The Coronavirus is a nasty virus that is spreading across the globe leaving people with feelings of uncertainty and panic on how this will affect our economy.
We do know that the market has already taken a dip and that the feds recently did a ½% reduction in order to keep the economy strong, but still people wonder on how long this will last and will we continue to spiral down.
NYC has started to brace for major disruptions as tourism has already taken a hit, and markets supplies are now being delayed; since we get a large amount of our necessities from China.
So….. how could this impact the real estate industry? As the shipments that we receive from China take a delay, construction companies are having to wait a little longer to receive what they need. This will influence the number of new homes going on the market. With inventory already low due to seasonality trends on buying and selling, there could be even fewer homes on the market in the weeks to follow.
If you are selling a home there is less competition, as the inventory is low which places your home is in higher demand. Also, with interest rates being low more individuals will be looking to buy.
If you are looking to buy, now is a great time due to this drop in interest rates. Just because the inventory is low, the right agent will be able to do the research for you and assist you to find the right home.
Interest Rates are as Follows:
· New Mortgage loans are as low as 2.7% on 15yr fixed or 3.5% on 30 year
· Refinancing loans are at 2.8% 15 yr and 4% 30 yr fixed
Note that rates can vary among lenders, and if applying for a VA loan it could be even lower.
Bottom line: For now the economy is good and it is not expected to affect the real estate industry. Therefore, if you are buying or selling … now is the time.