Southern California Economic Boost
Posted on November 1, 2007 - Filed Under Housing |
The wildfires in Southern California certainly have wreaked havoc. As the time of the writing of this post, the fires have been nearly contained. The press has done an excellent job of keeping everyone current with the thousands of homes lost. The hunt for the perpetrators continues.
Kenric asked an interesting question on his site regarding the wildfires. He was wondering what the fire would do to real estate prices. Certainly the price would not drop but would it necessarily go up?
This intrigued me. I wondered what would now happen to the housing market and the overall economy of Southern California.
Barrons answered my question.
With all the devastation that has occurred, nearly $1.7 trillion dollars is now going to be pumped into the local economy. This money comes from insurance companies and Federal assistance.
So what does this mean?
It means jobs. Many contractors who were struggling to find work can now get it. You’ll need builders, contractors, electricians. plumbers, scam artists, etc. New homes can’t be built without buying supplies. The lumber industry, electrical supply houses, Home Depot (*cough*). Local city governments are going to be swamped with all kinds of permit applications. All the garbage produced by demolishing the current structures and building new homes? Someone has to haul that away.
Maybe I could jump-start my new house painting business?
Nah.
For the homes that are rebuilt, my instincts are telling me the value will go up. Yes, I’m saying the exact opposite of the "experts".
The homes which were built 10 or 15 years ago are now going to be
replaced with brand new, up to code homes. In addition, by the time
these homes are built the end of 2008 will be approaching. I’m still
thinking the market will bottom out in the Spring of 2008.
If you liked that post, then try these...
New Photos on September 29th, 2005
I've posted new photos.
The list of "LASTS" on August 12th, 2005
Before I prepared myself to write this blog, I thought to myself that maybe I was being too sentimental.
Comments
2 Responses to “Southern California Economic Boost”
Leave a Reply
“I’m still thinking the market will bottom out in the Spring of 2008.”
My prediction is a bottom near Winter 2011, if the Credit Suisse ARM reset chart presented in “Mortgage Liquidity du Jour: Underestimated No More” is accurate. But that’s just me. Only a 3 1/2 year difference of opinion.
However, I thought that you had bought for cash flow…why are you fretting about house prices and market bottoms?
- pasadena
Pasadena, decidedly I’m not fretting. The market does what it does. I do have to admit I am liking this down turn. Everything is affordable!