The U.S. added a total of 255,000 to the total nonfarm payroll positions in July, which was more than expected. To that end, CNBC’s Diana Olick reports that the strong jobs numbers could boost the recovery in prices for luxury U.S. homes.
Stocks plunged after the Brexit vote in June, but have rebounded well since then. Last week’s job report could add to that rebound. The luxury end of the housing market is much more sensitive to stock market moves, as higher net worth home buyers are more invested in equities than the general population. Of course, as with everything in real estate, the sensitivity is local.
"For the most part, the housing market can stomach large swings in the stock market," said Redfin's chief economist, Nela Richardson. "But there are markets, like Silicon Valley, that become queasy when the equity market is this volatile. In these areas, home buyers' wealth and down payments are more closely tied to stocks. In addition, foreign buyers who normally flock to these cities are also highly sensitive to global volatility."