Today there is an overwhelming amount of uncertainty with the coronavirus and the stock market. While we can't predict what will happen in the coming months, what we can offer is helpful guidance to our clients so they can make informed decisions in these changing times.
THE CORONAVIRUS
Whether you believe it to be a serious issue or not, it is our moral duty to do what we can to protect those more vulnerable to illness such as the elderly and immunocompromised. The coronavirus is serious, but there is no reason to panic if we take the recommended steps to prevent infection and the spreading of the disease. Wash your hands often and stay out of public places as often as possible.
THE IMPACT ON THE STOCK MARKET
Propelled by fears of the coronavirus, stock losses steepened. The Standard & Poor's 500 entered a bear market for the first time since the financial crisis and the Dow endured its biggest one-day percentage drop since the 1987 crash.
What we know right now.
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History shows that periods of stock market volatility can often times be good opportunities for real estate.
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Investment in the real estate market is a more reliable long-term asset. Take caution when investing into the stock market during inconsistent times.
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Interest rate levels are at an all time low and quite possibly could continue to decline.
THE IMPACT ON THE LOCAL REAL ESTATE MARKET
What does this mean for buyers?
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As far as financing borrowers' loans go, it's a great time to buy a home in Sonoma and Marin. The best borrower buying opportunity since 2009.
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Dropping interest rates are giving buyers a break, for example a $500,000 loan is $300 per month cheaper than last year.
What does this mean for home sellers?
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Low levels of inventory paired with record low interest rates have created strong buyer demand.
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In the current market, the first ones out are going to fare the best. Sellers are currently seeing multiple offers and higher than expected selling prices.
Our advice?
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Interest rates are at record lows. Now is a great time to buy or to discuss refinancing your home mortgage with a trusted loan consultant. Find out if you can save hundreds a month by refinancing your home loan.
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If you've been thinking about making a move this year, now is a great time to get the conversation started on your next steps. Contact us to learn more about the current real estate market and how we can help guide you to make a smart move.
As always, please don’t hesitate to let us know if we can be of assistance in any way. We wish you and yours safety and health in these challenging days.
