Safety First: Your risk of developing COVID-19 depends on both your personal health and the situation in your community. People in areas with reported cases — especially where there’s community-spread — and those older than 60 years in age and/or who have serious medical conditions are the most vulnerable to getting sick and becoming seriously ill. Yet, for most Americans, the chances of exposure and serious illness are still quite low. As the virus spreads through close contact with infected persons’ respiratory emissions, the best methods of prevention include: keeping your distance from people who may have been exposed or appear ill, washing your hands often (and right), avoiding touching your face with unwashed hands, and learning to properly disinfect your surroundings.
At the time of this writing, there have been more than 135,000 documented cases of COVID-19, leading to nearly 5,000 deaths. As the situation continues to unfold, it’s essential that you stay up to date about what’s happening in your community and the recommendations of public health experts.
What Is The Current Coronavirus Market Impact?
The reality of the Coronavirus Disease 2019 (COVID-19) outbreak is deeply unsettling, both in terms of its public health impact and its effects on financial market health around the globe. So far, the biggest economic result of the outbreak has been increasing financial market health concerns, driven by steep declines in stock market values, and growing uncertainty about stock market health in many major economies.
Real Estate Market Health During The Outbreak
Real estate market health, however, seems poised to receive some unexpected windfalls as a result of the coronavirus market impact. Specifically, industry experts mostly agree in their predictions for real estate market health going forward: the longer the COVID-19 outbreak continues — and the worse it gets — the lower mortgage interest rates will likely drop. That’s because growing global economic uncertainty is driving investors to move their money into safer spaces (like U.S. Treasury bonds that prove to be good investments during times of trouble) which is, in turn, driving down Treasury yields and the corresponding, closely-linked mortgage rates. This particular coronavirus market impact makes real estate a particularly good investment to make right now; it’s proving that real estate is a safer investment in the long run.
Why Real Estate Is A Good Investment During A Pandemic (Or Any Other Event That Impacts Global Financial Market Health)
The bottom line is, even though mortgage rates are turbulent right now as a result of the overall coronavirus market impact, real estate values are still far less volatile than stock market values. What’s more, real estate market health is proving to be far more resilient in the face of the global coronavirus market impact than stock market health; changing market and mortgage rate conditions are still beneficial to the average U.S. consumer despite how fast stock market health has changed.
Early predictions about real estate market health suggested that even the smallest-projected dip in Treasury yields would give the average homebuyer as much as $21,000 more in purchasing power. Recent trends indicate that more homebuyers are staying home (away from open houses and showings) than was at first expected — the result of social distancing. Yet the market opportunity for buyers has not changed except to become even less competitive.
Financial Market Health Insecurity & Real Estate Market health Resilience Create Good Investment Opportunities
With news about the coronavirus market impact more dire by the day, more investors are reacting emotionally. As a result, many homebuyers and real estate investors seem hesitant. Smart business people, however, will recognize these market conditions for what they are: an incredible opportunity to invest in real estate and lock in a favorable mortgage rate.
This means that homebuying during the outbreak can be a positive experience. Home selling will likely also continue to be a largely positive experience, though decreased competition may increase the time on market some. That’s because real estate market health in the U.S. may be attractive to foreign buyers, and low mortgage rates mean buyers are more likely to take out larger mortgages. So long as you follow appropriate measures to stay healthy (taking CDC-recommended steps to prevent exposure/infection), continuing the home buying or selling process doesn’t have to present undue risk to your physical health.
A Real Estate Agent Is Your Best Resource For Real Estate Market Health Updates
As the COVID-19 outbreak situation continues to develop, it will be increasingly important to remain well-informed about real estate market health and interest rate changes. That’s why there has never been a better time (at least not in the last 50 some-odd years) to talk with a well-qualified real estate agent about your home buying or selling decision. So contact The Exceptional Home Team today to find out more about how the coronavirus market impact can impact your experience with homeownership.
