Those ubiquitous 3M N95 dust masks are becoming less so, thanks to coronavirus fears. Wood Floor Business reports that flooring pros and other contractors are competing with the general public now to purchase the masks, and that retailers such as Home Depot are limiting sales to 10 per customer now. In many locations, the masks are out of stock, even though public health officials are advising that they should primarily be worn by those who are displaying symptoms to avoid spreading the virus, rather than by those who are seeking to avoid infection.
While a dust-mask shortage may be a minor annoyance, the short- and long-term health implications of COVID-19 remain unclear, and financial institutions and markets are definitely rattled, reports NAHB economist Robert Dietz:
"Economic activity associated with travel and meetings will decline in the coming months. Due to expectations like these, the Federal Reserve reduced the target fed funds rate by 50 basis points this week — the first emergency cut since the 2008 financial crisis. The stock market has declined more than 10% as investors shun equities and seek out lower risk assets. These behaviors have reduced the 10-year Treasury rate to a historic low of less than 1%. This implies an average 30-year fixed-rate mortgage of near 3%, which is a positive for housing demand. However, consumer confidence is likely to decline in March due to coronavirus concerns.
NAHB is expecting economic growth will be weaker than what was forecast just a couple months ago. Yet history teaches us that after "black swan" events such as natural disasters and health epidemics, a few quarters of economic weakness are typically followed by an economic rebound. Meanwhile, housing should outperform other sectors due to lower mortgage rates. Yet, supply-chain issues on building materials (including a wide variety of items such as face masks, lighting, plumbing fixtures, etc.) may cause bottlenecks in the months ahead."
As Dietz suggests, contractors should keep a wary eye on their supply-chain as they wait for a clearer picture of the current public health situation to emerge. Meanwhile, check the NAHB website for an ongoing analysis of how the virus and its spread could impact the housing market, as well as resources for business to help prepare the workplace.
