This topic was explored in last Friday’s Housing Notes.
In order to understand what is happening now, we need to ween ourselves off of what happened before this crisis and focus on finding data exclusive to the post-COVID-19 era. In Manhattan, that data set is not yet apparent because we are in nearly a total market shut down but it is evident elsewhere to a limited degree. From my perspective, the demarcation line for the onset of the crisis is where market participants would have to be living in a cave on a desert island to be unaware of the sharp pivot in market sentiment.
March 15, 2020
I believe that date is March 15th which is the date of the Federal Reserve federal funds rate cut to zero and was their second cut in less than two weeks.
March 11, 2020
My friend and California appraiser Ryan Lundquist proclaimed March 11th which was the date Tom Hanks announced he and his wife had contracted COVID-19. Phil Crawford of Voice of Appraisal said the demarcation line was March 5, 2020 dubbing it “data point zero” and I had originally said the demarcation line was March 3, 2020, on the day of the 0.5% rate cut in March.
I was talking about this difference in these dates with a friend, Chicagoan, and RAC appraiser Michael Hobbs who brilliantly dubbed this four-day window from March 11 to March 15 as: “From Hanks To Banks.”
And if you do the math, the median and average date of March 11 and March 15 is literally Friday the 13th so what more confirmation of a demarcation line do you need?
Whatever your specific local demarcation line is, use it to keep the data for these two market periods separate.