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Before the coronavirus reached the U.S., the economy, including the residential real estate market, was in a very healthy place. While many industries seamlessly shifted online, the residential real estate industry wasn’t initially as prepared for the transition since it heavily relies upon personal interaction. This suggests the pandemic hasn’t curbed most buyers’ and sellers’ motives but that it has just set them on a new timetable – one that should see a jump once shelter-in-place requirements end. As long as agents and other professionals involved in residential real estate transactions remain creative and safe when conducting business with social distancing measures in place, buyers and sellers are likely to view these adjustments as a green light in going forward to make deals.

The stories behind the worst first quarter in history April 1st saw the worst first quarter in history for the Dow Jones, only six days after the index gained 1,351 points on March 26th. April 1st saw a drop of 4%, but the Dow Jones had a strong opening on April 2nd with the index gaining 400 points between 9:30 and 11:00am EST, and ending the day with a total gain of almost 580 points. On April 1st, the Dow Jones temporarily gained 200 points thanks to the oil market. Even though March 27th saw stocks fall, the stimulus package contributed to the 12.8% increase in the Dow Jones and the 10.3% increase in the S&P 500 for the week ending on March 27th.

As soon as the market starts to decline, investors fearful of losing money start to sell high-risk assets and invest in low-risk assets like stable-value or principle-protected funds. At a certain point, whether or not the stock market is overreacting to a specific element (like coronavirus) becomes immaterial. If enough investors panic and sell off stocks out of fear, the impact on the market is equivalent to investors selling off stocks justifiably. Despite potential stimulus packages from the U.S. government coming into effect soon, many small and medium-sized businesses that already operate in the red will close their doors forever due to the coronavirus.

In 2019 the weekly average number of showings was up by almost 32% over that same time period, reflecting the typical springtime activity on the residential real estate market. Virtual meetings are an alternative that 76% of real estate professionals had adopted as of March 10, and it’s possible that virtual open houses will become a go-to solution as more professionals invest in that technology. Realtors report deals falling apart at the last minute as buyers see their financial situation change overnight due to lay-offs or simply feel uncertain about their future and decide against making a major financial commitment. HJR Global is here to help you review your financial situation, adjust your current business strategy, and look at how residential real estate assets could fit in your business financial planning strategy.