03/18/2020
These are unprecedented times provoking a great deal of anxiety in our country. The COVID-19 pandemic is having an impact not only on global financial markets, but on our daily lives. The government is taking unprecedented steps to “flatten the curve” by shutting down business, closing schools and urging us all to isolate ourselves home. With the stock market plunging into recession territory, people are wondering what the impact will be on Orange County real estate values.
Right now, the only certain thing in the market is uncertainty. We do not know how long the quarantines will last, how many people will succumb to the virus or if unemployment will skyrocket in the county. All of these factors can cause a sharp decline in home prices if people are put in a position in which they must sell their homes.
Bear in mind, though, that in times of uncertainty, people tend to do nothing. Those who may have planned to list their homes this spring may decide to wait. We’ve had a very low inventory of homes for sale in Orange for several months. That trend may continue, which will keep prices up.
The good news for buyers is that the Fed recently cut interest rates to near zero, which may make it the best time in history to have a mortgage.
No matter what happens, I am here for you. As a real estate agent in Orange County for the past 35 years, I have helped my clients navigate numerous times of uncertainty: the Persian Gulf War in 1990, the Orange County bankruptcy in 1994, Y2K, the Dot Com Crash of 2002, the Great Recession from 2007 to 2009 and foreclosure crisis from 2006 to 2012. I assure you that we will get through this COVID-19 crisis, too. Opportunities to buy or sell real estate present themselves even in the most turbulent times. Whether you’re thinking of buying or selling, or you need a referral to a lender to refinance, give me a call so we can discuss your personal situation.