How will the coronavirus impact U. S. and local real estate?

By
Real Estate Broker/Owner with Destin Legacy Real Estate LLC BK3010025

What will be the impact of the coronavirus on the U. S. and local real estate markets be?

At present, this is unknown but here is what we currently know:

The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.

With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?

The National Association of Realtors (NAR) anticipates:

“At the very least, the coronavirus could cause some people to put home sales on hold.”

While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.

For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.

According to the National Association of Home Builders (NAHB):

“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.

Bottom Line

The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world.

Chip Jervis is approaching 4 decades of service as a real estate broker. Chip is a family man, boater, real estate broker, lover of coastal living, and all things Destin and northwest Florida. Chip can be reached at 850-974-3300 and chipjervis@gmail.com 

Comments (3)

Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Chip Jervis 

It is best to remain calm and logical when the potential for chaos exists. AND it is the only way to be when chaos breaks out

Mar 09, 2020 07:56 AM
Chip Jervis
Destin Legacy Real Estate LLC - Destin, FL
Real Estate Broker

Hi Doug,

I agree with you 100%...... thank you for the comment!

 

Chip

Mar 09, 2020 08:32 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hopefully cooler heads will prevail. My grandmamma always told me "This too shall pass" & indeed so will this.

Mar 09, 2020 04:02 PM