by Shawn Clayton
on Thursday, March 19th, 2020 at 11:46am.
This month’s newsletter topic is one that we could not have foreseen. We are certainly in new and uncharted territory. Moments like these can be unsettling and even scary. However, it is in these times of uncertainty that we can truly thrive and grow as a society.
Over the past couple of days, I've been thinking about how NYC surmounted crises in the past and how our resilience can result not only in economic recovery but in growth.
To name a few:
1. The 2008 Financial Crisis was the biggest economic downturn since the Great Depression. US stocks dropped 56.8% - recovered 68.6% within 12 months and NYC housing prices dramatically increased year over year.
2. Hurricane Sandy struck on October 29, 2012 causing $70.2 billion in economic damage. Through funding and restoration efforts, Superstorm Sandy temporarily disrupted businesses in the affected areas. In fact, New York City & New Jersey job growth accelerated from 1% in the two years prior to the storm to 4% in the years following. Post Sandy property values self-corrected and developers adapted new building layouts designed to withstand severe storms.
3. The Dot-com bubble saw the Nasdaq index, which had risen five-fold between 1995 and 2000, tumble from a peak of 5,048.62 on March 10, 2000, to 1,139.90 on Oct 4, 2002, a 76.81% fall. Overall, US stocks dropped 49% and recovered 33.7% within 12 months. Home prices actually rose by 6.60% during this time as investors forewent the volatility of the stock market and turned towards real estate as a stable investment.
4. And of course 9/11, which most of us vividly remember. We saw shock and trauma course through our entire nation. NYC, America and the world came together and after a few months of almost a complete halt in business the real estate market began to soar and reached even new heights.
Until we get this virus under control, there is no way to predict exactly what the economic impact will be. That being said, we are seeing some of the lowest mortgage rates in our lifetimes and financial stimulus packages never seen before. These factors have always been conducive to a thriving Real Estate market.
But for right now, please heed the advice of our officials and medical professionals. Practice social distancing and wash your hands.
If we come together as a global community and work together this could be one of our finest hours.
In the meantime, we are working from home, here with Madison home from Marist College & Lexie now a junior in High School. Meet our newest addition to our family Titan...just 6 weeks old and growing strong. I know Tayor and Ashley are just thrilled to have him in our family.
Have to admit, it can be a little chaotic and I have to remind myself to take deep breaths. We are having some very sweet bonding family time.