Worried about how COVID-19 is gonna affect real estate? Is this the start of a recession? Is the world ending?
I think everyone can agree that 2020 has not been the best year so far. To be frank, here in Nashville, It’s SUCKED! Make that Tennessee for that matter. We’ve had so much rain, it’s flooded areas. We had a terrible tornado hit our own backyards all over Nashville, Cookville and just recently Chattanooga. That’s not even counting the dang CORONA spread killing thousands of people. What gives?! So far the only plus I see to the corona for me, is that my yard looks fantastic and I got to fulfill a dream of mine to cut someone’s hair! (It was as fun as I thought it would be and hopefully no one will point out the gap at the back of my hubs head.)
As for real estate, personally, business may be slightly slower since we are on lock down, but that’s mostly out of fear and precautionary measures. I truly feel that the people who do HAVE stable jobs, that are working from home and just inconvenienced, those people, are really still moving forward with life as planned. Unfortunately, that doesn’t include everyone. Restaurants, entertainers, tourism industry jobs, those people are really seeing the effect of this virus. The good news is that this will end. Life will get back to normal and gosh, I think everyone that can even remotely afford to go somewhere, whether on vacation or out to eat is gonna be out the door as soon as we are allowed. Everyone is so tired of being at home! Those actions will all help. Hopefully the government aid and local support will help many places bounce back. I will certainly do my part.
What are the experts saying?
Robert Dietz, Chief Economist with NAHB- “The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds – which it will at some stage – housing is set to help lead the way out.”
Ali Wolf, Chief Economist with Meyers Research- “Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
According to the National Bureau of Economic Research:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.
“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”
If you are in the position to buy or looking to sell, it can still happen. People are making the moves every day. Have questions or need advice? I can help! Reach out. Let’s chat.
Stay safe and Be well! Remember, the doors to the world will open again soon!