Last week we witnessed more stock market volatility that has mostly been attributed to the coronavirus, although an oil war between the Saudi's and Russia is thought by many to be the real culprit. Like mortgages, when the Federal Reserve lowers the overnight rate, reduced gas prices at the pump take time to trickle down to consumers when crude oil prices decline. Usually, cheaper gas would mean increased summer travel. Still, with current uncertainty, there is speculation that travel will be less than in recent years. How long current volatility lasts, and what effect it has on the real estate markets remains to be seen. Volatile markets create opportunities, and there is every reason to believe that smart buyers will use the short term unrest to their advantage. Tuesday's stock market halved the Monday sell-off showing that investors are more than willing to buy at reduced prices. Please let me know if you would like to discuss your plan for navigating today's turbulent markets.
