{"id":123425,"date":"2020-03-18T10:00:07","date_gmt":"2020-03-18T16:00:07","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=123425"},"modified":"2024-01-05T11:34:39","modified_gmt":"2024-01-05T18:34:39","slug":"impact-coronavirus-real-estate-markets","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/impact-coronavirus-real-estate-markets","title":{"rendered":"The Impact of Coronavirus on Real Estate Markets"},"content":{"rendered":"<p>On March 11, 2020, the World Health Organization (WHO) officially designated the coronavirus and COVID-19 (the respiratory illness it causes) a pandemic. Cases have occurred in <a href=\"https:\/\/www.npr.org\/sections\/goatsandsoda\/2020\/03\/11\/814474930\/coronavirus-covid-19-is-now-officially-a-pandemic-who-says\" target=\"_blank\" rel=\"noopener noreferrer\">114 countries and resulted in approximately 120,000 infected people and more than 4,000 deaths<\/a>.<\/p>\n<p>Although the statistics and the ways the illness affects individuals\u2019 lives are rapidly changing, we\u2019ve taken a look at how the outbreak is impacting U.S. domestic real estate markets up to this moment.<\/p>\n<h2>A Summary of Related Economic Events<\/h2>\n<ul>\n<li>Since the WHO declared a global emergency on Feb. 20, 2020, major stock indices around the world have <a href=\"https:\/\/www.bbc.com\/news\/business-51706225\" target=\"_blank\" rel=\"noopener noreferrer\">dropped an average of more than 9 percent.<\/a> The Dow Jones Industrial Average suffered its <a href=\"https:\/\/www.usnews.com\/news\/economy\/articles\/2020-02-27\/dow-plunges-to-biggest-loss-in-history-on-coronavirus-fears\" target=\"_blank\" rel=\"noopener noreferrer\">largest single-day drop in history<\/a> on Feb. 27, 2020.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-123444\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/conavirus-impact-stocks-1024x832.png\" alt=\"\" width=\"702\" height=\"570\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/conavirus-impact-stocks-1024x832.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/conavirus-impact-stocks-300x244.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/conavirus-impact-stocks-768x624.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/conavirus-impact-stocks-168x137.png 168w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<ul>\n<li>The travel industry is sustaining significant losses. Major <a href=\"https:\/\/www.cnn.com\/2020\/02\/29\/business\/travel-industry-coronavirus-economic-impact\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">conventions are being canceled<\/a>, and large companies are <a href=\"https:\/\/www.cnn.com\/2020\/02\/29\/business\/travel-industry-coronavirus-economic-impact\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">discouraging non-essential travel<\/a>. <a href=\"https:\/\/www.gbta.org\/blog\/the-coronavirus-has-the-potential-to-jeopardize-the-global-business-travel-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">More than one-third of business travel in 2020 may be lost<\/a>.<\/li>\n<li>On March 15, 2020, the <a href=\"https:\/\/www.washingtonpost.com\/business\/2020\/03\/15\/federal-reserve-slashes-interest-rates-zero-part-wide-ranging-emergency-intervention\/\" target=\"_blank\" rel=\"noopener noreferrer\">Federal Reserve cut its benchmark interest rate to 0 percent<\/a>\u00a0and announced plans to buy at least $700 billion in government and mortgage-related bonds. This happened less than two weeks after the Fed <a href=\"https:\/\/www.washingtonpost.com\/business\/2020\/03\/03\/economy-coronavirus-rate-cuts\/\" target=\"_blank\" rel=\"noopener\">cut the benchmark rate by 50 basis points<\/a> to just below 1.25 percent.<\/li>\n<li>On March 6, 2020, Congress passed a bipartisan <a href=\"https:\/\/www.axios.com\/coronavirus-emergency-funding-congress-deal-8c9e7b5a-30a5-48a8-97ec-9bfc13dbe6f6.html\" target=\"_blank\" rel=\"noopener noreferrer\">$8.3 billion coronavirus bill<\/a> that includes $3 billion for developing coronavirus treatments, $2.2 billion to help stop its spread, and more than $1 billion to aid efforts overseas.<\/li>\n<li><a href=\"https:\/\/www.curbed.com\/2020\/3\/6\/21163523\/coronavirus-economic-impact-housing-market\" target=\"_blank\" rel=\"noopener noreferrer\">Mortgage rates have dropped to three-year lows<\/a>, to approximately 3.5 percent at the time of this post.<\/li>\n<li>Overall U.S. <a href=\"https:\/\/www.uschamber.com\/series\/above-the-fold\/quick-take-coronavirus-economic-impact\" target=\"_blank\" rel=\"noopener noreferrer\">growth may drop to below 2 percent<\/a>\u00a0in the first quarter, and <a href=\"https:\/\/www.fool.com\/millionacres\/real-estate-market\/articles\/how-the-coronavirus-could-impact-the-american-real-estate-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">lost global output due to the virus could amount to $2.7 trillion.<\/a><\/li>\n<li>On March 13, 2020, <a href=\"https:\/\/www.washingtonpost.com\/world\/2020\/03\/13\/coronavirus-latest-news\/\" target=\"_blank\" rel=\"noopener noreferrer\">President Trump declared a state of emergency<\/a>, which is expected to make $40-50 billion available to address the outbreak.