Good morning! This past Friday, 27.000 Boeing Machinists went on strike in our area. In the past, a strike or layoffs by Boeing really hurt our area. This time, we're much more diversified which makes it easier to weather the storm. The problem could be if the Machinists decide to stay out for a while.
Let's face it. Strikes are not really good for anyone. Boeing is projected to lose up to $100 million/day while the strike is going on. And the strikers get strike pay of $150/week after week 3. The problem I see is if the strike is prolonged, it could seriously put a damper on an already slowing real estate market.
Unlike other markets where there have been signs of life, we're stuck in a real estate slowdown and it doesn't appear it will be going away anytime soon. Combine that with this strike and it may continue to be slow the rest of this year. The unknown is how long the Boeing strike will last and how much money the Machinists have saved to pay their bills. Since most of America hasn't saved for a rainy day, I'll bet that if the strike goes on for more than a month, the workers are going to start missing house payments, etc. We've been relatively immune from foreclosures up here, but, if the strike continues for over 90 days, expect that to happen as well.
Boeing also has a ripple effect on the economy up here. There are a lot of companies that supply Boeing with services. if the workers are out on strike, look for other suppliers to pay the price as well. Up here we're all hopeful it will be a short strike. No one likes to see people get behind on their bills and pay the price. I'll keep you posted on this one. Again, we've been luckier than most on the real estate end of things here but this could rain on our parade! Have a great day!
Paul
Paul McFadden
Hi Paul, Nobody likes a strike, but the machinist vote was over 85% to go out. Once again you are right on with your analysis of the economy and effect.
List and Sell (and remember local economy and local market) Gary @ RentonHomeFinder
Thanks, Gary. Perhaps the takeover of Fannie Mae and Freddy Mac will buoy our confidence a bit. The prediction is interest rates may go lower now which could help buyers make up their minds about entering the market. Take care.
Paul