Coronavirus & the Real Estate Market
Recent volatility in the stock market amid growing coronavirus concerns has many people feeling apprehensive. Dramatic swings (closing high one day, low the next) for the week ending March 6th have left some consumers feeling anxious with respect to their future spending. But in times of uncertainty, it’s wise to train our thoughts on that which has proven effective and true time and again despite economic seasons.
“Despite a 12% decline since the S&P 500 peaked on February 19, what we’ve seen is a correction, not a crash,” says Greg McBride, CFA, Bankrate chief financial analyst. “This brings the market back to where it was in mid-October, just four and a half months ago.” In other words, instability in the moment often feels unsettling to the individual, whereas the economy as a whole generally weathers instability quite well.
STAY CALM / PLAN YOUR NEXT MOVE:
Considering your personal, long-term plans is more important than ever when there is economic insecurity of any kind. Traditionally, there are 3 options when it comes to the real estate market: Buy, sell, or hold! Only you can decide which strategy is right for you. Maybe it’s a great time for you to buy, because you have cash reserves and a long-term mindset. Conversely, you may need cash quickly, and so selling might help you to accomplish that goal. Perhaps the best course of action for you would be to do nothing at all, and just wait and see what happens. No realtor can tell you what’s right for you. But, knowledge is power. I would be happy to supply you market information to help you more confidently make a decision that works for you.
Fear is a liar, and it makes for a very lousy leader. Unexpected market volatility can have the unfortunate effect of deterring consumers from the very actions they might otherwise should take to remain on solid financial footing. It’s best to remember that the time-tested investment strategies of the past are a good indicator of future performance. Real estate remains the best overall investment strategy in the U.S. for many reasons. If you’d like more information as what those reasons are, give me a call and I’d love to discuss them with you!