It certainly seems like August is the one month that spoils the party. At least as economic reporting is concerned. According to the Bureau of Labor Statistics, there were only 151,000 new jobs Real Estate Investingcreated, with just 126,000 of those in the private sector, the remaining were government jobs. This has come off two relatively strong months of employment. In June there 292,000 new jobs and July 275,000. While a dip was partially expected, analysts were looking for something closer to 180,000 yet remarkably similar to August of 2015 when there were 150,000 newly created jobs. And as we’ve witnessed for quite some time, bad news is good news for stocks as the Dow opened this morning up more than 100 points.

 

This data tells the Fed it’s not time to raise rates and in fact we’re once again looking at sometime early next year for a rate increase. However, if job gains are still on the lukewarm side we may be looking at near zero rates well into next year. What this means for real estate investors is the cost of funds is still remarkably low and appear to be heading into 2017. For those in the market for single family rentals, prices in most metropolitan areas are still on the rise and rental rates right along with them.

As the summer winds down and vacations are in the rear view mirror and students are back in class, the third quarter is expected to hit a 3.2 percent annual GDP rate. Yet if the economy did in fact sputter in the final month of Q3 it may not be very likely we’ll come close to 3.2. That estimate seems a bit rosy coming off a Q2 GDP number of 1.1 percent annualized growth. If we do in fact see another sluggish GDP report released next month, it might be Groundhog Day all over again.