Impact of the Coronavirus on the U.S. and Brevard Real Estate Market
By Realtor Bobby Freeman
The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?
For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
According to the National Association of Home Builders (NAHB):
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed-rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
“The facts are interest rates are historically low and perhaps will drop more causing home buyers to have lower monthly mortgage payments,” says Jennifer McCoy, Broker/Owner of McCoy-Freeman Real Estate serving all of Florida’s Space Coast.
In my professional opinion, at this time I don’t see any negative impact on the residential market especially here on Florida’s Space Coast. Our underlining economy is outstanding and Florida continues to be a great place for real estate investors both locally and internationally.
In fact, according to Roofstock, a popular online marketplace for real estate investors has seen a 450% increase in traffic from Asian countries in the past month.
The bottom line is the full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world.