Why the Writers Strike is Like the Real Estate Market

up2daterealestate strikeItems in the news these days and close to the hearts of Southern Californian’s are the status of the real estate market and what is going on in Hollywood with the writers strike.

How could these two seemingly different issues be linked together? How could they possibly have anything in common? Well as you will see they do share many similarities, probably some you would never have thought of.

  1. No End In Sight– seems as if the studios and writers can’t agree on anything and the forecast for the housing market is more of the same through 2008. Could it be that we just have to accept the new status quo, like it or not?
  2. Solidifying of Positions – home buyers think homes are worth less, sellers are holding tight to their prices and reluctant to admit that values have declined. Writers and Studios don’t seem inclined to “give & take” either. In negotiating you learn to try and achieve agreement on the small issues and table the large issues for later. Very difficult when the only issue is the large issue…money.
  3. Selective Help – we may see a return of the late night shows (Leno & O’Brien) while other shows remain dark. We are also seeing a federal government bailout for selective homeowners in the foreclosure process. The same rules don’t seem to apply to everyone no matter what industry you are in. I would have to be asking myself “What is so special about my neighbor”?
  4. The Ripple Effect – many people in supporting roles begin to feel the effects of a work stoppage such as production people, caterers, nearby businesses and restaurants. Also new household formations drive a tremendous amount of retail business. Also banking and construction workers will begin to feel the squeeze as construction related spending comes to a halt.
  5. All Over the News – newspaper reports, the internet and the evening newscast report on the latest information concerning these two issues. Most of us have now been exposed to these two events that we have some appreciation of the facts although we might not understand the underlying causes.

Here’s to 2008 and hoping it brings better news for both!