There has been major concerns about the impact that the Coronavirus might have on the United States’ real estate market. Some of the major players in the real estate market in the United States are Chinese Investors from Taiwan and Hong Kong, these are buyers who come to the United States looking for real estate property, and they have made significant contributions in the real estate sellers’ market over the years. With the Coronavirus outbreak in Wuhan province in China, it means that there will be restrictions to come to the united states, as a matter of fact, there is minimal travel from China coming into the United States, safety measures are being taken to prevent the spread of the virus into the country.
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When asked about whether the outbreak of Coronavirus might lead to the decline in the buyers from China, Kelvin Brown, a senior partner of the Sotheby International Realtors, said, No, because they were not here before due to geopolitical issues. Kelvin continued to say that they are still in the early stages of analyzing the impact that Coronavirus might have on the real estate markets.” It is still early to make conclusions on the outcomes of the Coronavirus on the real estate industry. “ Kelvin Brown said.
So the impact of the Coronavirus seems not to have affected the home market of the US so far, we are still in the early stages. The major provinces that have been affected by the virus are Hong Kong, Taiwan, and Singapore. It means that in the long run, if the virus continues to block the movement from these provinces, the real estate market in the United States will be affected significantly. This is because the wealthy Chinese from these provinces will be forced to remain in China. They are prospective homebuyers, and the quarantine in China will not allow them to leave. At the same time, the United States government is being very cautious with Chinese travelers.
When asked about the impact of Coronavirus on the United States home markets, Daniel Chang, the head of Asia for the field Sotheby, said that “it will not just affect our markets” the implications might be huge, and we need to brace for impact. He continued to relate the Coronavirus with the SARS outbreak that was evident two decades ago and how it affected the United States markets. Daniel Chang continued to say that buyers from Hong Kong and Taiwan will be impacted significantly; their traveling will be restricted. So they will avoid deploying any substantial capital for now.
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So from the analysis of major players within the US real estate industry, it is too early to tell whether the impact of the Coronavirus is enormous. The short term impact has not yet been felt, but if the virus continues up to September 2023, then the real estate market will be affected significantly in the United States. In the long run, the market will decline if the virus is not contained early enough.