- June 1, 2020
-- There has been no previous occasion for this kind of downturn of economic activity. Recessions or severe economic slowdowns are usually caused by the exchange between economic and/or financial differences during the period of expansion. According to a leading real estate research company, calstatecompanies, this time it is very different because the underlying cause of the downturn initiated from external economic and financial domain: a highly contagious new coronavirus that has been spreading fast since the beginning of the year.
Thus, we are seeing the first-ever recession by government decree – a necessary, temporary, and partial shutdown of our economy to prevent an even larger humanitarian crisis which is having a devastating effect on real estate investments.
Given the rapid and large economic and fiscal policy response and in the absence of major imbalances that would require a prolonged period of purging and modification, we expect the real estate investment markets to transition from intense near-term anguish during the virus suppression phase to a gradual healing over six to 12 months
Calstatecompanies Eugene E. Vollucci,***@aol.com