Will new home construction slow due to the Coronavirus?

Question

Residential new construction here in the Charlotte, NC area hasn’t seemed to slow down much despite the current coronavirus pandemic. I’m curious to see how long new residential construction can weather these rough times. More importantly will we see an over abundance of inventory?  Will property values plummet due to COVID-19?  Will foreclosures be the next wave of pandemonium?

Gabor Halasz · Answer

@More Repairs I respectfully but COMPLETELY disagree. More importantly I'm not here to argue what triggers the economy adjustment, neither politics, especially not with someone who doesn't have the courage to share his/her name. On this platform as a RE investor I focus on opportunities and RE related issues and discussions such as impacts for new construction.

Gabor Halasz · Answer

Well, nobody has a crystal ball. A slow down in new construction would not be much of a surprise. A complete stop neither. It's a supply demand market, Goldman Suck expecting a 30% unemployment rate and it will have major consequences on the economy. The biggest trigger perhaps the lending and we don't know exactly what will happen with that.

I think we need to take this situation and react to it one day at the time for now. I convinced that there will be great opportunities, but over-leveraged investors will have a very hard time to keep what they have.  Nobody should be surprised, although I think nobody saw COVID-19 coming and impact everything overnight.