Reflecting upon this pandemic–A real estate appraisers perspective
I did not realize something that was happening in foreign countries, and now in the United States would have an impact on the real estate appraisal industry.
The federal reserve has just reduced the interest rates. The stock market has gone down, wiping out most, if not all, of the gains over the past three years. Mortgage originations have started to increase tremendously.
In addition, the mortgage rates falling below three to four percentage points. In my professional opinion, when the mortgage rates get to two percent, there will be a lot more people looking to refinance. With lower interest rates, the buyers will be able to afford more of a house. Maybe there will be negative interests this year.
I think it is interesting that real estate appraisers are under local and federal guidelines: the banking industry, AMC’s, regulators who are always trying to make changes to the industry. This same group is continually saying we are doing a lousy job.
We are in people’s homes and buildings and our safety is just as important.
Just recently, just when the coronavirus/ pandemic situation was escalating, I had a lender call me this past Monday and asked when the report was going to be so they could close on this Friday. Keep in mind; I only inspected it “on Friday”. I assume that the person expects me to work the weekend and on a 24/7 work schedule.
Although each of us doesn’t have a crystal ball, I feel this coronavirus/pandemic is going to get much worse. The federal government did not take it seriously early on.
FAIL TO PLAN PLAN TO FAIL. As of this writing, it appears it has only taken China about 3 months to rebound from this. In addtion, research how South Korea has approach this pandemic from their experience with SARS. Here in the United States, it will take a lot longer; I am sorry to say.
Be careful out there and take the necessary precautions and use common sense; everyone, that is something in our control.
President, Coast Appraisers and Consultants Inc.