SEVERAL STORIES IN RECENT DAYS SHOW THE ECONOMIC SLOWDOWN WILL SOON AFFECT YELM!
1. “Quadrant to lay off 45 because of slow home sales”
“In response to sagging sales of new homes, Quadrant Homes says, it will lay off 45 employees.
Bellevue-based Quadrant is a subsidiary of the Weyerhaeuser Real Estate Co.
Quadrant builds new homes throughout Seattle and the greater Puget Sound area, including South Sound,”
quoting The Olympian.
2. Home prices tumble by sharpest annual rate
Closely watched index falls 16.3 percent in July from the year-ago period
“A closely watched index released Tuesday [Sept. 30] showed U.S. home prices tumbling by the sharpest annual rate ever in July, but the rate of monthly declines is slowing.
The Standard & Poor’s/Case-Shiller 20-city housing index fell a record 16.3 percent in July from the year-ago month, the largest drop since its inception in 2000. The 10-city index plunged 17.5 percent, its biggest decline in its 21-year history.
Prices in the 20-city index have plummeted nearly 20 percent since peaking in July 2006. The 10-city index has fallen more than 21 percent since its peak in June 2006, quoting the AP.
3. “Demand rises as many wait out housing market
Few vacancies push rent cost higher in Thurston County”
“South Sound apartment vacancies remain tight and rents continue to rise, according to a fall survey of the Puget Sound apartment market…
Because the housing market is slower, more higher-end houses that can’t be sold are becoming rentals and pushing average rents higher, Seth said…
Powell noted that Thurston County’s vacancy rate was lower than the overall Puget Sound vacancy rate of 4.8 percent, according to the survey,” quoting The Olympian.
4. “Americans eye bailout, and continue cutting back”
“Many Americans spent an uneasy weekend wondering whether the rescue would help in time – or at all – and trying to figure out where next to cut back as the economic screws tighten.
Would financing come through for the new washing machine? Could the old car hold out another year? Would a nice dinner out bust the budget?
‘People are afraid,’ said Linda Morrow, who owns a shoe and handbag store in a Dallas mall. ‘People basically don’t know what the future will bring. They’re afraid to spend. They want to see what the bailout will do. They’re waiting till after the election,'” quoting KING-5 News.
Towns, cities, and states need to trim and greatly reduce their budgets and quick or they will soon find themselves in deep financial trouble due to the inability to collect property taxes. State & city sales tax revenues will be down, as well, and significantly.
WILL BE INTERESTING TO SEE WHAT THE CITY OF YELM BUDGET HOLDS, AS THE CITY OF ROY HAS GONE BROKE, THURSTON COUNTY IS HAVING MAJOR CUTBACKS DUE TO A MULTI-MILLION DOLLAR DEFICIT AND THE TIMBERLAND REGIONAL LIBRARY SYSTEM HAS A MULTI-MILLION DOLLAR SHORTFALL AND HAS TO GO TO THE VOTERS FOR A LEVY.
IF HOME SALES HAVE SLOWED, AND HOME PRICES AND APPRAISALS ARE TUMBLING, THEN THE TAX REVENUES FROM THESE TWO SOURCES ALONE ARE GOING TO TUMBLE, AS WELL. YELM HAS BEEN SPENDING ALOT OF MONEY THESE LAST FEW YEARS AND FROM THE RESERVE FUND! STORM CLOUDS ARE GATHERED ON THE HORIZON