Are home prices in NoVA going to crash? (Burke: incomes, maintenance)

[DenaliGMC]

Ok maybe crash is a strong word but are they going to come down? Considering how in the upcoming decade the Fed Gov is going to be slashing spending.

Thoughts?

[Caladium]

If either of those things ever actually did happen, it wouldn't last for long.

[saganista]

"Slashing" might a strong word too, since the only driection that federal spending is actually going to go in is up.

[khuntrevor]

It will actually strengthen the economy in the long run. Housing prices will never drop as fast as the value of a GM SUV, that's for sure.

[CAVA1990]

Not really. If the government cuts spending, it will likely be entitlement programs and state grants that flow out to the rest of the country. Doubtful there'll be many empty desks at the Pentagon or at most agency headquarters location where many people around here work. Two Americas. This area has such a large number of highly skilled and educated people it will continue to attract companies looking for the best and brightest. Also, young people growing up here want to stay in the area. Home prices are a function of incomes and I don't see those declining much, particularly in the inner suburbs and DC.

[khuntrevor]

and what exactly is it that these highly skilled/educated people produce? I can go all year without anything from the DC area.

[CAVA1990]

Originally Posted by khuntrevor

and what exactly is it that these highly skilled/educated people produce? I can go all year without anything from the DC area.

What you perceive you get from it is immaterial to whether it's going to keep going. However, there are plenty of folks who do get something from it. You're not getting much more less than you did five years ago when you weren't complaining about it.

[Caladium]

Originally Posted by CAVA1990

What you perceive you get from it is immaterial to whether it's going to keep going.

You got that right.

[car54]

Originally Posted by khuntrevor

and what exactly is it that these highly skilled/educated people produce? I can go all year without anything from the DC area.

With many functions of government, you'd only notice it when it's gone.

I hang out at a little known county yard in Burke. Almost nobody knows these guys exist, and if they found out about them...most would probably urge getting rid of 'em...you know, smaller government and all that. But the taxpayers would know it right away if those guys were NOT there. They are Line Maintenance and they are why your backyard is not underwater every time it rains.

[Caladium]

Originally Posted by car54

With many functions of government, you'd only notice it when it's gone.

I hang out at a little known county yard in Burke. Almost nobody knows these guys exist, and if they found out about them...most would probably urge getting rid of 'em...you know, smaller government and all that. But the taxpayers would know it right away if those guys were NOT there. They are Line Maintenance and they are why your backyard is not underwater every time it rains.

Great point. I remember moving to a city that decided to cut the budget for snowplows and fire the snowplow drivers. Boy did they learn the hard way the next winter that it was a bad decision.