<\/li>\n<\/ul>\n<h2>Will Economic Volatility Caused by Coronavirus Impact Real Estate?<\/h2>\n<p>Despite what many people believe, <a href=\"https:\/\/finance.zacks.com\/relationship-between-stock-market-real-estate-prices-10244.html\" target=\"_blank\" rel=\"noopener noreferrer\">there isn\u2019t a direct connection<\/a> between stock market performance and real estate values. It\u2019s the overall health of the economy (which prior to the events of the past two weeks, was still considered relatively strong) that ultimately affects them both. As long as consumers feel confident about their jobs and income, they will continue to spend\u2014and that includes buying real estate.<\/p>\n<p>Among other things, the strength of the real estate market is <a href=\"https:\/\/www.curbed.com\/2020\/3\/6\/21163523\/coronavirus-economic-impact-housing-market\" target=\"_blank\" rel=\"noopener noreferrer\">impacted by treasury bond prices<\/a>, which are correlated to mortgage rates. When the stock market and other asset classes start to see a lot of volatility, investors will move their cash to bonds for stability and security. As demand for treasury bonds increases, however, bond prices go up and their yields (the interest they pay investors) fall. And that pulls mortgage rates down, too.<\/p>\n<p>It\u2019s worth noting that the catalyst for today\u2019s economic situation is <a href=\"https:\/\/www.curbed.com\/2019\/1\/10\/18139601\/recession-impact-housing-market-interest-rates\" target=\"_blank\" rel=\"noopener noreferrer\">very different from the 2008 financial crisis<\/a>, which was directly caused by issues in the sub-prime lending market. During that recession, sub-prime mortgages were bundled up and sold for much more than they were worth. Ultimately, real estate speculators let homes financed by these mortgages go into default, and these bundles of mortgages\u2014called <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/finance\/credit-default-swap-cds\/\" target=\"_blank\" rel=\"noopener noreferrer\">credit default swaps\u2014lost most of their value<\/a>, bankrupting large investors and starting a domino effect that rippled through all aspects of the economy.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/preparing-financial-independence-preparing-recession\" target=\"_blank\" rel=\"noopener noreferrer\">5 Tips to Survive a Coronavirus-Induced Recession (&amp; Thrive Afterward)<\/a><\/em><\/p>\n<p>The current stock market volatility is not the result of issues in the real estate market, but is specifically the result of uncertainty about <a href=\"https:\/\/www.curbed.com\/2020\/3\/6\/21163523\/coronavirus-economic-impact-housing-market\" target=\"_blank\" rel=\"noopener noreferrer\">how the coronavirus may impact supply chains and corporate earnings<\/a>. While it remains to be seen, real estate may be insulated to some extent because of tight residential inventory, high buyer demand, low mortgage rates, and lower prices for lumber and oil.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-122463 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/02\/business-newspaper-cool-tones-v2-702x336.jpg\" alt=\"closeup of folded stacked newspaper with business section visible\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<p>But this is a continually evolving story. As of this writing, <a href=\"https:\/\/www.axios.com\/ohio-governor-bars-restaurants-coronavirus-26e4b6e3-7f65-4f6a-abf9-f3940220cc6f.html\" target=\"_blank\" rel=\"noopener noreferrer\">10 states have ordered everything from mandatory shutdowns<\/a> of all non-essential businesses to <a href=\"https:\/\/www.axios.com\/ohio-governor-bars-restaurants-coronavirus-26e4b6e3-7f65-4f6a-abf9-f3940220cc6f.html\" target=\"_blank\" rel=\"noopener noreferrer\">limits on restaurants<\/a>, only allowing delivery and take-out options. Everything from Broadway to Disney World to Colorado ski resorts are at least temporarily closed, and discretionary travel has for the most part stopped.<\/p>\n<p>While the businesses involved may (or may not) have the resources to survive these conditions, there is no doubt that employees will be immediately and directly affected. Not only are their hours and income suddenly in jeopardy, but their jobs may go away. And <strong><em>this will<\/em><\/strong> impact real estate markets.<\/p>\n<p>When people start to lose their jobs and see their hours and wages cut, their disposable income drops. This results in their spending less money, <a href=\"https:\/\/www.thebalance.com\/consumer-spending-definition-and-determinants-3305917\" target=\"_blank\" rel=\"noopener noreferrer\">one of the most important factors in maintaining the health of the economy<\/a>. A reduction in spending directly (and negatively) affects U.S. GDP, unemployment, and income growth\u2014all of which are needed to support housing prices.