Corona Virus and Property Markets (USA)

Discussion in 'Property Market Economics' started by gach2, 29th Mar, 2020.

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  1. gach2

    gach2 Well-Known Member

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    Yes this is the 100th post about corona/chinese virus and property markets

    But what about in the USA
    With figures well over 100k and 1 million not out of question
    Is there a chance we will see GFC prices again in certain towns

    Also do places like Detroit and Ohio (never really recovered) get a second chance with the shift to be less reliant on China and the industrial infrastructure in place (maybe 10 -15 yrs of cobwebs)
     
  2. chunho01

    chunho01 Well-Known Member

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    It's been interesting to see the development of corona threads here. From the one thread, to two, to three, to gazillion.
    However, I am interested in this particular topic. I wonder how Italy and USA property markets are doing.
     
  3. Jana

    Jana Well-Known Member

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    May be China is good example. They start its recovery phase, hopefully Australia will be in the recovery period in 3-4 months period.
     
  4. C-mac

    C-mac Well-Known Member

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    I can tell you from recent experience personally in Detroit/Michigan, times are tough. The state is shutting down and the 3 big rental agencies in the metro area have all not only shut down physical offices, but they've just plain shut down all operations full stop, until April 12th (which given the trajectory of Michigan's infection rates, their hockey stick doesn't look like it'll flatten out for a couple weeks yet, so who knows how long the shut down will extend for).

    Statewise: The only thing in Michigan that landlords could hope for is, though Detrout famously filed for bankruptcy about 6 years ago; they are much less broke than say Illinois, so maybe the state will help it's citizens with rents in the coming months.

    Federally: I've no idea how the Fed will go about choosing 'who' gets the help and who doesn't. One would like to think though that the Fed would prioritise the poorer states over the richer ones during this time?? I.e. Michigan, Ohio, Mississippi etc.

    In the southern states I'm in the agency I work with is still operating all staff as work from home, and so essentially services can still be provided to tenants and maintenance can continue if safe to do so.
     
  5. C-mac

    C-mac Well-Known Member

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    On the positive side, when the AUD nose-dived a week or so ago, I brought back at that moment, over a years worth of USD rents, which made for a lot more in AUD which is great.
     
    Last edited: 29th Mar, 2020
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  6. MTR

    MTR Material Girl Premium Member

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    Its too early, same as Oz

    my 2 contacts tell me Atlanta still strong markets and buyers still placing offers on properties

    Also been told by some experts in this area, higher end markets going to get hammered ie NY, London, Singapore?? And commercial

    Will US go back to GFC prices I would very much doubt this. We would be looking at 600% drop from foreclosure buys in 2011 in lower end markets ie Atlanta, Florida, Arizona, Texas etc
     
  7. MTR

    MTR Material Girl Premium Member

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    Did it hit 54

    For me its huge as i bring home $13k Aud per month
    At the moment I think now thats around $6700 usd

    its jumped to 60 aud, I think we will see 50
    Just my opinion
     
  8. C-mac

    C-mac Well-Known Member

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    Hey MTR, it has jumped up a touch yes. I finalised the wire transfer and got a rate of 0.58 (well, the inverse of that, whatever it was), but % wise thats a huge amount more in AUD I had got than if I hadda done a transfer when we were at say 0.70.

    I'm not convinced AUD will dip that far down again, any time soon. Since the Fires impact on Dec quarter is only coming through in data now (COVID impact for current quarter won't come until say the June data cycle). Reasons are because our infection rate appears to be slowing as US's still continues to ramp up. Also, I have a theory that whilst Fires screwed our economy of course and was a black swan specific to our country only; my theory is that the global black swan of COVID might, for Aus, help to sweep the economic impact of the Fires 'under the rug' to a degree if (and ONLY if) we can get our COVID under control fast and begin our Phoenix-rise from these ashes quickly too.
     
  9. MTR

    MTR Material Girl Premium Member

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    Just need the share market to nose dive again and you will see Aud sink, and it will happen again
    Just my opinion, time will tell
     
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  10. C-mac

    C-mac Well-Known Member

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    Im watching the share market carefully. No one can ever pick/know the bottom of any market until it's turned a corner, but if the sharemarket really nose dives well it just might be the time to go shopping for shares. Time will tell.
     
  11. Trailblazer

    Trailblazer Well-Known Member

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    I remember hearing post-gfc you could find $50k euro apartments in beachside areas of Spain. I don't know anything about that market but it sounds like an affordable bolthole to acquire if you could get to those levels.
     
  12. Empire

    Empire Well-Known Member

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    Studios in Bulgaria at ski resorts were going for 10-15k
     
  13. MTR

    MTR Material Girl Premium Member

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