The Coronavirus: How it May and Already has Impacted the Housing MarketMichelle
There has scarcely been an industry that has not been affected by COVID-19 better known as the Coronavirus. This of course includes the real estate industry, which is by definition a business that is intimately connected with the health of the overall economy, and therein may be an indicator of how profoundly COVID-19 will affect the housing market. Where goes the economy so goes the housing market which although not subject to the volatile up and downs of the stock market, is still a part of our financial system.
Specific Effects the Virus may have on the Housing Market
For now the impact of the Coronavirus has not had an effect on the real estate industry. However, that is likely to change as developments around this crisis continue. Here are several ways COVID-19 may ultimately impact buyers and sellers.
• Mortgage rates could fall as a result of Coronavirus. The International Monetary Fund (IMF) has already cut its forecast for global economic growth by 0.1%, despite the impact Coronavirus is having on businesses.
• The outbreak may drive investors into the bond markets, where lower rates are creating more attractive debt/refinance options.
• Some domestic buyers may be dissuaded by rising economic uncertainly in light of the impact the virus is already having on the overall economy. Buyers who can make regular monthly payments are likely to take advantage of falling interest rates to significantly reduce their borrowing costs. This is a benefit they will be able to enjoy long after the virus has receded.
• New home construction in California could slow down even further. The Coronavirus is already disrupting supply chains that the California Building Industry uses to support new home construction. As this disruption continues, the cost of materials may increase or become limited. This may impact the cost of construction and ultimately housing itself.
While it is true that the Coronavirus already is having an impact on the housing market, it is also true that ours is a resilient industry. We have survived many a crisis and have continued to thrive as one of our nation’s most important industries. Thus, if you are looking for a Moorpark realtor we are still able to provide you with many options in a new home. We have Moorpark homes for sale that are still solid investments in a time of uncertainty.