The three Real Estate markets that stand to be most affected by the fallout from the Coronavirus is California, New York, and Texas (specifically Austin). Why is that?
Over 13 Billion dollars of Chinese investments flowed into our U. S. real estate market last year. With whole cities closed down in China because of the Coronavirus it’s hard for Chinese investors to even visit the United States.
Article: Coronavirus may whack New York, California, Texas luxury real estate markets
UPDATE: Today was saw the DOW down 1000 points at the open as this virus spreads and fear grabs hold of the financial markets.
If this continues…the fear…it will eventually affect the U. S. financial markets even more. That means it will also affect the real estate market.
I’m not a doom and gloom guy. I consider myself a realist. As a former Financial Advisor at Merrill Lynch and a real estate broker from over 18 years I know that markets move in cycles. I know that recessions are usually caused by events you don’t see coming.
Six months ago nobody was talking about a coronavirus. Everybody expected our financial and real estate markets to continue to go up and up. That still may be the case. But, it’s always prudent to be watchful to those surprises that could affect our market negatively.
What should you do?
- If you love your home and plan to be in a long time, just do nothing.
- If you’ve been thinking about selling you may want to take advantage of this seller’s market and sell now. There is a growing probability that our U. S. real estate market might stagnate for a period of time.
- If you’ve been thinking about buying real estate you can take advantage of the Fed’s policy that has created some of the lowest mortgage rates in history.
Buyers might be thinking, shouldn’t I wait for prices to recede. Well, you could, but we may not actually see prices go down. And, if inflation takes hold, mortgage rates will go higher.
Do you just need someone to talk to? Give me a call: Dan Forbes 512-516-4666.
