The coronavirus panic has officially settled into the real estate market. Lawrence Yun, chief economist of the National Association of Realtors, on Monday said the group has seen a drop off in buyer traffic that it attributes to fears of the spread of so-called Covid-19.
In a statement issued to real estate reporters, Yun said, “The coronavirus is leading to fewer home buyers searching in the marketplace, as well as some listings being delayed. In the latest flash survey, 11% of REALTORS indicated a reduction in buyer traffic and 7% are reporting lower seller traffic when asked directly about the coronavirus impact on the market. Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to home buying and selling. The stock market crash is no doubt raising economic anxieties, while the coronavirus brings fear of contact with strangers. At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions. It is too early to assess the likely impact as to whether lower interest rates can overcome the economic and health anxieties. But the survey is implying in the short-term at least that home sales will be chopped by around 10%, compared to what would have been the case, due to the spread of coronavirus.”
Financial markets swooned on Monday, with the Dow Jones Industrial Average falling almost 8%, or $2,013.76, on the session. The primary driver of the decline was a sharp decline in oil prices due in part to fears over the virus but mostly to an announcement over the weekend by Saudi Arabia that it planned to continue pumping oil into a depressed market with Russia expected to follow suit.
