A big question mark if Qualcomm lays off 3000 employees. What do you think?
16 replies (most recent on top)
If you live in National city or Chula Vista, you don't have to worry except it.
Qualcomm-er think they own Sun Deego. Get out of the well papis.
As of 2017,just to put in perspective , for smarty pants to do some analysis ;
-
There are roughly 1.2 mil housing unit in SD
-
Total population ; 3.3 mil, 2.87 per house hold
-
Qualcomm has ~ 10000 employees in SD. ( may be less )
show me the dent due to layoffs. [ Most of the Qualcommers own high end homes, still it wont cut it ]
All you baffoons esp those who have never worked at another company think sky will fall. Do you even know the percentage of homes owned by Q employees?? Minuscule in the larger scheme of things. Nothing will happen.
@hvo The fact that the average home price has already surpassed the peak in 2006 means that, on average, anybody who has bought a home in the past 20 years should have EQUITY in their home. For down payment in Bay Area you can simply Refi your existing home to a new 30-year loan and cash out the equity and still keep the house with similar mortgage amount due to the new 30-year term. If you are moving from San Diego for a new job and you need to sell your house for a down payment , you have not done your homework or you are buying a house that is too big for you, financially speaking. So many fellow engineers are so bad at managing their money, it is really appalling.
Qualcomm is about 4% of the San Diego economy (GDP). There will be an impact in Carmel Valley, 4S ranch, Del Sur for certain. You will see a few new for sale signs on each block in early summer. There is a concentration of Qualcomm employees in those newer areas and I would estimate as much as 10% concentrated in some areas. Even if 10% of those people put there houses on the market we are talking about 1%. In a place like Del Sur that is a few hundred homes in a place with a 2017 summer inventory of less than 30 homes. Inventory has been extremely tight the last 18 months. I think we will see a 5% hit in selling price...undoing some of the recent irrational run up in price.
@-zfh / OP
Okay realtors!
The real estate market in San Diego is headed towards a 6 to 7% correction in any case. The economic outlook is not so good and the Fed increased the rates again.
Real estate in San Diego has bigger problems than Qualcomm laying offs engineers ..
The real este in socal has been boom and bust.. the reasons are different but the effect is same everytime.
There will be no to neglidible change.
Qualcomm is not the largest employer in SD [ i.e # of employees in SD ] but definitely THE biggest noise maker in SD. Get out the well.
Will be surely affected...may be 5% down? Not because they cannot rent out their properties and still be profitable, but most of them will have to relocate to the Bay area for their new jobs, and without selling their property in San Diego, they cannot afford the down-payment there.
The fact is that if you effectively lower income in a small area by $1B this will cause economic contraction all other factors held constant.
A modest impact to all those newer 4S Ranch place etc..........
This is my crude prediction -- may not be true. The impact will be seen in 3 to 4 months as many people will continue to look for jobs in SD. Mostly areas in north county that are within 10 miles from QC will be impacted. Also affected will be small businesses - Medical, Dental, Chiropractic practices in around QC. Very north of SD - Oceanside or Escondido are markets influenced by Marines, and they will be least impacted.
@OP The fact that you even asked such a silly question shows that you need some basic understanding in real estate. Do u know that the median home price in SDC in 2017 already surpassed the peak in 2006? More than 42k homes were sold last year, so let’s assume the layoff is as high as you dream up at 3k, and ALL own a home and ALL from San Diego, and as many as 20% can’t rent it out AND can’t pay the mortgage. That’s only 600 homes, I.e. 1.4% of the total sale volume in a year. And that is the most severe projection. Realistically we are talking about probably less than 1/10 of that, in the 0.1% range. That’s noise! My advice to you is to get a basic education in Real Estate, before you throw your money away.
1 word, and of the world
No impact. Plain and simple.
Qualcomms contribution to the SD GDP is drop in the ocean.