The world seems to be overtaken by the news of the pandemic, the Corona virus. With a string of deaths, quarantines, which is keeping folks inside their homes; stocking up on food, water, and hand sanitizer- the Corona virus is effecting the world in a big way. Side-note, have you seen the prices of Purell on Amazon? (yikes!)
The Domino Effect: With China producing over 30% of the world’s goods, it absolutely will have an impact on the world. Many economists fear it could lead to a major economic slowdown. While people are avoiding catching the Coronavirus, they are staying home; skipping their regular activities, such as concerts, sporting events; and ultimately not spending money. These actions are what can lead to slowdowns for businesses and industries as a whole.
How does this effect our real estate market?
Positive for Buyers: The Fed had an emergency rate cut to ensure the housing market would not slow down. With rates in the low 3’s, the demand in the market has become more intense than it was previously, not that our market didn’t have enough demand already! When buyers can purchase a more expensive home for the same monthly payment; it is extremely enticing.
Positive For Homeowners: If you currently own your home, you could likely benefit from refinancing into a lower rate. If you would like to chat with a lender about your situation, please feel free to send me a message.
Potential Negative: If potential buyers have alot invested in the stockmarket for their home purchase, their funds mostly likely have diminished significantly. This can negatively impact their ability to buy.
What We Are Seeing: While the stock market and other industries are seeing a slowdown, the housing market is seeing the opposite. In my experience with home buyers and since the news of the Corona Virus: it has not made them hesitant to purchase a home- it has made them more motivated with the rate drop. The motivated buyers (who need to move!) have not been phased by this epidemic, making this challenge into an advantageous situation. The competition is still high, and inventory low; which makes for a fast paced market.
With news of the Corona Virus (hopefully!) getting better (the news changes daily) , we may have experienced a short lived, extremely low interest rate; that many wished they would taken advantage of.