Will Coronavirus impact the real estate market?
The rapid growth of COVID-19 (“Coronavirus”) cases continues to create turbulence in the global economy and in domestic financial markets. Real estate experts will continue to monitor the market for negative macroeconomic impacts on the demand for housing as well as the supply chain impacts that could adversely affect the cost of new home construction in the coming months and quarters.
Top 5 Potential Impacts*
- Mortgage Rates Will Likely Remain Low, Or Even Fall Further As A Result of Coronavirus.
- Financial Market Volatility Could Reduce Demand For Luxury Homes, But Also Create Potential Opportunities for Luxury Home Buyers.
- Forecasts Have Been Downgraded, But Few Economists are Calling for Recession Yet.
- New Home Construction Could Slow Further, Exacerbating Already-Tight Supply.
- Low Rates and Fewer New Homes Constructed Should Place Upward Pressure on Home Prices.
It’s clear that the Coronavirus will have an impact on the economy and the housing market in 2020, but it is also clear that it is not time to panic.
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