Fiscal Cliff scaring home buyers in Northern VA? (Washington: real estate market, 2013)

[Future Home Seller]

Most of you have likely been reading about the upcoming Fiscal Cliff, with it's resulting deep cuts in government spending and tax increases. For years everyone said we needed to make deep cuts in government spending and raise some taxes to make up for our massive budget deficits, but actually doing so will destroy the Washington DC area economy.

Even if at the last minute Congress does something and puts off the cliff for another few months, the trend is apparent- the Federal Government can't afford to spend as much money has it has in the past.

If you want to sell a home in Northern VA the real estate market has been good the last six months but my real estate agent says 2013 is not going to be as good. About half of the people in Northern VA either work for a government contractor or the Federal Government and the rest the people would be impacted if the government related jobs went away. A ripple effect.

Have you thought about selling your house and getting out while the getting good (before the major cuts start), or are afraid to buy a house here because the real estate prices are going to start dropping once government spending starts to finally drop?

This is still really a one industry town. I suspect that start next year the home prices in DC are going to drop once they finally determine that Federal Spending has to drop and fall significantly. What do you think?

[Caladium]

We're retiring and considering a move next fall. So far have no fear putting our house on the market. We'll see what happens.

[CaliTerp07]

Not worried. No sense in worrying. We didn't buy a house as a short term investment, we bought it to have a place to live.

[Future Home Seller]

Originally Posted by CaliTerp07

Not worried. No sense in worrying. We didn't buy a house as a short term investment, we bought it to have a place to live.

I know quite a few people who said that when they bought their homes in 2006 just at the peak of the market and now are upside down.

[car54]

"Fiscal cliff" is nothing but political BS.

Nothing of signifcance will be done about our fiscal problems until the TOTAL collapse of the economy occurs.

[Back to NE]

Originally Posted by Future Home Seller

Most of you have likely been reading about the upcoming Fiscal Cliff, with it's resulting deep cuts in government spending and tax increases. For years everyone said we needed to make deep cuts in government spending and raise some taxes to make up for our massive budget deficits, but actually doing so will destroy the Washington DC area economy.

Even if at the last minute Congress does something and puts off the cliff for another few months, the trend is apparent- the Federal Government can't afford to spend as much money has it has in the past.

If you want to sell a home in Northern VA the real estate market has been good the last six months but my real estate agent says 2013 is not going to be as good. About half of the people in Northern VA either work for a government contractor or the Federal Government and the rest the people would be impacted if the government related jobs went away. A ripple effect.

Have you thought about selling your house and getting out while the getting good (before the major cuts start), or are afraid to buy a house here because the real estate prices are going to start dropping once government spending starts to finally drop?

This is still really a one industry town. I suspect that start next year the home prices in DC are going to drop once they finally determine that Federal Spending has to drop and fall significantly. What do you think?

Gosh, if Northern VA is heading towards a "fiscal cliff" I can't imagine what'll happen to the rest of the country. This post is loaded with hyperbole. Even if Romney were to win, Dems in Congress wouldn't let him gut the gov't in every way except the military. But yes, I believe we can expect some contraction, but not enough to shatter home values. And WDC is much more than a one industry town as you say. Besides, you are so sure the govt has to be cut, but assume Fed revenues cannot/will not be raised (??)

[VRE332]

Originally Posted by car54

"Fiscal cliff" is nothing but political BS.

Nothing of signifcance will be done about our fiscal problems until the TOTAL collapse of the economy occurs.

agreed. Why would you mess with people in a battleground State. It's political pandering.

[OrangeFish]

Originally Posted by car54

"Fiscal cliff" is nothing but political BS.

Nothing of signifcance will be done about our fiscal problems until the TOTAL collapse of the economy occurs.

Precisely. People that are "in the know" are very much aware of this and realize the "fiscal cliff" proselytizers are just trying to stir up a frenzy, either for their own financial gain or just because it is "fun" to be akin to Chicken Little.

[LynchburgLover]

Romney already said he would primarily use attrition to gradually shrink some agencies.

[sullyguy]

Originally Posted by Future Home Seller

I know quite a few people who said that when they bought their homes in 2006 just at the peak of the market and now are upside down.

2006 was only 6 years ago - a blink of an eye.

Come back in another 25 years.

THAT'S what "buying for a place to live" means.

==========

In my neighborhood I imagine there are quite a few who are "underwater" as above.

But then there are folks like me who have been here 20+ years living in our "place to live" and are hundreds of thousands of dollars "above water'.