these cards it really seemed as if this was something I should pursue as a potential business. Especially since they were so unique and fun. I formed an LLC, opened up an online store and now I’m creating and selling unique oracle decks all the time.
ILYCE: But there’s another aspect to these cards that really makes them really special: It’s the give-back you built into every single purchase.
WENDY: I’m a cancer survivor. And, I feel incredibly lucky to be one. And, as a cancer survivor, it’s always important for me to give back. Because there are so many amazing organizations out there dedicated to helping cats and kittens, I decided Ask Your Cat cards were the perfect tool to help support animal welfare charities. A portion of every sale will be donated to nonprofits that support cat welfare. That’s when this company really felt aligned to me. I created an entirely new market segment that makes people laugh and maybe even gives them some guidance. At the same time, I’ve created a great way to support the amazing people and organizations that have dedicated themselves to helping others. Different nonprofits are now reaching out to me to talk about creating special cards that will support their organizations. In a million years I never would have predicted this.
ILYCE: What’s next? What about all the dog-lovers on my list?
WENDY: Haha - well, I’ve got something really cool up my sleeve for all the dog-lovers out there. In the meantime, Ask Your Cat cards are currently available on Kickstarter. I’m thrilled by all of the attention an accolades they’ve received. I have several new decks currently in development and I hope to launch them later this year. A share of the profits from each deck will support associated charities. When I was a kid, I dreamed of working in television and that dream came true. Now I’ve completely reinvented myself. I’m running my own company, creating really funny decks that entertain people while also making a difference in the world. I’m living a whole new dream.
Ask Your Cat cards are available on Kickstarter now. It’s a great Valentine’s Day gift for the cat-lover on your list. Find out more: https://www.kickstarter.com/projects/cardtobelieve/ask-your-cat-deck
Travels with Ilyce
Some of you have noticed that I’m starting a new blog within Love, Money + Real Estate. It’s a thank-you for those of you who decide to financially support what we’re doing here.
Essentially, I’m writing about my travels around the world and what I’m noticing about how people live and work in a changing world. I also provide insights about where I’m staying, what we’re eating, and what you might want to do if you get to this part of the world.
This week, I’m writing another installment of my recent trip to Peru. We did a ton of hiking at elevation (the hotel where we stayed was at 9,500 feet and much of the time we were at 12,500 to 15,000 feet), but also took some time to absorb Incan culture and archeological sites.
These travelogs will be available only to our paying subscribers, while the regular Love, Money + Real Estate newsletter will stay available to everyone. If you’d like to subscribe, here’s the link.
Have a great week and I’ll type to you again, soon.
Warmly,
Health care would be a great career choice for a young person looking for a career. The bad point is that folks in the field right now are understaffed, overworked and I never see them. The job always promises more help and great pay. What is the point if you never live? Is the cost also worth it? What is the total cost now to become a doctor, nurse, or lawyer? Make the family proud dream job? Maybe not anymore.
Los Angeles is so difficult to buy a home. Prices have come down a bit but not enough for the average income.
Great for health care and social assistance, but the leisure/hospitality sector (hotels) is still far short of employees needed, especially overnight, not to mention (not shown) the restaurant sector. All you have to do is go to a restaurant, and you can see that.