WILL CORONAVIRUS CRISIS AFFECT THE US REAL ESTATE MARKET?
Current data doesn't reflect negative fallout, but the industry remains cautious.
The real estate market was dealing with its own challenges heading into 2020 – including affordability and limited inventory – but there are concerns the coronavirus crisis may deal a heavy blow to the country.
The potential good news for prospective buyers, however, is that mortgage rates could decline. The Federal Reserve cut its benchmark interest rate to zero over the weekend, and mortgage rates tend to mirror moves in interest rates – though the impact can be delayed.
Prospects of a looming recession as a result of the economic effects of the virus may also push homebuyers onto the sidelines. In March, preliminary data showed the situation has begun to negatively affect both buyer and seller behavior – though not yet to a serious extent.
Sellers are very concerned about who’s coming to their property. At the end of the day we’re talking about strangers. Coronavirus is impacting all facets of the industry, including the industrial market. Its effects on the financial markets, manufacturing and more, coupled with the fact that it’s an election year, may not bode well for sellers, some experts say.