Despite pandemic headlines, local real estate fundamentals continue to be strong.
An overwhelming sense of panic has spread over Seattle residents as more and more COVID-19 (now commonly referred to as 'Coronavirus') cases are being confirmed in Washington State and a global pandemic has been announced by the World Health Organization.
In the week since King County became the epicenter of the U.S. coronavirus outbreak, social and economic activity has diminished as implications have been made on the economy, the stock market, consumer confidence, and everyday life. Local restaurants have shut down, large sporting events have been suspended, and all travel to and from Europe has been banned until further notice. The effects of the Coronavirus on companies and consumers alike have been devastating to some industries. However, it is unlikely these negative effects will imprint on the Seattle housing market too.
Despite the frenzied panic that has seemingly taken over the city, this activity has had little impact on the local housing market and the real estate industry as a whole. While the news is full of COVID-19 and the stock market correction, the housing market shows no signs of being largely affected as we enter prime real estate selling and buying months. Historically low-interest rates should help the housing market sustain strong momentum as this outbreak continues, although it is still too early to tell if the broadening effects of the coronavirus will sideline buyers.
From a real estate perspective, there may be a speed bump in the market caused by media headlines and the pandemic overall, although it's too soon to tell. We can expect the impact would see fewer consumers stepping out as the media heightens. Those who are affected by the stock market turbulence may also hit pause on any home buying or investment decisions.
If a situation like this were to arise, the market almost always recovers as quickly as it is impacted provided the fundamentals are in place. It's important not to panic and to know that many positive factors are influencing the market right now, including historically low mortgage rates and job/population growth within the Seattle/Bellevue area. The bottom line? KEEP CALM AND CARRY ON!