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.
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.
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.
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.