<\/p>\n<p>In other words, if employers see long-lasting decreases in revenue, they will start laying off employees, and their laid-off workers will have less to spend\u2014which slows growth further and <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/032515\/why-does-unemployment-tend-rise-during-recession.asp\" target=\"_blank\" rel=\"noopener noreferrer\">creates a vicious cycle leading to more layoffs<\/a>. This would affect housing markets by tipping the current balance of low supply and high demand.<\/p>\n<p>Savvy investors should keep a close eye on these developments, as well as continue to track mortgage interest rate changes and any government stimulus packages enacted to help ease the impact of coronavirus on the overall economy.<\/p>\n<h2>What About a Recession?<\/h2>\n<p>By definition, two successive quarters of declining GDP officially represents a recession, and recessions always have <a href=\"https:\/\/www.curbed.com\/2019\/1\/10\/18139601\/recession-impact-housing-market-interest-rates\" target=\"_blank\" rel=\"noopener noreferrer\">significant impact on individuals\u2019 incomes<\/a>. Reduced income and wages results in homebuyers and renters having less to spend on their monthly housing costs, leading to lower home prices and lower market rents.<\/p>\n<p>It\u2019s worth noting that we might already be in a recessionary period (we won\u2019t know until today\u2019s economic data is released a couple months from now). In addition, <a href=\"https:\/\/www.cnn.com\/2020\/03\/16\/economy\/global-recession-coronavirus\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">Goldman Sachs has forecast significant declines<\/a> in U.S. GDP from now through June. And UCLA Anderson School of Management\u2019s Anderson Forecast says that <a href=\"https:\/\/www.latimes.com\/business\/story\/2020-03-16\/us-economic-recession-coronavirus-ucla-anderson-forecast\" target=\"_blank\" rel=\"noopener noreferrer\">the economy has stopped growing<\/a> and won\u2019t recover until the end of September.<\/p>\n<p><strong><em>Related:<\/em><\/strong><em> <a href=\"https:\/\/www.biggerpockets.com\/blog\/get-rich-next-recession\" target=\"_blank\" rel=\"noopener noreferrer\">5 Ways the Next Recession Can Make You Rich<\/a><\/em><\/p>\n<p>It\u2019s still early in this crisis, but we expect <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#2e2a7a9e5db1\" target=\"_blank\" rel=\"noopener noreferrer\">hospitality-related real estate markets to experience the most immediate impact<\/a>. Hotels, for example, will probably not be able to recover lost revenue, and planned construction in this sector is likely to be put on hold for the foreseeable future. <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#2e2a7a9e5db1\" target=\"_blank\" rel=\"noopener noreferrer\">Airbnb properties will probably be hit very hard<\/a>, because once customers start traveling again, they will be more wary of the cleanliness of privately owned homes compared to larger chains with professional maintenance and cleaning staffs.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-121981 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/02\/recession-dictionary-entry-702x336.jpg\" alt=\"dictionary entry defining the word recession which is highlighted in pink\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<p><a href=\"https:\/\/www.cushmanwakefield.com\/en\/united-states\/insights\/2020-coronavirus-and-impact-on-the-property-markets\" target=\"_blank\" rel=\"noopener noreferrer\">The impact on commercial real estate remains to be seen<\/a>. It\u2019s a slower-moving, more stable market that responds much later than more volatile indicators like stock performance. Cushman &amp; Wakefield notes that \u201cif the virus has a sustained and material impact on the broader economy, it will have feed-through impact on (commercial) property\u2026\u201d<\/p>\n<p>Commercial real estate is also comprised of many different asset classes\u2014from office to retail to warehouse\u2014and each of these asset classes may respond differently during the next economic downturn.<\/p>\n<p>That doesn\u2019t mean there\u2019s no potential bright side to all this negative news. During three of the last five recessions, <a href=\"https:\/\/www.curbed.com\/2019\/1\/10\/18139601\/recession-impact-housing-market-interest-rates\" target=\"_blank\" rel=\"noopener noreferrer\">home prices actually went up<\/a>\u2014anywhere from 1.9 percent to 4.8 percent. And if the economic impact due to coronavirus follows the pattern set by past public health issues, we may be poised for a strong rebound once the virus is under control and normal activities have resumed.<\/p>\n<p>Additionally, there may be other factors that may lead to more desirable outcomes. As mentioned earlier, low inventory and high demand may help prop up the real estate market through the crisis. At the end of last year, the number of <a href=\"https:\/\/www.cnbc.com\/2020\/01\/02\/competition-for-housing-is-so-high-the-spring-market-is-starting-now.html\" target=\"_blank\" rel=\"noopener noreferrer\">homes for sale was down 9.5 percent annually and the number of entry-level homes was 16.5 percent lower<\/a> than the year before. Realtor.com already predicts historic inventory lows this year.<\/p>\n<h2>What If Coronavirus Directly Impacts Your Investments?