I just LOVE positive news and positive outlooks! I read this swell article in The Bellingham Herald about our region's economy, and could not agree more. Someone might ask, "What does Boeing and business down south have to do with the Whatcom County real estate market?" Well, a lot! What is good for the region is good for all of us. We have a suprising number of residents in Whatcom County that digitally commute to work. LUCKY them! With the advent of the 'mobile office' and the ability to connect to the internet from nearly anywhere, folks have a lot more flexibility when it comes to choosing where to live. Seattle is a short 1 1/2 hour drive from Bellingham, so it is easy to make it in to the city once a week (or when necessary) to check in with the home office. If you are urban-weary and traffic-jammed, and have the ability to work remotely, Bellingham and the surrounding county are a welcome refuge from the hubbub. When you are ready for some tranquility and R&R...make the quick drive up north, check out Whatcom County, and see why so many people CHOOSE to make us their HOME.
Live Good. Be Happy. Live in Whatcom County.
-Mimi
Regional economy on a hot streak
Courtesy of The Bellingham Herald
When Michael Parks talks about the regional economy, he commonly uses sports analogies to describe what’s happening. These days he likens the economy to hitting a baseball on the sweet spot of the bat.
“This is an amazing economic time for the Pacific Northwest, and I believe we’re only in the third or fourth inning (of these strong economic times),” said Parks, a regional economist who is publisher of Marple’s Pacific Northwest Newsletter.
For years I’ve heard Parks talk about the regional economy and have read his work in Marple’s. He has no problem telling it like it is, painting a bleak picture when the economy has gone into a slumber. To hear him speak glowingly about where things are going means there is plenty he likes out there.
The region’s economic strength is also showing up in some of the stock numbers. D.A. Davidson & Co., which operates the Davidson 99 Regional Stock Index, reported that for the first six months of the year the index is outperforming the other major indices. The index has 99 stocks from companies operating in seven Northwest and Rocky Mountain states. The index has gained 10.05 percent since the start of the year; Dow Jones has gained 7.59 percent, while Nasdaq has gained 6 percent.
“The index had a sensational first quarter, followed by a slower second quarter, but overall there has been some consistent growth in many different industries,” said Fred Dickson, chief market strategist for D.A. Davidson.
Stocks such as Boeing, Costco and Microsoft have been hovering around 52-week highs, while several regional banks and Starbucks have been hovering around 52-week lows. The banks have been adjusting to all the news surrounding sub-prime loans, Dickson said. Starbucks has seen slowdowns in sales growth in existing stores.
A significant factor for the rosy economic picture is the well-being of Boeing, Parks said. The Dreamliner airline has been a big hit, with enough orders to keep Boeing busy through 2012. Many other Washington state aerospace companies are benefiting, resulting in more than 18,000 new jobs in the industry in the past three years.
“Boeing made a great decision a few years ago to go with a more fuel-efficient plane, while Airbus is struggling with its decision to invest in a much bigger plane,” Parks said. “It looks obvious now that airlines would be worried about fuel costs, but a few years ago fuel was a lot cheaper and it appeared there would be plenty of supply.”
Dickson said Microsoft also continues to do well, but it has less impact on the region because there are fewer major software companies nearby, compared to the number of aerospace companies that cluster around Boeing.
“You also see continued strength in a variety of other companies, including those that do business in Asia, as well as nonresidential construction,” Dickson said.
There are plenty of other positive indicators that Parks is seeing. Job and population growth is stronger than the national average, state revenue from sales taxes continues to beat forecasts, plus unemployment is at historic lows not only in Washington, but Montana and Idaho.
There are only a couple of potential trouble spots that can put a damper on things.
Dickson’s concern is in residential real estate and the impact sub-prime loan issues might have on regional banks. For Parks, he’s worried if oil starts getting cheaper.
“If the price of oil falls, it tells me that the world economy is slowing down,” Parks said. “With a company like Boeing around, we’re tied to what happens in the global market.”
"If anyone you care about needs a Realtor, please share my name with them." -Mimi Heading into my 20th year in real estate, I am a third generation Realtor® serving Bellingham and Whatcom County, Washington. My motto is: Do good work for good people.
