Devastating Effects of Coronavirus on Real Estate Investments
The outbreak of the coronavirus and the spread of the disease to other parts of the world have caused rising fears of a global pandemic, with an immediate harmful impact on real estate markets.
Moreover, vulnerability increased over the course of last year, making prospects for early 2020 all the more uncertain. The US, the world’s second-largest economy, appeared relatively resilient now, but 2.1% real GDP growth in the fourth quarter of 2019 hardly qualifies as blooming.
The lack of Chinese demand is also likely to take a toll on the US economy, where China plays an important role as America’s third-largest and most rapidly growing export market. The sharp plunge in a preliminary tally of US purchasing managers’ sentiment for February hints at just such a possibility and underscores the time-honored adage that no country is an oasis in a uncertain global economy.
The coronavirus is undoubtedly causing a significant disruption to economic activity in the US. The magnitude of US growth is highly uncertain, as it depends on the extent that it spreads, the length of contagion, the measures taken by the US to curtail the risk of infection and the timeframe until an appropriate vaccine has been developed. This uncertainty with respect to the ultimate impact on economic activity will keep a real estate market volatility higher.
But as long as the outcome of the current situation is highly uncertain, you should continue to buy and sell in “pock……
Moreover, vulnerability increased over the course of last year, making prospects for early 2020 all the more uncertain. The US, the world’s second-largest economy, appeared relatively resilient now, but 2.1% real GDP growth in the fourth quarter of 2019 hardly qualifies as blooming.
The lack of Chinese demand is also likely to take a toll on the US economy, where China plays an important role as America’s third-largest and most rapidly growing export market. The sharp plunge in a preliminary tally of US purchasing managers’ sentiment for February hints at just such a possibility and underscores the time-honored adage that no country is an oasis in a uncertain global economy.
The coronavirus is undoubtedly causing a significant disruption to economic activity in the US. The magnitude of US growth is highly uncertain, as it depends on the extent that it spreads, the length of contagion, the measures taken by the US to curtail the risk of infection and the timeframe until an appropriate vaccine has been developed. This uncertainty with respect to the ultimate impact on economic activity will keep a real estate market volatility higher.
But as long as the outcome of the current situation is highly uncertain, you should continue to buy and sell in “pock……