The coronavirus is causing great panic at the moment. But what will the coronavirus do to the housing market? No more shaking hands at the notary's. Wash your hands often and thoroughly. Keep your immune system in good shape, and disinfect your house thoroughly after a round of viewings. Take your temperature before you go to a viewing.
Contents
- The impact of the coronavirus
- The American stock market
- Smart to buy shares on the stock market now?
- What does this mean for the housing market?
The impact of the coronavirus
At the moment we have around 31,000 house hunters in Utrecht. New builds and existing homes in Utrecht together make up a supply of around 1,000 homes. So the pressure is enormous. But will this pressure ease because of the spread of the coronavirus? The stock market is falling sharply because of the coronavirus. There's great fear about the financial consequences of the coronavirus. The outbreak of the disease in Asia may be depressing demand for fuel. Saudi Arabia said it was monitoring the situation closely, but was seeing little difference in demand for oil so far. The fall in oil prices is causing enormous movement in the market.
The American stock market
The falling confidence in the economy was also clearly felt on the American stock market. Below is a short summary of Monday's trading.
- On Wall Street the Dow Jones index plunged 7.8% on Monday after the sharp fall in the oil price.
- Shortly after the opening, trading on Wall Street was temporarily halted.
- The US central bank is making more money available to curb the panic on the financial markets.
- The financial markets are going through one of their worst days of losses since the collapse of Lehman Brothers bank in 2008.
- President Donald Trump thinks the lower oil prices are good news for consumers.
Smart to buy shares on the stock market now?
Is it smart to buy shares on the dip now? Perhaps you can cash in and later put the money into a new home? Or does this dip indicate that the tipping point is now in sight and a giant recession is on its way?
- The further spread of the new coronavirus in countries outside China caused panic on the financial markets in recent weeks.
- What stands out above all is the unprecedented speed at which stock markets fell.
- A possible bottom in the stock market will probably coincide fairly closely with the peak in global infections.
- In the short term, the question is whether share prices can fall even further.
- For investors there's plenty of reason to stay on the cautious side for the time being.
What does this mean for the housing market?
For now, the madness isn't over. In fact, interest rates may fall even further. At the moment, with the very high demand and relatively cheap money, the housing market isn't in danger yet. However, it does of course get people thinking. People wonder whether the housing market is going to collapse and whether they'd be wise to buy. At the same time, the housing shortage remains severe and the alternatives are limited. I expect that prices may rise less steeply, and there may be some stabilisation. The collapse of the market? I expect that will take a while yet. If the economy declines, there will be fewer people with permanent contracts and good jobs. Demand is so high that there will then be a shift. The housing shortage isn't over with this crisis.
Would you like to sell your home? I'll come round to give you tailored advice. Show potential buyers, with solid evidence, that they don't need to worry at all, and win them over to bid well, ‘the old-fashioned way’. Exactly as has been the case in recent weeks. With the right use of marketing, we'll sell your home as the best on the market, NOW too.
