Will the Coronavirus cause a housing crash? Today’s article answers this question along with some others.
Is Coronavirus Tanking The Real Estate Market?
The short answer is no. In fact it has served to lower interest rates to all-time lows. I am aware of folks being pre-approved for 30 year mortgages under 3%. That is bananas! Just this time a year ago rates were closer to 4%.
Why Have Interest Rates Gone Down?
With the largest stock market selloff in 11 years last week, many of those investors put their money into the bond market. When this happens it makes it cheaper to take a loan on a mortgage which in turn caused interest rates to go down.
Has It Effected Housing Prices?
It is too early to say, we have had clients ask us how it will effect housing prices. The answer is we don’t know. In the short term it may serve to boost prices while interest rates stay low. Long-term the market may be effected if we begin to see negative growth rates due to furloughs and hourly cuts, or issues arising in the supply chain.
What Should I Do?
If your thinking about selling don’t let this stop you from doing that, in the short term there should be increased demand from buyers. If your thinking about buying, you should stay on course and take advantage of the low interest rates.
These are just a few of the questions on people’s minds. If you have any others feel free to reach out and we’ll do our best to answer them.