What does The Boeing Tanker Contract mean for Snohomish County Real Estate Values? [vid]
…And will this affect the local market in Puget Sound and Washington State.
The short answer is yes this is phenomenal news for the local Puget Sound Real Estate market and here are the 5 reasons why:
1. Optimism / Consumer confidence
2. Jobs — 11,000 and 3 to 1 ratio
3. Lower Unemployment rate
4. Less Foreclosures
5. Greater Demand
Video Response in Regards to this Question
“Hey, good afternoon. This is Anton Stetner, a great publisher and real estate advisor with the Real Estate Solutions Group at Keller Williams. Basically today, I am going to sit here and chat with you for a few minutes about what does it mean for Boeing to get the tanker contract for Snohomish County real estate and how is this going to affect the local market. Well, the answer is this is phenomenal. The reason it is going to affect the local market, I have kind of broken it down into five little reasons why we think this is great for the market.
The first one is basically it will create optimism. We don’t have a high consumer confidence in the local economy. So it contributes to stagnant home sales. Buyers don’t feel comfortable to go out and purchase right now at this time.
What’s the next thing it is going to do? This means jobs and lots of them. The PI basically estimated that there are going to be approximately 11,000 jobs created in this. I have also heard numbers in relation to Boeing that for every one Boeing job, it ends up creating three more. So you are talking about a ton of jobs in this Greater Puget Sound area that will be created. More jobs, what does that basically mean for us?
What do those jobs really mean? It means lower unemployment. Unemployment has basically been hovering around 10% in the local market. If you get unemployment to go down, once again, it creates more consumer confidence. It puts more people back to work. It puts more money into the local economy.
In turn, what do we end up with? We end up with less foreclosures. If we have more people being employed and more money coming into the economy, more people feel like it is a good thing to stay in their home. People get caught up on their mortgages. Less foreclosures.
All of a sudden, we are then in another area of greater demand. With greater demand, what we will see is we will see the Snohomish County and actually probably the whole Puget Sound real estate market start to stabilize. Greater demand, as long as supply remains the same, simple supply and demand basically tells us here that prices will then have to stabilize or they will have to increase. First, we would be looking for price stabilization, and then after that, we would be looking for price increases.
Please feel free to make a comment below or send me your thoughts or questions via e-mail, and we will talk about them next week. Thanks a lot.”
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