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Sunday, February 12, 2006

Follow-Up: State RE Spending Passes House

A few weeks ago, you may recall, a bill was being proposed in the state legislator to spend away much of the state revenue gained thanks to the real estate boom. Yesterday that bill passed the House.

OLYMPIA — The House approved a $100 million expansion of the state's housing program Saturday.

The proposal would pump $25 million into the Housing Trust Fund from the state treasury each year for the next four years.

The money would go for rental vouchers for low-income people, services to the homeless, housing for victims of domestic violence, weatherization projects, farmworker housing and development of affordable housing.

"The increasing gap between incomes and housing prices has led to a major housing crisis in our state," said Rep. Larry Springer, D-Kirkland, the prime sponsor.

"Much of the additional state revenue we have seen this past year is directly linked to the real-estate boom. It only makes sense that we reinvest this money to offset the high price of housing."
Actually, it only makes sense to me to save the money for the proverbial rainy day, when the bubble finally bursts. But hey, that's only one of many reasons I'm not a politician.

(David Ammons, Seattle Times, 02.12.2006)

7 comments:

TimF said...

'Baja BC' has been a boom and bust state for the almost 25 years I've lived here. Used to be coupled to the Boeing business cycle, but looks like construction is the driver this time. In each boom, the legislature swears it will bank the surplus, then spends every dime. Then the inevitable bust hits and they raise the sales tax another 1% because, of course, it's an emergency. Prepare to say hello to 10% sales taxes in Pugetopolis soon.

Anonymous said...

Makes you wonder if the lawmakers ever read the paper!

How is it that they don't know the bubble's bursting!?!

Talk about Johnny-come-lately....

Anonymous said...

Lawmakers read papers. They know money here today may be gone tomorrow. Thus, they spend it, while they can!

biliruben said...

Y'all have no historical perspective or memory. The state had more than a billion dollars in a rainy day fund until free-lunchers backed Eyman's initiatives, where he specifically targeted said fund.

Tax-cut-happy voters who don't ponder consequences carry much of the blame for the precarious, short-term nature of this state's budget.

biliruben said...

Here's a flip-monster trying to make a tidy profit:

http://www.zillow.com/HomeDetails.z?zprop=48918527

Bought in August for $358K, sale price now $629K. And this is after a 20K price drop!

Zillow zestimate=$438K

Don't be greedy mister flip.

seattle price drop said...

Here's an interesting RE "situation" in the Cowen Park/Roosevelt area:

Nice old craftsman (@ 2500 s.f.) comes on the market 3 months ago for @699K. Sits, price reduced to 650K @ 2 weeks ago.

This week, 2 more completely comparable homes within a block of the first one come on the market for 550K and 545K.

All 3 are still sitting.

Whaduya think the chances are of House # 1 selling for 650 now that there are 2 more in the neighborhood for 100K less?

This is EXACTLY how it's supposed to go down.

seattlepricedrop said...

More flipper tales:

1919 NE Naomi Place:
bought March 2005: 561,000
on MLS Jan. 2006: 899,000

1221 NE 103rd St:
bought Sept 2004: 230,000
on MLS Jan 2006: 799,950

Here's an intertesting flipper to flipper at 5521 12 Ave NE:

bought July 2004 : 478,000
bought June 2005: 680,000
on Jan 2006 MLS for 779,000

The last flipper on this one is most likely going to get burned, as there are already 2 comparable (actually nicer looking) homes within a block that have come on the market this week for under 550K. Guess his neighbors are unaware how much their property is "worth"!
bought July 2004

The info is courtesy of:

http://www5.metrokc.gov/reports/property_report.asp