<\/h2>\n<p>Depending on how all these details and forecasts play out, you could find yourself facing unexpected investment challenges, like reliable tenants suddenly unable to pay rent. <a href=\"https:\/\/www.curbed.com\/2020\/3\/13\/21176667\/coronavirus-eviction-moratorium-cities\" target=\"_blank\" rel=\"noopener noreferrer\">Lower income workers with little, or no, savings could feel the greatest financial impact<\/a> as various venues and businesses cancel events, limit hours, or completely close their doors.<\/p>\n<p>But at the same time, more and more municipalities are putting eviction moratoriums in place as the health crisis unfolds. <a href=\"https:\/\/www.americanbanker.com\/news\/calls-mount-for-u-s-to-halt-foreclosures-evictions-amid-health-crisis\" target=\"_blank\" rel=\"noopener noreferrer\">The federal government is being pressured<\/a> to enact a national moratorium. As of this writing, Los Angeles, Santa Monica, San Francisco, Miami, Philadelphia, and San Jose, California, Austin, Texas, and the state of New York have either put moratoriums in place or have temporary holds on processing evictions.<\/p>\n<p>If these circumstances affect your ability to meet mortgage payments, the <a href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2020\/03\/13\/mortgage-relief-options-are-available-to-homeowners-affected-by-coronavirus-safety-measures\/#434e45be53ab\" target=\"_blank\" rel=\"noopener noreferrer\">Federal Housing Finance Agency (FHFA) has advised mortgage servicers to offer forbearance options<\/a>. These will allow borrowers impacted by COVID-19 and related safety measures (like quarantines and business closings) to take advantage of hardship forbearance.<\/p>\n<p>Options include temporarily reduced or suspended mortgage payments for up to six months, although interest will accrue during the forbearance period. Arrangements often provide a reinstatement or repayment plan to make up missed payments.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-123430\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/money-coronavirus.jpg\" alt=\"Coronavirus Wuhan. US quarantine, 100 dollar banknote with medical mask. The concept of epidemic and protection against coronavrius.\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/money-coronavirus.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/money-coronavirus-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h2>Are There Any Positives in the Current Situation?<\/h2>\n<p>The most obvious bright spot in the current uncertainty is low mortgage rates. Since <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#2e2a7a9e5db1\" target=\"_blank\" rel=\"noopener noreferrer\">the Fed usually doesn\u2019t move quickly to undo stimulus efforts<\/a>, rates are likely to remain low for a while. If demand and consumer confidence remains high, that presents opportunities to refinance existing properties and to move forward on new purchases.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/users\/JerryPadilla\" target=\"_blank\" rel=\"noopener noreferrer\">Jerry Padilla<\/a>, a lender in Rochester, N.Y., says, \u201cInvestors are already looking to refinance their properties and to make purchases while rates are so low.\u201d He adds, \u201cEveryone seems to have a sense of urgency, but investors need to understand there will be delayed turnaround times as lenders are seeing huge influxes of business.\u201d<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/users\/QualityC\" target=\"_blank\" rel=\"noopener noreferrer\">Colin Smith<\/a>, a Realtor in Colorado Springs, Colorado, says, \u201cWe\u2019re seeing extreme competition among single-family homebuyers that we haven\u2019t seen since 2017.\u201d<\/p>\n<p>Be aware that there are a <a href=\"https:\/\/www.bankrate.com\/banking\/federal-reserve\/interest-rate-decrease-winners-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">couple of scenarios in which the new lower rates might not be helpful<\/a>, such as if you\u2019re underwater on the value of a property or in a fixed-rate mortgage that\u2019s not high enough to justify the expense of refinancing.<\/p>\n<p><a href=\"https:\/\/www.bankrate.com\/banking\/federal-reserve\/interest-rate-decrease-winners-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Home equity lines of credit (HELOC) are expected to come down soon<\/a> in response to the new federal funds rate. If you have already borrowed on a HELOC, this will lower your interest expenses. If you\u2019ve been considering a line of credit, it may be time to investigate the best available rates in your area.<\/p>\n<h2>Summary<\/h2>\n<p>The coronavirus\u2019s ultimate impact on real estate markets will largely depend on the length of the outbreak and whether there is a <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#691f81ba5db1\" target=\"_blank\" rel=\"noopener noreferrer\">quick recovery<\/a> (with a return to overall social and economic stability) <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#691f81ba5db1\" target=\"_blank\" rel=\"noopener noreferrer\">or a more extended one<\/a> (in which medical outcomes are worse than expected, and consumer and economic disruptions linger).