Coronavirus and The Real Estate Market

Coronavirus and The Real Estate Market

Like many of you, I’ve been actively monitoring the developments around the coronavirus. It’s a fluid situation that’s continuously changing. The long-term impact is not yet known, but here’s a look at the current conditions, as of March 16.

All-Time Low Mortgage Rates

Over the past year or so, mortgage interest rates have been declining as more money flows into the bond markets, and they are now at an all-time low. As of March 12, Freddie Mac reported a weekly average 30-year fixed-rate mortgage of 3.36%, compared to 4.31% around the same time last year. This almost 1% change can increase a consumer’s buying power significantly.

Appreciation Remains Steady

Real estate remains a solid investment with proven appreciation over time. Historically, we’ve seen homes increase in value by nearly 5% per year nationwide. In times of stock market volatility, consumers and investors will often flee from equities and put their money into the purchase of real estate as they know it’s an asset with multiple lines of revenue—appreciation, tax advantages, potential cash flow from rental income and loan principal pay down.

I’ll continue to evaluate the market as we move forward, and I’ll keep you updated. As always, I’m here for any of your real estate questions – give me a call or send me an email.

Work With Us

The team at Denise Ramey Real Estate has extensive experience in the local market in Central Virginia and the Charlottesville area, allowing you to enjoy a more simplified process. We handle everything in-house, from the first steps of your search through to the final details of the transaction. We leverage our extensive network to benefit buyers and sellers alike, ensuring that your transaction is as simple as possible.

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