The Coronavirus (COVID-19) is causing massive global uncertainty and has created a U.S. stock market correction that no one saw coming. It is also making a large impact on lives and families around the world. With this news, the public is wondering what effect the Coronavirus is having on various markets. With all of this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?

The National Association of Realtors (NAR) anticipates:

“At the very least, the coronavirus could cause some people to put home sales on hold."

While this is an understandable reaction, it’s important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it’s important to educate yourself so you’ll be able to take thoughtful steps instead of having a knee-jerk reaction to what is currently happening.

For example, there are now lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. Buyers and sellers alike should consider this unique opportunity in the market when making real estate decisions.

According to the National Association of Home Builders (NAHB):

“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”

Below is a visual that shows the market drops during past virus emergencies.

The Bottom Line

The full impact of the Coronavirus is still not yet know at the moment, but with mortgage interest rates hovering at the lowest levels in the history of the housing market it may be time to make a move on your real estate plans. It’s in these times that working with an informed and educated real estate professional can make all the difference. Let’s connect so that our team can help you make the best decision possible!