Whenever we’re considering bringing a home to market,
it’s
worth taking note of the overall local and national socio economic conditions, and
how those factors could potentially effect consumer behavior. I make it a point to continually keep tabs on
what people are reading so as to be able to intelligently address buyer
objections. The question has come up in
recent weeks about what the Coronavirus could do to real estate markets. Fact is, no one really knows. Commodity markets, of which real estate
certainly is, do not like uncertainty.
We’re seeing the effect of such on the stock market. Real estate markets will take longer to
react, if at all, because it’s not an investment that you can quickly get in or
out of such as stocks of bonds. As the
ten year treasury note is seeing historically low yields, and since mortgage
rates tend to mirror the ten year note, both new mortgages and refinancing rates
are presently near historic lows. This
bodes well for the prospective buyer pool and it could yield a spike in home
sales in the short term.
Here’s one take on the Coronavirus situation: https://www.fool.com/millionacres/real-estate-market/articles/how-the-coronavirus-could-impact-the-american-real-estate-market/
