Mondays with Matthew: How Housing Has Fared Amid COVID-19
On this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes several aspects of the housing market to see how it has fared over the past 16 weeks amid COVID-19 – Some really great graphs in Housing Market and Sales raising in Home Prices. Mortgage Rates as low as 3.03% in over 50 years. Wow!
Why the Stock Market Correction Probably Won’t Impact Home Values
With the housing crash of 2006-2008 still visible in the rear-view mirror, many are concerned the current correction in the stock market is a sign that home values are also about to tumble. What’s taking place today, however, is nothing like what happened the last time. The S&P 500 did fall by over fifty percent from October 2007 to March 2009, and home values did depreciate in 2007, 2008, and 2009 – but that was because that economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.
This time, the stock market correction is being caused by an outside event (the coronavirus) with no connection to the housing industry. Many experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11. As an example, David Rosenberg, Chief Economist with Gluskin Sheff + Associates Inc., recently explained:
“What 9/11 has in common with what is happening today is that this shock has also generated fear, angst and anxiety among the general public. People avoided crowds then as they believed another terrorist attack was coming and are acting the same today to avoid getting sick. The same parts of the economy are under pressure ─ airlines, leisure, hospitality, restaurants, entertainment ─ consumer discretionary services in general.”
Since the current situation resembles the stock market correction in the early 2000s, let’s review what happened to home values during that time.The S&P dropped 45% between September 2000 and October 2002. Home prices, on the other hand, appreciated nicely at the same time. That stock market correction proved not to have any negative impact on home values.
If the current situation is more like the markets in the early 2000s versus the markets during the Great Recession, home values should be minimally affected, if at all.
Hey friends, family and clients….PLEASE help us share the warmth for our Coat and Blanket drive this winter by bringing new or gently used kids, teens, adult-sized coats and/or twin-sized blankets.
We invite you to join us in the effort to keep our community warm this winter. Please drop them off at our Windermere Realty Trust Coast offices from NOW to DECEMBER 18, we are open 7 days a week. Monday through Friday 9-5 and Saturdays and Sunday 10-4.
We will be closed after 1pm November 27 and we will re-open on November 29 for Thanksgiving festivities. We wish everyone a Happy Thanksgiving.
Gearhart office is 588 Pacific Way (503) 738-8522
Cannon Beach office is 255 N Hemlock Suite B1 (503) 436-1027
You can ask for Kristen Benton 503-741-0262 or Dana Weston 503-738-2839 if you have any other questions.
We thank you all in advance!
Windermere’s community of agents and franchise owners is our greatest asset. They are inspired producers, continuously in pursuit of mastering their craft, building thoughtful relationships, and make their communities a better place to live.
Once we know what you love, our agents have the compassion to find it for you.
Call our offices today, Gearhart 503-738-8522 or Cannon Beach 503-436-1027.
We are leading our agents into a better future Windermere offers our agents a wide array of programs to help them provide a full-service, high-touch experience to their clients.
A grand entrance to this well appointed 3BR 2.5BA and tastefully landscaped home reveals vaulted ceilings, arched doorways, a gourmet kitchen with dining nook, granite counters, glass subway back splashes and hardwood in a quiet location with room for a shop or RV garage on the spacious .69 acre lot bordering nature conservancy land. With a master suite on the main floor this home has diversity for aging in place. Simply delightful. Make it yours before it’s too late! Small farm animals no problem!
North Coast Rentals is affiliated with Windermere Stellar and has moved its operation to the Windermere office located at 588 Pacific Way in Gearhart Oregon. Go to our website and search for rentals here.