Housing & Commercial Real Estate for the week ending April 24, 2020
For yet another week, news of the coronavirus continues to dominate both the local and national headlines for the economy, housing and commercial real estate. From forecasts for a “V” shaped economic recovery to “gloom and doom” with the most recent unemployment numbers, it has been quite challenging to determine the path of the trend.
Following are several articles relating to housing and commercial real estate which we found to be most significant in highlighting both where things stand and where they are going.
By Amanda Lauren, Forbes
“As coronavirus progressed from an outbreak to a pandemic at the beginning of 2020, the real estate market slowed down significantly by early March. As mortgage rates declined, despite a general fear of the unknown in terms of public health and the economy, there was still some activity with motivated buyers attending open houses and looking at property. But since social distancing and shelter in place orders were mandated around mid-March in most states, real estate activity hasn’t come to a halt entirely, but it has slowed down in a way the industry hasn’t experienced in a very long time.”
By Colin Dunn, National Multifamily Housing Council
“Apartment market conditions weakened in the National Multifamily Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions for April 2020, as the industry confronts the ongoing COVID-19 pandemic. The Market Tightness (12), Sales Volume (6), Equity Financing (13), and Debt Financing (20) indexes all came in well below the breakeven level (50).
“Residents across the country are currently under directives to stay at home and practice social distancing in order to contain the spread of COVID-19. As a result, much of the nation’s economic activity has been put on hold,” noted NMHC Chief Economist Mark Obrinsky. “With upwards of 20 million Americans now out of work, it is not surprising that 82 percent of respondents reported looser market conditions this quarter, and that just 5 percent observed a tighter market.”
By Chris Losquadro, Quantum Realty Advisors, Inc.
“Prior to experiencing the full economic impact of the coronavirus, the residential housing market was mixed on both a nationwide and local basis. While prices continue to improve, there is evidence that overall activity is withering which will have a significant affect on the market in the coming months.”
By Annie Massa, Bloomberg
“BlackRock Inc. Chief Executive Officer Larry Fink said the work-from-home revolution will have lasting effects, including pushing down demand for commercial real estate.
Fink said that after businesses were forced to run from mostly remote setups during the coronavirus crisis, many companies will choose not to bring all their workers back to the office even when it is safe to do so.”
South Florida Real Estate
To learn more about the real estate market in South Florida, please visit the Real Estate Market Reports page on our web site. Every month it is updated with the latest published reports on the housing market in Palm Beach, Martin, Broward, and Miami-Dade counties as well as commercial real estate information which is provided by local market participants.
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