Last month, some economists were predicting a likely recession by 2021. But it was all a guessing game. The economy was white-hot, and then Corona came to town. Consumer spending, business closings, furloughs and social distancing are all pointing to a recession.

This COVID-19 pandemic represents an event economists have never encountered before. During the Great Recession of 2007-2009, much of that calamity caused so many to lose their homes. But this is a complex iteration comprised of many different factors, including the shutdown of government and industry all at the same time.

With the Great Recession, the primary cause was the proliferation of subprime mortgages giving homeownership to those who couldn’t afford it.

So when buyers all over the place didn’t have to put any money down, it didn’t take much to push markets over the edge, resulting in an estimated 9.3 million homes lost through foreclosure.

The question of what ramifications this economic colossus will have overall is yet to be seen? With interest rates at record lows, and less buyers competing for listings, the question is, will there be a shutdown to a great extent on the number of real estate transactions.

This may be a good time to buy.

Economic Outlook
Right now, there is very little job security except if you are a first-responder, making the ability to qualify for a mortgage problematic. Many of the buyers who would have been looking at homes now are holding off, in a wait-and-see pattern.

What might be disconcerting is the fact that the effect the coronavirus had on Chinese real estate might hold true for America. China’s market saw home sales and home construction fall between 30-50% in the first two months of this year.

Agents
Still, people are going to need somewhere to live, and agents who can provide showings through virtual tours for individuals with secure finances and incomes will find homes that suit their checklist.

In retrospect, this may turn out to become more of a buyer’s market as the rate of infections levels-off, and temporarily lowering prices because of suppressed demand.

Anthony DiMaio doubleriver@gmail.com

Wed, Feb 20, 2019, 7:47 AM
to me

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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