Coronavirus Jax Market Effect
Updated: Mar 13
Q. Will the coronavirus affect our local housing market here in Jacksonville?
A. Although it's too soon to understand the impact of the virus on our local market, it is having an affect on real estate nation wide. If you remember post 2008 and how Jacksonville was affected, the coronavirus is giving off an eerily similar feel. Just this week our National Association of Realtors canceled a conference in California and other real estate brokerages are following suit by postponing major events. And with the stock market in correction mode, some buyers are watching and waiting to see how home prices react. Only time will tell the true impact of the virus on our local market.
However, the National Association of Realtors anticipates a 10% decline in home sales nationwide. That does not mean Jacksonville will be hit that hard. It just really is too soon to tell, but the dominoes are starting to fall. Here is the press statement our National Association released this week:
“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."
Have a real estate question or need some sound advice? Call or text Phyllis Staines at (904) 476-7653 or email firstname.lastname@example.org. Every question will receive a response and may be chosen to appear in Saturday's Times Union newspaper.