Fear is rampant all over the globe over the Covid 19 Virus, commonly known as The Corona Virus. The unprecedented steps that have been taken by not only governments but also the private sector have most feeling angst over the state of the economy. Many are asking about the short and long-term impacts of the Covid 19 Virus response on the real estate sector. Although there are many concerns, there is also tremendous opportunity for homebuyers and investors alike.
The volatility in the stock markets that have been experienced over the past two weeks has not been seen in many years. If the markets have increased on one day, the pendulum has been swinging the other way the next day. This has primarily been driven by irrational fear. It is true that we all need to be diligent, but the average person is not likely to experience significant health issues. Many of our more vulnerable neighbors have real reason for concern, of course.
Let’s view our economy, including the real estate sector, as a pendulum. When a pendulum swings one direction, it snaps back in an equal amount in the other direction. World governments have rightly pushed their responses in unprecedented directions. If we look at historic swings to the negative, those swings are often followed by tremendous swings to the positive. I am certainly saying don’t worry about the real estate markets. On the contrary, we were seeing a “peaking” in the real estate market in many markets prior to the Covid 19 outbreak. We do, however, expect a “pop” in the market immediately following the downturn in new Covid 19 cases followed by a return to normal. We firmly believe that buyers and sellers will be encouraged to move forward with plans to buy and sell their homes at that time.
The Institute is here to help our members to navigate these turbulent waters. Let us know if you have any questions or if we can help. That is why we’re here.