Posted on 03/02/2020 9:00:16 PM PST by Mariner
The coronavirus has sent stock markets plummeting and no industry, including housing, is immune.
Mortgage rates are hitting multi-year lows as investors, fearful of a possible coronavirus pandemic, have flocked to safe havens like Treasuries, sending the 10-year Treasury note to a record-low yield. While low rates will give hesitant homebuyers a reason to purchase, the heightened demand for housing could further depress historically low inventory. Additionally, homebuilders rely on China, where the coronavirus or COVID-19 originated, for construction materials and any disruption in the supply chain could impact their ability to deliver much-needed new inventory into the market.
“There’s a lot of uncertainty. It’s a good thing that interest rates are lower, it makes folks afford a home,” said Danielle Hale, chief economist at Realtor.com. “But it depends on which is more important: affordability or future job security.”
There’s no question that fear over a potential global coronavirus pandemic could have a negative impact on consumer confidence and lead potential homebuyers to delay their purchasing decision, since a home is a big ticket purchase. So far, the virus has spread globally with more than 82,000 cases and more than 2,800 deaths. And the World Health Organization just increased its global assessment of the coronavirus to “very high.”
“Uncertainty over the spread, severity, and length of the coronavirus outbreak adds to the challenge of estimating the impact on the housing market,” said Frank Nothaft, chief economist for CoreLogic. “Nonetheless, some economic impacts are clear. Economic growth will likely be slower this year than was previously thought. A recession in 2020 is unlikely but can’t be ruled out. The prospect of weaker economic growth coupled with investor ‘flight to quality’ in global capital markets has pushed long-term interest rates down.”
(Excerpt) Read more at yahoo.com ...
It should be pretty easy for the U.S. to pick up the slack in any building materials.
Forcing existing homes prices to go up!
Yeah geez you’d think we were a backwards country that didn’t know how to get things moving if necessary.
Never underestimate America.
So many have and lost.
because everyone is out buying masks and not housing.
In other news, the Coronavirus may have a negative effect on news media listenership due to people tiring of the frequent “the sky is falling” reporting.
“...wolf, wolf, wolf, wolf.....”
It amazes me how many angles they are playing to make this thing seem like the end of the world one way or another.
How about dog and cat food. Do we have to worry about being able to feed our pets?
Should we expect pestilence to be fleeing or avoiding China and coming to our shores instead?
I must have missed to articles on heating oil, gasoline, and natural gas being disrupted.
I guess I have something to look forward to.
d":^)
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The crews don't seen to be terribly, awfully, really concerned.
>>> It amazes me how many angles they are playing to make this thing seem like the end of the world one way or another.
https://youtu.be/1EtA0HrUrYM?t=41
LOL
Yeah, the plague...
Pass the tin foil
Ms. Fungus is full of crap. My mortgage rate for the next year just dropped and I’m saving about $2,000 a year on it.
The housing market is tight and there are a lot of buyers out there (mainly Obama era leftists who are supporting Biden or Sanders by getting large paychecks in the political field or the non-profit organizations funded by the Left to the tune hundreds of millions of dollars, esp. in the Green Movement, Climate Change Warriors, Criminal Justice Warriors, and anti-fossil fuel movements (different in scope from the Green Movement which is larger and aims for “life” changes, not just energy sources changes).
The Virus is not going to have much of an effect on anything other than less patronage of Chinese restaurants and travel to China or other infected places.
For the Lord’s sake— this is total utter BullShite!
Please stop this spewing offal from liberal apparatchik “writers” paid by the word.
There are going to be some potentially problematic short term difficulties from this virus but, as long as it does not kick the country into an economic tailspin we should do OK
Best guess is that the virus spread is slowed as winter ends and flu ( yes I know corona is not flu BTW) season ends so we will be given a reprieve til start of next season in fall. But who can know the unknowable.
For sure, China’s economic relationship with US is going to re evaluated and the strategic wisdom of our outsourcing virtually everything and anything to China is going to be challenged.
Longer term, this should hasten and enable President Trumps effort to re build American manufacturing. Timing is perfect given passing the new North American trade agreement. Up til now, Trumps efforts have been 90% pull and 10% push. The China issue is altering the dynamic to more and more pull and needing less and less push to make companies re evaluate far east options and take a closer look at a North American solution as strategic realities and supply chain security and not just using the rock bottom lowest cost producers in Asia becomes a concern
“The coronavirus has sent stock markets plummeting and no industry, including housing, is immune. “
Spin machine for “The Great Dem Hope Virus” is flailing to try to infuse as much panic as possible - market was under 25K for a bit but is projected to open at 26.7K today...
We have the largest forests in the world but they are locked up by the Fed.
Because there are tons of plywood factories...just laying around dormant. And, I thought this virus thing was over. That’s what three or four posters said me this morning.
If someone needs a house, I will volunteer to sell my house. You may not like my asking price, but I am willing to make the sacrifice.
Call my realtor at 800-HOWMUCH!??YIKES
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