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March 06, 2020 at 6:04am | Mac Rogers
had a number of people ask me about the coronovirus and how it's affecting the real estate market or how it will continue to affect it.
What we do know is that the Coronavirus (COVID-19) has caused a lot of uncertainty in the world. What started out in China is now affecting everybody globally. The U.S. stock market plummeted and no one saw it coming. Question is how do we plan for all
this uncertainty. Particularly if you have plans of buying or selling real estate.
Here's my first hand experience with my clients, both on the buyer side as well as the selling side. It seems like the sellers are more concerned about the coronavirus than my buyers. Last week I've had sellers voice their concern about their properties
might not sell and staying on the market and maybe faced with price reductions. On the other hand, there was no mention of the coronavirus from any of my buyers. It was business as usual, going on tours and open houses.
We also had an open house ourselves over the weekend and traffic was busy as usual. So far, I have not seen anything that would cause me to worry about the coronavirus as it affects the real estate market. Although I have a couple of buyers whose down
payments are tied to the stock market, they simply had to make adjustments in order to still proceed. They remain optimistic about their purchases.
I always say, when making a decision let's look at the facts and find out what we know. Here's what we know. In the last 5 virus outbreaks, the stock market reacted just like it did this time around -- after the initial reactions, the market returned.
And it's important to remember that a stock market correction does not = housing crisis. So again this isn’t a time to panic. Know the facts.
Here's another thing that we know. When investors get scared, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. Again this is exactly what we are seeing right now. Rates are hovering at its lowest levels in history.
Look, this coronavirus is serious and will continue to affect a lot of people all across the globe. The bottom line is this. We don't know yet what the full impact of the Coronavirus will bring. Let's not act in fear but rather be armed with knowledge
and be vigilant in our actions.