What You Need to Know About Banks Failing, Interest Rates and the Spring Real Estate Market?
So, we had a few silicon valley banks fail over the last few days. Here’s some info that may be helpful as you follow that story.
Did you know that these banks were the heaviest in crypto?
Did you know these banks gave massive risky loans to startups based on their cash flow?
Well, the fed stepped in and unlike 2008 when it cost the taxpayers billions of dollars to bail out bank after bank, this time they did it differently.
They went to the owners, investors and such. They liquidated them to make the deposits whole again. I will keep an eye on this to see what collateral impact it may have on the market.
What about interest rates? We are still fighting inflation, so I would imagine rates will continue to fluctuate. Over the next few months expect to see rates go up and down. Home prices are still holding in most areas as quality home inventory is still low.
Two Things Sellers Need To Know This Spring
A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.
1. Houses That Are Priced Right Are Still Selling
Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains:
“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”
While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling.
2. Buyers Are Still Out There
As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:
“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”
That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.
Bottom Line
No one can tell you what's coming next because it simply has not happened like this before. New history is being made right now. However, there are still clear opportunities for sellers and buyers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