<\/p>\n<p>At the moment, residential investments are well positioned, largely due to aggressive action by the Fed, low mortgage interest rates, and an advantageous balance between supply and demand. This has <a href=\"https:\/\/www.forbes.com\/sites\/joshuapollard\/2020\/03\/06\/the-coronavirus-could-have-an-unintended-effect-on-your-real-estate-portfolio\/#2e2a7a9e5db1\" target=\"_blank\" rel=\"noopener noreferrer\">already resulted in an increase in residential property values<\/a> over the past several weeks.<\/p>\n<p>But some experts say that a recession has already begun that could last through the next several quarters. In anticipation of decreased economic performance, the FHFA has advised mortgage servicers to offer forbearance options to mortgage holders facing financial difficulties related to the coronavirus and COVID-19.<\/p>\n<p>As a prudent investor, stay focused on factors that could change the outlook. For example:<\/p>\n<ul>\n<li>Quarantines and social distancing <a href=\"https:\/\/www.fool.com\/millionacres\/real-estate-market\/articles\/how-the-coronavirus-could-impact-the-american-real-estate-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">will create slower revenue and growth in commercial real estate<\/a>\u00a0and may cause increases in defaults on commercial loans.<\/li>\n<li>Uncertainty around our future economic outlook may move some buyers to the sidelines (reducing demand) and may induce some sellers off the sidelines (increasing supply).<\/li>\n<li>According to Green Street Advisors, real estate investment trusts (REITs), usually safe havens during stock market declines, have been surprisingly hard hit by recent volatility.<\/li>\n<li><a href=\"https:\/\/www.curbed.com\/2020\/3\/6\/21163523\/coronavirus-economic-impact-housing-market\" target=\"_blank\" rel=\"noopener noreferrer\">New construction projects could be delayed<\/a> by supply chain disruptions or possible labor shortages.<\/li>\n<li>Travel and related industries could have a ripple effect as <a href=\"https:\/\/www.cnn.com\/2020\/03\/10\/business\/airline-flights-coronavirus\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">major air carriers make significant cuts<\/a> to their schedules and <a href=\"https:\/\/www.cnn.com\/2020\/03\/06\/business\/airline-jobs\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">begin to ask staff to take unpaid leave<\/a>.<\/li>\n<li>Realtor Colin Smith reports that some of his lending resources have seen lack of activity on large blocks of mortgages for sale. If that becomes a trend, mortgage brokers could face difficulties generating capital for new business.<\/li>\n<li>Look to trusted sources like BiggerPockets for insights on how these many different considerations are influencing markets, public health, and important decision-makers.<\/li>\n<\/ul>\n<blockquote><p><em>All of these analyses and recommendations are based on expertise, experience, research, and opinions. However, we remind you that it\u2019s impossible to predict the future with any certainty. As a result, we emphasize that the wisest investors adopt a long-term perspective and don\u2019t try to \u201cgame\u201d the market. And as always, consult with your personal financial, business, and legal advisors before making any investment decisions.<\/em><\/p><\/blockquote>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/recession-proof-ebook\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-123402\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-link-button.jpg\" alt=\"Recession-Proof Real Estate book blog ad\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-link-button.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-link-button-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>How are you handling rapid market changes? Are we in a recession? How will you adjust your investing strategy?\u00a0<\/em><\/p>\n<p><strong>Join the discussion in the comment section below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On March 11, the World Health Organization officially designated the coronavirus and COVID-19 (the respiratory illness it causes) a pandemic. Although the statistics and the ways the illness affects individuals\u2019 lives are rapidly changing, here&#8217;s a look at how the outbreak is impacting domestic real estate markets.<\/p>\n","protected":false},"author":2444,"featured_media":120066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7383],"tags":[],"class_list":["post-123425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/123425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/2444"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=123425"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/123425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/120066"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=123425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=123425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=123425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}