Real estate’s clobbering runs wide and deep. "People would rather not go out and mingle," says Kong, who has heard some closings had to be postponed. “Demand is heavily influenced by employment numbers, and those numbers will depend on how long our employers can sustain under shelter-in-place orders.”. Recently, the luxury market hasn't been in the best of health—and some folks fear the coronavirus scare could cause a relapse. JOHANNES EISELE/AFP via Getty Images. Round Rock, Georgetown, Cedar Park, Pflugerville, Hutto, Leander, Liberty Hill areas. These affluent buyers are worried about medical care, strikes, and more unrest back home, and are looking to the U.S. as a safer option. "The upper-end market can expect to be softer as a result.". For the best experience, please enable cookies when using our site. Disclosure: The Texas Association of Builders, Texas Realtors and the Texas A&M Real Estate Center have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Experts are concerned for … "That was shocking to me.". Comptroller Glenn Hegar said last month that the state's unemployment rate could be headed for double digits, which could exceed the historic high of 1986's 9.2% unemployment rate. U.S. Real Estate Market Shows Symptoms of Coronavirus Effect: What You Need To Know. But there weren't nearly as many Chinese buyers shopping for homes in the U.S. back then. But with the temporary ban on any foreigners who have been in China in the past two weeks, and cancellations of many flights from China to the U.S., a lot of would-be Chinese buyers can't get into America, putting any home-purchase plans they may have on ice. Already, experts are seeing slowdowns in home showings — which are now largely done virtually — and expect that permits for new construction might also drop. Rates dipped 9 basis points to 3.51% for 30-year fixed-rate loans as of Jan. 30, according to Freddie Mac. While that may sound impressive, it actually represents a 56% drop from the previous 12-month period. Amid market turmoil, investors tend to pull money out of the stock market and park it in safer, more stable U.S. Treasury bonds. For regions whose residents rely largely on the energy industry for work, like Houston or the Permian Basin, or on cross-border trade, like the Rio Grande Valley, home values and sales may dip more than in other Texas regions. "I don’t think it will have any impact unless it turns into a worldwide disaster," he says. “And it has a multiplier effect into the rest of the economy, from moving companies to furniture stores," Torres said. Home Buyers Reveal: 'What I Wish I Had Known Before Buying My First Home', Selling Your Home? “I look at this as something that will last as long as the virus does," says New York City–based real estate appraiser Jonathan Miller. But once the virus is under control, the real estate market will likely go back to normal, more or less. by Juan Pablo Garnham And when bonds are strong, mortgage rates fall. “[Chinese] people who are wealthy may feel tired of the perception of China as being a third-world country," says NAR's Yun. "We don't know what's going to happen.". “This is going to be an important issue that we are going to face after the sudden stop [of the economy] ends.”. “Mortgage debt will continue to exist and is not going away,” said Torres. She previously wrote for a Financial Times publication, the New York Daily News, and the Associated Press. Do you value our journalism? COVID-19 Case Map; Coronavirus in Texas The Texas real estate market is headed for a slowdown. But some fear these policies are postponing a larger problem: the delinquencies that might come from unemployed homeowners. But even that might not be enough for people who are unemployed for longer periods of time. “That’s when you can have falling prices,” Torres said. That’s a sudden about-face for what had been, until now, one of the most dynamic real estate markets in the country. Get quick and easy access to your home value, neighborhood activity and financial possibilites. Financial supporters play no role in the Tribune's journalism. 5 Reasons You’ll Want a Veteran-Friendly Real Estate Agent, Bundle Up! Buyers from China spent about $13.4 billion on U.S. homes from April 2018 through May 2019, according to the NAR's most recent data on foreign buyers. Chinese buyers may flock to the U.S. again for the same reasons. Getty. Don't Neglect These 6 Maintenance Tasks—or Else, Debunked! "China has been the most important source of foreign demand for real estate," says Lawrence Yun, chief economist at the National Association of Realtors®. As a nonprofit newsroom, we rely on members to help keep our stories free and our events open to the public. During the resulting panic, mortgage interest rates also dipped. unemployment rate could be headed for double digits. (Realtor.com defines luxury as $1 million-plus homes in most of the country, although that threshold can be higher in the most expensive cities like New York and San Francisco.). According to the Houston Association of Realtors, new home listings of single-family homes decreased 4.8% last month when compared with March 2019. Winter’s Home-Buying Game Has Changed. This site is protected by reCAPTCHA and the, Sorry, we were unable to share this article. We will discuss the latest Austin real estate market trends and forecast for 2021. They have to make other arrangements.”. “We definitely will have a slowdown, but the question is how much and how long,” said Scott Norman, executive director of the Texas Association of Builders. By Clare Trapasso | Feb 6, 2020. It may seem perplexing that a virus that originated in China (and where most of its nearly 500 fatalities occurred) could result in lower mortgage interest rates an ocean away. How 2020's Presidential Candidates Plan to Help You Buy a House (or Not), Want to Get Healthy in 2017? Contact her at email@example.com. Yes, Houston would be hit harder, but Midland-Odessa would be hit even more,” said Torres. ©1995-2020 National Association of REALTORS® and Move, Inc. All rights reserved.realtor.com® is the official site of the National Association of REALTORS® and is operated by Move, Inc., a subsidiary of News Corp. Clare Trapasso is the deputy news editor of realtor.com.
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