Bad news for Boeing is usually bad news for the NW economy.
The recent tragedies associated with the 737 MAX 8 and 9 airplanes in Ethiopia and Indonesia could be an indication the economy in the NW may be taking a hit and many smaller companies that supply parts for the planes will feel this “adjustment”.
Slowing Economy Indicator.
Historically, one indicator of a slowing economy is looking at the housing sector. There is a slowing in the growth of home prices according to Zillow as of March 31st, 2019, the median list price in Seattle was $699,500, and the median sale price was $675,300. Recently, the only way to be considered a serious buyer was to offer 10 or 20 percent over list price and sometimes even higher. Gone are the recent days of the multiple offers and home prices going way above the list price to secure a home purchase in the Seattle area.
The correlation is not direct, but we are sure some NW citizens suffer from Boeing Blues in there somewhere. Buyers are happy about this leveling off of prices in the Seattle area. Buyers can be certain of a home price when the bidding cools off and sanity once again rears its head.
We in the NW are tied to the National and even Global economy. With some of the largest companies in the world all based here in the NW. Fueling the growth in the NW are companies like Microsoft, Amazon, Starbucks, Boeing, and so many other huge corporations. When there is a slip in those economies, we will feel the pinch here. May not be a direct correlation but we will feel the effects if those global companies were to experience a slowdown.
These markets are always in a constant state of change. The only thing we can guarantee is a constant change!