The Pandemic and the Market

 

Below are the market statistics from February. What is of note here is that we have had a flood of new inventory in the last week, and we're now up to 2,147 Active listings and 2,087 Pending listings. I'm interpreting this as the demand is still keeping up with this influx of inventory. No one knows what will happen over the coming months, but one thing we do know: Austin will bounce back after this with a vengeance! If buying was in your plans for this year, the next few months could prove to be opportune for finding a great home with much less competition! 

 

I've collected some articles that address how coronavirus may be affecting the real estate industry and everything else, for that matter. 

 

Austin economist Angelos Angelou, head of AngelouEconomics, said the Texas capital is as vulnerable to a serious economic downturn as anywhere else, but will be one of the first to emerge from any recession.

 

February was another strong month with only one month of inventory in the City of Austin and a 6.8% increase in sales.

 

How coronavirus may change the world permanently

A crisis on this scale can reorder society in dramatic ways, for better or worse. Here are 34 big thinkers’ predictions for what’s to come.

"Why are rates higher? Rates are up due to volatility and uncertainty. Institutional and individual investors are taking money completely out of all avenues and parking cash on the sidelines. That’s why you are seeing stocks AND bonds drop in value and rising yields….AKA higher mortgage rates.

 

My prediction is that it won’t last forever. In fact we are already seeing rates improve slightly this afternoon. When we turn the corner on this virus scare, you will see the biggest stimulus ever and the markets will all come roaring back. "When" is the question....Also...4.0% is NOT a terrible rate! It's cheap historically!"

 

John Schutze, Regional Director

Texas Loan Experts