12 Mar WHAT IS THE EFFECT OF CORONAVIRUS ON THE HOUSING MARKET?
There is growing concern about the spread of Covid-19 or Coronavirus and it may be helpful to have some advice on certain questions.
We are not anticipating a particular problem in the housing market. The main negative effect will be amongst the elderly, or those with underlying health conditions and some of these may want to stay out of the market for the time being. There may also be a diminution of “casual” viewings, but serious buyers and sellers are continuing as usual.
The question of the fall in the stock market arises, but it is our opinion that this will resolve itself in due course, particularly when the rate of the spread of the virus starts to slow and then recede. Already, we have seen reports of individuals buying, taking advantage of the low share prices, which will inevitably rise again.
The drop in the Stock Market has been largely due to a similar reaction, to those who have been stripping the supermarket shelves of toilet rolls and baked beans, ie. unreasoned panic. When the rate of spread of the virus slows, activity will resume, with enthusiastic buying of shares which, are currently greatly undervalued. This will cause prices to rise rapidly, moving towards a recovery.
The main message therefore is to be reassured that ‘life will go on’ as before, with serious sellers and buyers, continuing to be active.