Segment 1 – How Will the Bank Failures Affect the Housing Market

We air the Real Estate Voice show every Saturday, if you cannot listen to the whole show, it is available on Barb’s site: BarbHasTheBuyers.com, or search Barb & most podcasts like IHeart Radio

Every week the Real Estate Voice covers excellent information about the housing market and one of their most significant assets – their home. Barb What will we be covering today?

• How Will the Bank Failures Affect the Housing Market
• How to Avoid Red Flags on a Home Inspection When Selling Your Home
• Top Agent Hiring Mistakes
• How to Get Your House Ready for Sale – Hot New Listings

Barb, Recently Two Banks Failed causing a run on the bank creating lots of financial uncertainty in the market. Some people wonder if history is repeating itself with and crisis like 2008. What impact will the bank failures have on this housing market?

As to Whether this is like the 2008 Mortgage Meltdown? Answer = NO
1. 2006-2008 people got mortgages they could not afford at teaser rates.
2. Rates adjusted – Stopped paying those mortgages
3. Because it was so widespread it affected the entire market

Changes Since:
1. Law REQUIRES borrower to qualify at the ultimate rate
2. Lenders could face jail time for compliance.
3. Market prices increase = people have equity

Rates dropped nearly ½ percent Since Bank Failure
• People are HOPEFUL fed will NOT raise rates this month
• Buyers purchase on House Payment – not the sticker price

Fed is Bailing Out the Silicon Valley Bank Difference this Time: FED is going to sell off the banks assets for Repayment
• Wipes Out the Banks Stock Value
• No Executive Gets Paid
• Depositors are made whole by Govt Money Printing

Why Did This Bank Fail?
• Depositors / Tech Companies running out of $
• Weak Bank Investments Not Covered
• An Analyst Short Sold it Causing a Run on the Bank
• Depositors all Went to Get their Money Out…Oops Not There!
• In 2020 when the Pandemic hit – the FED:
– Reduced the Bank Reserves Requirement to ZERO
– Pandemic is over – NO Change in Reserve Requirement

Who banks at this Silicon Valley Bank – Open Door Who Lost $1 Billion Last Quarter
Affect on Housing Market – Lower Mortgage Rates Initially
• If Fed does not raise the stock market may like it
• The Housing Market will too

43 % of Home Buyers are Millennial or Gen (25-51) They Have Never Seen Rates Above 3.5% I think this will all normalize very quickly But I don’t think we will see rates at 3% again in our lifetimes

What Home Sellers Should Expect:
1. Bidding Wars Days Have Ended
2. Expect Longer Days on the Market
3. Expect Buyers to be Pickier Than Ever – Home Preparation is Key

What Home Sellers Do:
• Prepare Their Home for the Highest Price
• Price it Right
• Hire the Agent Than is an Expert in Promotion and Pricing

Home Sellers Should:
• We Will Cover Agent Hiring Mistakes:(bottom half of the hour)
• Home Sellers Should Hire the Agent That Knows the Market
• Helps You Price it Competitively

Make Sure You Get the 3 Ps Right – Preparation, Pricing, and Promotion
We will be discussing this in the last segment

If You Are Thinking of Making a Move
• We Can Help you in Any Market
• Homes are Selling all the Time

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Been using it since 2014
I have: 27,000 Buyers-in-Waiting
I have 100 Buyers that are a High Match for any home.

If You Are Thinking of Making a Move in the Next 2-6 Months and Want a Free Consultation: Go To Barb Has The Buyers.com Button in the Center: Find My Buyer

If You Are Planning to Move Later this Year and want one of our Free Reports that will help you Prepare to Sell for the Most Money Like the report entitled: “The Top 7 Tips To Sell Your House Fast and for Top Dollar” Go To Barb Has The Buyers.com Button at Top: Free Reports Or Give us a Call at 719 301 3900 ask for Barb

You are listening to the Real Estate Voice with Barb Schlinker of Your Home Sold Guaranteed Realty, if you are thinking of
making a move Barb at 719 301 3900 or visit BarbHasTheBuyers.com

When we come back…. we will be discussing: Home Inspection Issues To Avoid When Selling Your Home

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The recent spate of bank failures has caused concern among homeowners and potential buyers alike about how it will affect the housing market. With several major banks going under, many are wondering what the implications will be for the real estate industry. As a leading real estate expert, I want to address these concerns and shed light on the potential impact of bank failures on the housing market.

First and foremost, it is important to understand that the failure of a bank does not automatically mean that all mortgages and loans will be lost. In most cases, failing banks are acquired by other financial institutions, which means that the mortgages and loans they held are also transferred to the new owner. This means that for most homeowners, there should not be any immediate impact on their mortgage payments or home ownership.

However, there are some potential indirect effects of bank failures on the housing market that should be taken into consideration. One of the biggest concerns is the availability of credit. When a bank fails, it can create a ripple effect that makes it more difficult for potential buyers to secure a mortgage. This can lead to a decrease in demand for homes, which could in turn cause prices to fall.

Additionally, the uncertainty and instability caused by bank failures can also impact consumer confidence. When people are unsure about the financial stability of banks, they may be less inclined to make large investments such as buying a home. This can lead to a slowdown in the real estate market, as people wait to see how the situation unfolds before making any major financial decisions.

Another potential consequence of bank failures is the impact it may have on the overall economy. When major banks fail, it can lead to a domino effect that affects other areas of the financial system. This can result in a tightening of credit and a slowdown in economic growth, which can have a negative impact on the housing market.

In light of these potential impacts, it is important for homeowners and potential buyers to stay informed and be prepared for any changes in the housing market. It is crucial to work with a trusted real estate professional who can provide guidance and support in navigating any potential challenges that may arise.

How will the bank failures affect the housing market? It is difficult to predict the exact impact, but it is clear that there is potential for some turbulence in the real estate industry. By staying informed and working with a knowledgeable real estate expert, homeowners and potential buyers can make informed decisions and weather any potential challenges that may arise.

If you have any questions or concerns about how the bank failures may affect the housing market, feel free to reach out to me. I am here to provide guidance and support to help you navigate the real estate market with confidence. You can contact me at (719) 301-3900.