The Sequester and Effect on COS Bases (house prices, buyer)

[proveick]

Local home sales, prices continue to rise in February | sales, local, prices - Colorado Springs Gazette, CO

[proveick]

Oops, from Trulia.
"The median sales price for homes in ZIP code 80911 for Dec 12 to Feb 13 was $168,000. This represents an increase of 1.8%, or $3,000, compared to the prior quarter and an increase of 20% compared to the prior year. Sales prices have appreciated 7.7% over the last 5 years in 80911, Colorado Springs. The median sales price of $168,000 for 80911 is 10.16% lower than the median sales price for Colorado Springs CO. Average listing price for homes on Trulia in ZIP code 80911 was $158,116 for the week ending Mar 06, which represents a decline of 0.6%, or $987 compared to the prior week and a decline of 1.6%, or $2,595, compared to the week ending Feb 13. Average price per square foot for homes in 80911 was $118 in the most recent quarter, which is 10.61% lower than the average price per square foot for homes in Colorado Springs."

[Terytee]

I'm confused about the housing market here in town. I guess it can vary widely from zip code to zip code?

According to Zillow.com, the value of my home in 80922 (Stetson Hills), has been declining steadily since January.

[Seeker5in1]

So there we have it. Some say house prices are up, some say down. Who to believe? In any case, the shoe has not dropped on sequester yet, and we won't know much until it does.

[Josseppie]

Originally Posted by Seeker5in1

So there we have it. Some say house prices are up, some say down. Who to believe? In any case, the shoe has not dropped on sequester yet, and we won't know much until it does.

This is true. With 46% of the economy related to the military or defense contractors I cant see how it won't have a negative impact on the economy.

[Carrera32]

Seeker - The sequester "shoe" has already dropped. In COS, ISS Corp, a military IT contractor, has just laid off 40 employees due to delays (i.e., sequestration) in DoD contract awards (check story in Gazette on-line). Lockheed, a huge defense contractor, is offering buyouts to 750 CO employees, as part of a larger effort to trim its payroll by thousands of employees worldwide due to actual and expected losses in revenue (Gazette, on-line). The Air Force Academy is delaying millions in maintenance and infrastructure construction projects (see today's Gazette for the story). I'm assuming AFA projects would have gone to local private contractors. Jake Jabs just announced that plans to build a second American Furniture Warehouse on Powers Blvd are on hold until he "...sees how DoD cuts affect the Pikes Peak region." (today's Gazette). What's happening is a gradual slowdown: Contracts and contract awards are delayed or cancelled altogether; vacancies are not being filled or are also being delayed, furloughs are only being delayed due to legal notice requirements (look for them to start in April; my understanding is DoD employees will be furloughed for a day each week, or to put it another way, take a 20% pay cut), and the ripple effect will certainly impact local economies like COS that are heavily dependent on DoD and other Federal spending (including contracts). It stands to reason that if you are dependent, either directly (i.e., pay check or contract), or indirectly (local business owner or employee dependent on military or Fed employee or contractors for your business), you're pulling back, delaying investments (business, home, car, braces for the kids, etc.) until the sequestration issue is fully resolved. If it continues, expect the pull back to continue as well, with the resultant impact on the local economy.

[ryanek9freak]

I know firsthand the effect, even before the sequester, my former employer at fort Carson knew of the impending cuts and laid off over 400 people.

[Seeker5in1]

Does anyone know if any units with the 4th ID may be de-activating? But more important than that, what effect will it all have on house prices?!

[otowi]

Haven't heard, but don't panic - life will go on regardless.

[ryanek9freak]

No units of the 4th Id have any plans to deactivate.