You’ve probably been watching the stock market and the media panic over the spreading of a suspicious virus, possibly released from a lab in Wuhan China. Lots of manufacturing, including vaccine manufacturing, is performed in China. Because this virus appears to be 20-30 times more deadly than the flu, fear is setting in, and the world is having to step back and evaluate how this will impact the market place, including tourism, spending, and investments. Suddenly, day-to-day living changes as a “consumer”.
Fear not though, the world seems to be realizing that Coronavirus has made its debut and is here to stay. It is likely that we will have the common cold, flu, and Coronavirus season from here onward. Many investors have pulled out of stocks and moved into bonds, others are waiting it out, and many people are investing in the items that the “panic consumers” are stockpiling or using more of, such as pharmaceuticals, cleaning products, facial masks, vaccines, gloves, etc. While the market takes a breather and sees that the apocalypse has not occurred, we should see a temporary market reset and subsequent rebound. The European Union (EU) is losing approximately 1 billion dollars per month in tourism, and this has caused the EU governments to react by pumping money into the economy. Consequently, on March 2, 2020, the market bounced back slightly and stabilized, at least for now.
While some “lower- risk tolerant” consumers in the Raleigh market remain “on the fence” about home buying, or have paused entirely, others see how we are in a 7+ year low with interest rates, and they are rushing to find the property they’d like to “lock in” at these historic lows. I do believe we will see a bit of a pause in the economy, as if we were taking a deep breath, but that the market will barely skip a beat. The Raleigh, NC, and surrounding areas known as “RTP” are pharmaceutically and technologically industry driven, which is a big plus, because unlike other areas, this area doesn’t rely on tourism.
If you are looking for more information, or a real estate market opinion on the Coronavirus and its effect on the housing market, please feel free to contact myself, the Broker-In-Charge/Owner of Team Anderson Realty, Erica Anderson at: 919-610-5126 or e-mail: Erica@TeamAndersonRealty.com.