How is Corona virus affecting the real estate market! It’s true corona virus is affecting the financial markets, the housing markets, and hell even the super markets but what does it mean? I made a video at the beginning of this month that just went out and unfortunately it is already outdated. The video was so upbeat because the reality of corona virus hadn’t reared it ugly head. The economist and experts had no clue just 12 days ago how corona virus was actually going to affect our housing market. But after seeing stocks plummet for 2 weeks straights here’s what their saying. It’s true corona virus is affecting the financial markets, the housing markets, and he’ll put super markets but what does it mean I made a video at the beginning of this month that just went out and unfortunately is already outdated. The video was so upbeat because the reality of corona virus hadn’t reared it ugly head. The economist and experts had no clue just 12 days ago how corona virus was actually going to affect our housing market. But after seeing stocks plummet for 2 weeks straights here’s what their saying. C.A.R is likely to revise its 2020 forecast downward but not dramatically. Meaning they are thinking that home sales and prices will not increase as much as previously predicted, but with lower interest rates this should help offset the effects of a slower economy and increased economic uncertainty Because of the impact to the financial markets it means that households will become less wealthy which will reduce the demand for real estate. More so affecting the top of the market where wealth is often used as a source of funds for luxury homes, second homes, and investment properties Homes will most like stay on the market a Little longer and a softness in home prices for these upper price segments Ever since I’ve been doing these market updates since July of last year, talks of recession have been looming, but I have always stated from what I’ve read and from the facts that a recession doesn’t need a financial crisis like we experienced back in 2008 9 and 10. But if consumers confidence goes down and spending dwindles as a result then risk of a recession increases And with all of that mortgage rates are likely to fall even further than what was reported at the beginning of March. Last week we had an emergent 50 basis point cut to target interest rates and the cost of a 30 year fixed mortgage rate could Come down an additinal 10-20 points in the coming weeks We will have a better idea once the March data comes available for consumer spending, home sales and home sales prices. But what does that all mean to our real estate market. Now first If you found this video to be helpful please hit the like and subscribe button so you can get informed when my next video is posted Back to how this could affect our buyers and sellers Homeowners if you’re thinking about selling, home prices may not be as Strong moving into the spring as we once predicted. On the other hand because corona virus may likely cause more people to hold off on listing this may also mean that the shortage of homes is increasing as buyer demand also increases. That could still be a win for a seller because having more buyers than homes available is what drives up the price a buyer is willing to pay. Now if you’re a buyer, the good news is that interest rates are super low, unfortunately there aren’t as many homes to but so you may spend more time searching than you would have pre corona virus and with the financial markets taking a huge hit it also means buyers may have lost a portion of their down payment.
Latrice Deluna, MBA Your Lake Forest Real Estate Expert REALTOR®? CA BRE #01797842 Direct (949) 424-3274 LatriceDelunaHOMES.com Latrice@LatriceDelunaHOMES.com Latrice Deluna: Your Lake Forest and Mission Viejo real estate expert.
My passion for helping people achieve Lake Forest and Mission Viejo's real estate dreams are complimented by my strong work ethic. Our focus is to help you sell your Orange County California property faster and for more money..and to help you find and buy the perfect home with little hassle, a great price and under your terms.
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