In the midst of the current coronavirus pandemic, a massive number of service workers have been abruptly displaced and the general public is suffering financial anxiety.
Governor Newsom issued an executive order yesterday to protect renters and homeowners during the c oronavirus pandemic. The order imposes restrictions on landlords ability to evict tenants who have been subject to unemployment in recent weeks. "Officials emphasized that the order does not relieve tenants from having to pay their monthly rent, and landlords will still be able to recover rent that is due to them." These restrictions will remain in effect until May.
There are talks of delaying mortgage payments to ease the strain this will cause on landlords, but we are unaware of any concrete legislation available as of yet.
"The White House on Tuesday announced it was seeking an $850-billion economic stimulus to help Americans affected by the crisis." This package includes direct payments to Americans to assist with bills during this unemployment crisis.
We anticipate seeing more properties on the market (panic sellers) and fewer buyers (uncertainty).... at least until the corona-craze settles and the public regains faith in our ability to sustainably deal with this virus. Property trades have already slowed in response to the unprecedented and abrupt changes to lives of nearly every person in the world in just the past week. Some buyers, having lost a third of the value in their investment stock accounts, are backing out of escrow because they can no longer afford the down payment. And today a flood of new listings and price reductions hit the MLS from sellers trying to short the storm.
In light of the aggressive quarantine actions imposed by the government, the virus statistics in the US appear manageable. If we work together to contain it, I am optimistic that the worst will be over in a few weeks and the gears of our nation will warm back up to a healthy economy within a year. Please reference CDC Guidelines for real time numbers and recommended practices to help limit the spread of this virus.
After a stock market plunge of over 30% this past month, there is no doubt that there is a major shift in the economy. But it is said that in times of turmoil - opportunity awaits. What chess pieces will you move today to take advantage of opportunities tomorrow?
Today, commercial rates are at historic lows. Many savy investors are pulling cash-out refinances to lock in lower rates and to have money ready to scoop up opportunities in the coming months. Many loans offer interest only periods that will make payments more manageable during these difficult times ahead.
We are here for you as a resource during this time of uncertainty. We remain committed to serving your needs throughout this global health crisis and will share relevant information as it becomes available. We would also like to express our gratitude for your continued trust.
Thank you and stay healthy! 😄
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