Own Property In D.C. Beltway? Read This (Sequestration And You)

[30 cal slut]

So, uh, my colleague at work gets paid to figure out what's going on D.C.

He was one of relatively few people who called sequestration well over six months ago.

So, anyways, I asked him, with so many DoD jobs in the beltway getting hit ... would this not adversely hurt home prices in the area?

His response: "Absolutely. With half of the sequestration spending cuts hitting defense - I'm 90% sure beltway home prices are going to take a hit, and soon."

Recall that beltway home prices (and the job market for that matter) fared relatively well post the 2008 meltdown.

http://www.usnews.com/news/blogs/home-front/2013/03/01/looming-sequestration-cuts-will-hit-dc-the-hardest?s_cid=rss:home-front:looming-sequestration-cuts-will-hit-dc-the-hardest&utm_source=usnews&utm_medium=twitter

Implications:

If you own a home in a place like NoVA, hmmm, keep an eye on things. Maybe purchase some kind of home value insurance (like put options on the Case-Shiller Home Price index).

If you're looking to buy in the area, wait for the price adjustment.

[30 cal slut]

This is just the Army. The Navy will look a lot like this.

http://www.militarytimes.com/static/projects/pages/army-cuts-by-state-021913.pdf

http://static1.businessinsider.com/image/5125553e69bedd9d1f00003b-900-681/army-lays-out-state-by-state-cuts-021913.jpeg

[Magic_Salad0892]

Holy ****ing God.

Is that them saying they're going to drop, pay-cut, or relocate 300,00 US Army members?

[tb-av]

Holy ****ing God.

Is that them saying they're going to drop, pay-cut, or relocate 300,00 US Army members?

I believe that is private contractors as well. In fact one report I heard but didn't catch the whole story, the majority was private contractor ( like 70/30 or so). I suppose it varies.

I thought all this involved active Military but apparently not.

[30 cal slut]

Civilian contractors are going to get the brunt of the cuts, I think.

[30 cal slut]

Navy. Kinda stale and you have to muck through it.

http://www.militarytimes.com/static/projects/pages/navy-budget-plan-021913pdf.pdf

[Grizzly16]

Civilian contractors are going to get the brunt of the cuts, I think.

Guys on the two way range are who are going to get HURT by this. Some of the responses to these reductions in spending increases have cut deeply into guys being sent to good training off base.

[trio]

Houses in this area didn't fare that well after 2008..

There are people in my neighborhood who paid $850k for a house I paid $600k for...

And there are people in this neighborhood who paid $375k for the same house

Both lots adjacent to mine have passed through foreclosure, one twice

So, no we aren't Vegas, but it ain't all roses either...at one point Prince William County (my county) led the nation in foreclosures

So worse? Sure...I'll be $300k underwater instead of just $200k

Stuck is stuck