Corona Virus and the Housing Market

As the world deals with the outbreak of COVID-19 (better known as “CoronaVirus”), many buyers and sellers are naturally concerned. Naturally, what we know is changing at a rapid pace, and things that we believed were true yesterday, may be proven false today. The fact of the matter is that CoronaVirus has thrown virtually every market into a state of confusion. When markets aren’t sure about the future, they tend to contract, and that’s what is happening now. The net result is many people who have their nest eggs in investments are extremely concerned.
As a result, many economists are adjusting their predictions that the 2020 housing market will reach new heights as a result of the record low mortgage rates and strong job growth; things are looking a bit more dim. It needs to be noted that the market’s downward projection is partially a function of consumer confidence; people are scared, so the market downturn is something of a self-fulfilling prophecy.
According the National Association of Realtors (“NAR”), it is expected that short-term home sales will decrease by 10% over the following month. This poses a bit of a problem, as approximately 40% of home sales take place between the months of March and June.
At this point in time, it is hard to say what we will happen; but it is important to keep in mind that this downturn will last about as long as the virus lasts – it could be soon, it could be months. It is quite possible that savvy investors will realize that this is short-term and begin purchasing homes as their prices are artificially lowered during this period. The housing market will bounce back, and those who kept their eyes open will reap the rewards.
At the Chernov Team we understand that knowledge is power, and knowledge that the market is currently ripe for major deals is powerful knowledge indeed. While we don’t mean to suggest that the CoronaVirus is not a very serious matter, this article is designed to remind people that this, like everything else, will pass. When it does pass, the market will return to normal. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.