Phoenix Real Estate, Coronavirus and Stock Market Drop

[Thomasaz]

If we go through a recession, all real estate will take a hit. Phoenix will be hit real hard because a lot of its economy is based on real estate speculation, more so than other metropolitan areas. I do think we will see a decline in the economy and by default the local real estate market, but it won't be as bad at 2008 as the economic collapse was so tied to the housing market. This would be a different situation.

[Valley Native]

Originally Posted by Thomasaz

If we go through a recession, all real estate will take a hit. Phoenix will be hit real hard because a lot of its economy is based on real estate speculation, more so than other metropolitan areas. I do think we will see a decline in the economy and by default the local real estate market, but it won't be as bad at 2008 as the economic collapse was so tied to the housing market. This would be a different situation.

Which is why I've said for a long time that the Phoenix area needs to diversify its economy more than it does. I think we have gotten a little better in this regard, possibly thanks in part to what happened during the last downturn. But as a metro area, we still rely too much on real estate & home construction, which can be a major money maker during good economic times, but it's not a steady, reliable source.

I'm not so sure if this will be like 2008 or not ... it possibly could be worse overall because the entire nation is forced to shut down thanks to an overly intrusive government. Even if the Corona virus is maintained, the spread is reduced, and restaurants & social gatherings are allowed to return to normal, it likely will not mean a sudden bounce back. We hope it will (and I think most of us WANT this to happen), but I think Trump is jumping to conclusions and being overly hopeful at this point.

[Hal Roach]

An American teacher in Hainan has confirmed that things are returning to normal, there. Similar reports from the mainland. Japan might even still hold the Olympics.

[PamelaIamela]

Originally Posted by asufan

Exactly. And even within the stock market, there's safer boring stocks that earn dividends and there's risky stocks. I actually have a stock that has skyrocketed this month, although a majority are way down and some that are barely down. It's all about risk tolerance and how long an investment horizon you have. Someone retired should have less than 25% in high risk stocks, unless its "play money"

Are you even remotely aware of the carnage in the bond markets lately?
Do you know that even gold is down?
And posts that compare the real estate/economic collapse of 2006-2011 to today have it backward; real estate and the equity markets did not crash during the financial crisis because the economy collapsed; the economy collapsed because real estate collapsed, which caused the crisis!

This situation is unique and has caused a genuine panic across all platforms.
I am hopeful that whenever it becomes evident that the pandemic has peaked the panic will bottom and the recovery will be fast and furious.