Coronavirus - What is happening?
What a way to kick off my blog…. With virus talk!
I figured it would be since COVID-19 is the only topic that seems to be gracing any media presence. Is there even a presedential election happening this year? Anywho, the main purpose of my writing this post is to cover the concerns I am personally experiencing with the affects of the coronavirus as well as state my personal stance on what to expect as a result of everything shutting down and everyone “self quarantining".” Especially in the housing industry.
As of now, there has most definitly been a shift in my business. As much as I would love to go on appointments and meet my customers, my moral compass is holding me back. A true battle between mind and heart. I want money but I don’t want to put anyone at risk. I have actually received multiple phone calls from people I am working with that they are putting their goals on hold due to the uncertainty of what is happening in the world. I understand that fear. Is the market going to crash? Will I still have a job after this blows over?
Times are conflicting right now. With the stock market taking it’s fall, investors are rushing to sell stocks and buy bonds. The FED is cutting rates to all time lows. Now, this doesn’t necessarily impact the mortgage world right away but it can. With all of this going on, we have also noticed a delcine in oil prices. In fact, the lowest level in 18 years. Everyone is wondering how these changes are going to trickle into the economy.
Many people are on the watch for a recession but what many don’t realize is in the past six recessions, only one has negatively affected the housing market. That one was the crash of 2008. In all of the others, housing prices have actually increased. In my opinion, this scenerio is more similar to what happened in 2001 after 9/11. We are experiencing an unexpected turn of events that is leaving everyone in fear but will ultimately bring us together to resolve any shifts that occur. With the tragedy of 9/11, the economy began to recover just two months after the fact. That was while America was already in a bit of a recession. People may choose to leave the market due to uncertainty but in the grand scheme of things, I personally don’t foresee housing prices dropping or mortgage rates rising significantly because of this virus.
Bottomline, there have been many changes in the industry from the past till now. Mortgage standards have become stricter, less homes are on the market, prices are much more controlled, and people are seeing more equity in their assets. This shift in 2020 is giving an opportunity to people to invest. Money is nearly free at this point. Be smart with where you put your money. I personally don’t beleive we are going to see a huge change in numbers from a real estate perspective after this pandemic passes.
