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?
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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
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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.
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‘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.