All of Italy is in quarantine, production of products are being halted or postponed, events are being cancelled, airlines are taking a massive hit, and the stock market is crashing. Freelancers are in a position where job gigs are being cancelled due to the fear of contracting coronavirus. Unemployment rates are rising as faculty members of sporting events are losing jobs due to the cancellation of events, or factory workers being laid off due to the closing of factories.
You drive to Costco, Walmart, any retail store really, and you see havoc. People rushing to purchase toilet paper, water bottles, baby wipes, acting like the end of the world is coming. It’s gotten to the point where there are viral videos of people fighting for a pack of toilet paper. You may not be part of the frenzy at the stores, but you are still being impacted directly.
Later today, Donald Trump is expected to declare a state of national emergency due to the coronavirus. The Stafford act grants him the power to allocate the $40 Billion fund for disaster relief to address the coronavirus issue. Primaries are being postponed as well in Louisiana, being the first state, with more following soon.
Have there been any Coronavirus cases in Merced County?
According to the Merced Department of Public Health, Merced currently has had zero cases reported, but our neighboring counties have reported cases. Stanislaus County, San Benito, and Fresno County have two cases each, Madera has one, and Santa Clara has 48 confirmed cases with one total death.
Let’s also take into account not all cases are being reported. Many feel the symptoms and treat it as the flu instead of going to hospital to get tested for the coronavirus. All self quarantine cases are not taken into consideration, so the numbers may be higher than what is currently known.
Has there been any noticeable impact in Merced County?
On March 11th, Atwater declared a state of emergency, being the first in Merced County. Mayor Paul Creighton recognizes that they are moving faster than their neighboring cities, but he wants to demonstrate they are doing everything in their power to help the general public. This choice was voted for unanimously by the Atwater Council and they have the power to renew this state in 30 days.
Retail Stores are struggling to keep up with demand for products such as medicine, waters, rolls of toilet paper, cleaning products, and pantry stock-ups. Target’s CEO has come out with a statement in which they are sending as many products as possible to the stores to meet with demand, and starting this weekend they will implement a limit to the number of key items being purchased. Costco in Merced, CA seems to be in a worse situation where people are lined outside the store before they open, and rush straight to get the key items mentioned, with limits being applied, yet products are sold out by the end of the day.
Starting next week, college classes are cancelled and are to be taken online to avoid mass contact and possible transfer of the coronavirus. School and recreational sporting events are being cancelled as well. This mass hysteria is causing a shift in our community to remain reserved and limit contact.
What is the Impact on the Real Estate Market?
Some property owners and investors use services such as Airbnb and VRBO to rent out their home. Those owners are currently taking a fall, as many are cancelling their trips to refrain from being infected. Those who depended on the extra income to pay off the mortgage are now left thinking how they can pay off the property
Interest rates for homes on March 2nd dropped drastically to 3.13%, where one would have gotten a home $300,000 at a monthly rate of $1,286 a month for 30 years, totaling $464,939. As of today, March 13th, the rates have risen back to 3.65, making that same house payment at $1,372 with a totaling price of $494,056. That’s $86 dollars difference a month, and a whopping $29,116 more. With the stock market crashing, odds are the rates are going to drop again. Don’t miss the opportunity to buy a home.
What Precautions can you take?
Coronavirus is similar to the flu in symptoms, and chances of contracting can decrease with the same precautions as the flu.
- It’s important to wash your hands frequently with soap and water to kill viruses and use hand sanitizer.
- Maintaining a distance of 3 feet from anyone who is coughing and/or sneezing
- Avoid touching eyes, nose, and mouth
- Sneeze or cough into your elbow or tissue and dispose of tissue immediately to prevent infecting those around you.
- If you have a fever or cough, seek medical health immediately
We people are more resilient than we think. There have been other viruses that have threatened our existence, and the market was due for a fall. But always, we push through, and eventually we find a cure to illnesses, and the market has a trend of rising eventually. This is healthy for the market, as it helps us take a step back and find a better way to navigate through the course.
Contact our team today at 209.975.7653 or info(at)soldavi(dotted)com for more information on local Merced County Real Estate market trends.