The most important thing to remember in times like these is “this too shall pass.” The pandemic that has slowed our economy to a crawl and has many Americans resigned to their homes will not last forever, and nor with the economic affects. This isn’t just a platitude to make you feel better, there are historical stats and expert forecasts to support the fact that we’ll be back to “normal” in good order, once the disease recedes.
An Economic Prediction
As per Investopedia: “Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”
When leading experts look run their numbers predicting the future of the GDP, they see a sharp decline (our current reality) followed by a steep incline in the second half of this year.
Historic Data of the Effects of Pandemics on the Economy
History proves the projections of how Covid-19 will affect our economy. Data from John Burns Consulting shows that the “V-shaped economy” – sharp decline followed by a leaping incline once the crisis passes. Couple that information with the fact that 66% of businesses surveyed by PricewaterhouseCoopers feel their companies will return to normal within a month of the end of the pandemic, and 90% feel they should be back within 1-3 months.
What Does This Mean for the Real Estate Market?
Were you planning on selling your home or buying one this year? Well, based on the expert analysis, chances are the second half of 2020 will be your time to act. That’s not to say that you shouldn’t be taking what steps you can to get your home ready for sale, like updating your yard, painting some rooms around the house or updating your bathrooms and kitchen. The same goes for those who seek to buy a home. There’s no reason they can’t get their credit in order, start defining the wants and needs of their new home and connecting virtually with a local real estate and mortgage professional to be sure they’re ready to buy when the time comes that we are past all this.
So yes, for now, we are in the “in-between”, but history shows that once we are out of the woods with the virus, the economy and real estate market will rebound and you will be on the way to selling or buying a home.