Tuesday, March 24, 2020

Coronavirus is a Natural Disaster of Immense Proportions that Impacts Real Estate - Latest News - 3-24-2020

In the past 3 months COVID-19 aka the coronavirus pandemic has upended all beliefs regarding the speed in which fear can grip the world. Coronavirus is a natural health and economic disaster of immense proportions.

The impact of the coronavirus pandemic upon real estate will be felt for years to come.

First. The negative economic effects of the coronavirus has caused the Federal Reserve to use every available policy tool in its arsenal including the lowering of interests rates close to zero. The U.S. Government is poised to pass an almost 2 trillion dollar stimulus package to save the economy. However, the question remains: Will all of the monetary and stimulus actions be enough?

Fed seen cutting interest rates to 0% soon in bid to help weather coronavirus storm

Monday’s dramatic Federal Reserve announcements, explained

Negotiators on ‘2-yard line’ on coronavirus economic rescue plan

Second. The U.S. has restricted travel from Europe and China. Cities and states are declaring emergencies. Business, marketing, trade and sporting events are cancelled. Our ability to engage with each other, to move around or to gather freely has become restricted.

Trump clarifies comments on Europe travel after initially saying restrictions applied to cargo, not just people

Markets suffer record meltdown as global coronavirus alarm grows

Coronavirus: Which countries have travel bans?

Third. The stock market has fallen to levels not seen since the Great Recession. China's supply chain is frozen. Businesses and corporations are experiencing cash flow and debt problems. The lack of cash flow will lead to job losses. Citizens are nervous about their families and resources so they are beginning to "hoard". Citizens are nervous about health care and job security. The recent branding of the phrase "social distancing" as a means to prevent the spread of coronavirus requires citizens to stay away from crowed places and mass events. It also requires keeping a distance (6 ") between you and your neighbor. Yet if people are not out and about, socializing, travelling and spending money then the economy slows down. Less economic activity means less money for real estate development and investment.

New York real estate hit by coronavirus, market decline

How coronavirus is impacting the housing market

As Coronavirus Spreads, Real Estate Deal making Slowed By Travel Restrictions

‘Social distancing’ comes at a massive economic cost, but it’s now the only way to save millions of lives.

National Association Of Realtors Survey Shows How Coronavirus Has Started To Impact The Real Estate Market

Coronavirus’ Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term

It is our hope that the ultimate effects of the coronavirus will not lead to a worldwide depression. Instead it is our hope that the strength of our communities, our governments and our businesses will lead to the fast recovery of our collective health and economy.

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