Coronavirus Impact on NY Real Estate?
The Coronavirus has been the center of a lot of fear, but how has this epidemic impacted the NY Real Estate Market?
The Coronavirus, Co-Vid-19, has evoked much fear in our nation and throughout the globe. The virus emerged in Wuhan, China and has since expanded into other nations. There are now verified cases throughout the United States and in New York.
Not only are civilians fearful of the health dangers this virus may cause, the epidemic has led to growing concerns about the National and Global Economy. In a nine-day span, the Dow Jones Industrial Average suffered a steep 3,938.67 point drop, falling 13.42% during that span. This marked one of the steepest point drops in such a minute period of time since the inception of the stock market. The coronavirus selloff was driven largely by intense levels of fear over the pandemic in shareholders, as opposed to negative developments of economic factors. Savvy investors may see this selloff as an opportune time to buy and bring the market back to its original state.
In a time of such economic confusion, the question that looms over the heads of homeowners and purchasers is how does this impact the real estate market? The real estate market takes time to respond to any negative developments in the economy or stock market, and therefore home selling prices have not been impacted as of yet. The medical and economic situation in our country has not yet settled and as of now there is no definitive answer on which direction the market will go. The stock market has been extremely volatile since the selloff, going back and forth between major gains and losses. President Trump has signed an $8.3 billion emergency coronavirus aid package, of which a large portion will go towards vaccine research.
The factor that is keeping the real estate market healthy for both buyers and sellers is the current interest rates. Amidst the state of chaos, the Fed made the surprising decision to cut the interest rates yet again. Mortgage rates have now fallen to the lowest level in its history. Rates for a 30-year fixed mortgage are down 112 basis points from this time last year and down 165 basis points since the 4.94% peak in November of 2018. Buyers understand that these rates will not last forever and if they do not buy in this market, this opportunity may not return. This has been a strong counterbalancing factor to keep the real estate market healthy and in check.
As of now, the NY real estate market and prices are moving along well, largely unaffected by the current situation. Only time will tell how this situation will progress and if there will be any profound impact on real estate markets.
I wish you to stay safe and healthy!
Marios Milonas, Licensed Real Estate Salesperson
Keller Williams Realty Landmark
(917) 297 - 1630