It’s up on any news channel you pull up. Coronavirus is taking over every media, TV News, radio, social media through source of articles, memes, and typical conversation. Many throw around the word coronavirus either as a joke or as a modern black plague, but not many understand what it is and how it can affect us.
What is the Coronavirus?
Coronavirus is an illness that can be transferred between humans and animals, with usual symptoms such as ever, cough, shortness of breath and breathing difficulties. With a more severe infection, the coronavirus can result in pneumonia, severe acute respiratory syndrome, kidney failure and death. Similarly to the flu, it can be avoided through proper hygiene when washing your hands, and proper covering up when you sneeze or cough.
The coronavirus is nothing major to worry about normally, as it doesn’t normally affect people with healthy immune systems, and often targets those with current medical conditions. However, the coronavirus that is spreading is a new strain (COVID-19), many are going into a frenzy causing the economy to go into a frenzy.
Why is the coronavirus being hyped up if the symptoms are similar to the flu? It’s currently the year 2020, which is election year. Candidates need to create fear amongst the voters to create a rise in their popular vote. Last term was ebola, and the previous was zika. The coronavirus strand is fairly new, and the human body is susceptible if they have a weak immune system. China found that 80% of people diagnosed with coronavirus had mild symptoms, while 15% had fewer symptoms, and only 5% resulted in a critical state. Mortality rate has been estimated to be 1% or less. Higher numbers are being thrown around 3.5%, but those numbers are off as they don’t take into consideration those with mild symptoms that don’t arrive to a hospital.
Cutting Interest Rates
The Federal Reserve, for the first time since the 2008 Recession, cut interest rates by half a percentage point. Many news companies are promoting this as a sign of a recession coming up in 2020, but it’s too early to predict at the moment.
There’s little statistical evidence that can be used from the month of February due to how recent the Interest cuts have been, however, we can begin to make predictions.
Currently, restaurants, schools, and companies have continued to run, without laying off employees. Even so, there aren’t any coronavirus cases in Merced for us to conclude a study of how it’s affecting business locally. The main businesses currently being affected are manufacturing and travel, but the effects can spread past those sectors, and soon start affecting local businesses who may not have any direct contact with the virus.
How Business can be affected
Since the coronavirus is being treated to a similar scale as the black plague, there is mass hysteria resulting in the cancelation of events, some factories to close, and flights to be grounded if someone mentions they feel a fever coming up.
People are in constant fear of catching the illness, that they are avoiding social interaction and the economy is slightly decreasing since people aren’t purchasing as much as last year.
This affects the real estate market in a similar fashion. Many people are unwilling to go to open houses, answer any door knocking, or do any form or in-person prospecting. This is going to lead to an increase of iBuyers (internet buyers) and Sellers, in which little to no in person interaction is required to avoid getting the coronavirus. Many real estate offices are arming themselves with virtual tours and evolving their internet presence to prepare for the future buyer and seller process that could become popular.
Construction of new properties is also gonna come with a bump in price. As most construction material is ordered from china to save on cost, due to the fear of the illness being transported over, materials are going to be purchased locally in the United States.