The COVID-19 virus also referred to as the Corona Virus-19, has, over the past few weeks, brought various cities across the US to a standstill. It isn’t hard to see how the spread of the COVID-19 virus could soon result in a similar situation to what we are witnessing in New York, Los Angeles, etc. Not only will it change every facet of our lives for the next couple of months, but markets like the housing market in Atlanta could be adversely affected too.
We are already seeing the effects take its toll on Atlanta’s tourism industry, as worries about the illness spreading have led people to sit back at home instead of traveling. Not to mention that significant lures for visitors to the city like the NCAA basketball tournament have been canceled.
As we see the government and the health department advising what’s called “social distancing,” which is a method of keeping yourself in isolation, by avoiding crowds, various local businesses like cinemas and bars, companies that thrive on crowds are feeling the brunt of the outbreak.
However, all may not be lost despite how bleak things may predictably look. In terms of Atlanta’s housing market, things aren’t slowing down, as many predicted it would like other cities. If anything, demand within the housing market for rentals and purchases is high, with online brokerages seeing a steady stream of calls and inquiries via their websites.
Does Outlook on Home Sales in Atlanta Look Positive?
The recent panic over the spread of the coronavirus has led to the FED cutting interest rates to their lowest levels in 50 years. That means it is possible for buyers to get a 15-year loan for as little as just 2.79%, with a 30-year loan at a hair under 4% percent.
Since the FED cut, a report from March 11 shows that mortgage applications have gone up by 10% percent compared to this time around last year. The statics suggest that there is a positive shift in the market for the better. Keep that in mind against the backdrop of the situation escalating each week.
The real estate market looks good enough for cautious investors to pull money out of stocks and bonds to invest in Atlanta’s real estate. Plus, Atlanta continues to have a solid job market, coupled with the lowest interest rates since the 60s. We might see a boon in the local market, or at least that’s what some experts expect.
Sectors that are struggling and will continue to struggle include the hospitality, travel, and leisure industry. The decreased tourism will probably hit the hotel sector the hardest, with numerous sporting events and festivals being canceled or at least postponed.
Experts Believe It is a Sellers’ Market
As of late, many realtors and local agents have reported a certain decline in both buyer and seller activity. According to experts, the precautious nature of the stock market could negatively impact the housing industry as a whole, so it isn’t just Atlanta.
Even though it is seen as being a sellers’ market, many people are cautious about purchasing properties or making large investments. There is talk of a possible recession, and nobody knows whether it will be a mini-recession that may blow over as soon as the COVID-19 threat is over or will it have long-term repercussions. The fact that the entire country is in a flux of uncertainty means that most people don’t know whether buying or selling property is the right decision.
Realtors across the metro Atlanta area have also had to adapt to the rapidly changing situation owing to the COVID-19 virus. Open houses are being canceled, many are requiring that buyers wash their hands before they are allowed to tour homes, and others are looking for ways to show prospects homes virtually.
Because the situation with the COVID-19 virus is still fluid and information seems to be changing every hour, it is impossible to recommend or even predict what will happen next. It is hard to predict how much of Atlanta’s housing market will be affected until the full economic impact and its implications become clear over the next couple of weeks or months.
More Shutdowns Expected
While Atlanta has remained comparatively safe from a total shutdown, it is only a matter of time before it happens, according to many experts. Government officials have no idea how to deal with the widespread concerns that the disease is causing, and with Atlanta expecting shutdowns like many other states, things don’t look all that good at least for the time being.
Despite the expected quarantines, curfews, and lockdowns, suffice to say that Atlanta’s real estate market is amongst the most robust in the US. That’s why there is a reason to think that recovery will be as robust as the market itself has continued to be for many years prior to COVID-19.