Local Real Estate Industry Bracing For Potential Impact Amid Coronavirus (COVID-19)
Many things have changed in a very short time throughout the spread of the coronavirus (COVID-19).
Should we be worried about the real estate industry and is now the time to refinance your home?
You wouldn't know it by looking down the street but many real estate agents and lenders are bracing for potential impact.
“We know the impact is coming,” said Robert Gideon II, co-owner of NextHome Central Real Estate. “How big of an impact and where and how it hits is still kind of a mystery; we're taking it day by day.”
There are several concerns Gideon II has. First is demand.
“Demand for housing could take a hit due to basically the stock market decline and people’s ability to make down payments to make big purchases because of that erosion, we might see a slowdown in buyers,” said Gideon II.
What about those already with homes? What isn’t helping matters are more and more people being told not to report to work.
“The ability for people to make mortgage and rent payments could have an impact on our inventory,” said Gideon II. “(We) could see an increase in inventory because people are unable to make their mortgage or rent payments.”
Many homeowners locally are refinancing and saving money now that the federal reserve lowered interest rates.
Experts urge you to be cautious because not every lender is passing along the savings.
“Should you refinance? I can't answer that for you specially but is it worth a call to your local lender or local realtor? Yes,” said Gideon II.
Experts are confident things with COVID-19 and the oil and gas industry will return to normal but not without a few speed bumps along the way.
“People need to remember that every single time we've seen a downturn in our economy, our market has recovered 100 percent of the time,” said Gideon II.
For anyone thinking about buying or selling a house right now, it is very important talk to a professional.
Experts urge you not rush into anything.