Tuesday Real Estate Update #TREU: Silicon Valley Bank Shut Down and Property Sharks
Audio only
Silicon Valley Bank bail out, what’s coming?
Silicon Valley Bank bail out, fractional banking only requires 10% reserves of deposits, FDIC covers less than 2% of deposits? $40 Billions withdrawn in one day?
At the current trend, we may expect the following:
Maybe more banks mergers coming.
Tighter mortgage lending as banks are getting the pressure of keeping better reserves and books.
Potential for more investment money coming into real estate.
More cash buyers and higher downpayment buyers will have bigger leverage.
Higher rate, cooler house price continues this spring.
New home builders will slow down due to expensive to borrow money and new home demand is softer. This exacerbate overall inventory shortages.
tips for home buyers and owners
Anything more than $250k in your account should be moved to separate bank accounts for federal insurance coverage.
Property sharks out there. They do borderline illegal whole sales. Check with your local trustworthy realtor to see all the options you have, before talking to any of these whole sale, property sharks. Almost 99.9% of the time, you will make more money by going through the traditional channels of listing your home for sale publicly and attracting many buyers.
Real Estate Market Overall Trend in the last 3 years.
Financial Sector volatility and what we might see in mortgage rate.
Buying New Homes in 2023 the right way.
Residential vs. Commercial landscape shifting.
Year over year trend may appear sluggish, but it’s more of 2021 and 2022 fast train slowdown, not market crash like some fear mongering media portrays. So don’t panic.
Poorly managed banks are being bought up, so quantitative easing (QE) might be coming sooner than expected. Not because we solve the inflation problem, but to prevent banking system collapsing. With that pressure, we may see lower than 6% mortgage rate this spring and summer which fuels the real estate market. Typically speaking lower interest rates, higher real estate price. Higher interest rates, lower real estate price.
New home builders are offering lower interest rate and price discounts. Many home builders use short term financing. With a higher cost to borrow money, they need to sell left-over inventory to move to new phase of construction. So if you are looking for a new home this year, ask for more incentives and price reduction. And as always look for the best lot in the subdivision. How to find a right home in new subdivision video from 2019:
Calmer waves in residential, bigger waves in commercial section. Due to high office and retail vacancies, especially in downtown areas. Big tech layoffs creating potential ownership change in commercial real estate as home office demand continuously growing since the pandemic.
Real Estate Question: Which one would you buy as your first property? Multiplex SF Townhome Condo
I’ve been selling real estate for the last 15 years and here’s my favorite residential real estate to invest in (in the order).
Multiplex
Single family home
Townhome (least HOA fees and rules are better)
I’m a big fan of duplexes and triplexes. These tend to have the most optimal balance between price, return and appreciation. Real estate is local data specific, but you may apply this preference broadly in the U.S.
As I mentioned in the video, condos are better than renting, especially in long term.
If you’re in Oregon and want to chat about your situation, please fill out the form below.
Discover a mix of fresh Oregon seafood, especially at the peak of Dungeness Crab season, and an assortment of alcoholic beverages at the Portland Seafood & Wine Festival. Come with your friends and family to this event which features over 60 of Oregon’s finest wineries, craft beers, cider and distilled spirits. No need for the usual seafood-white wine pairings in this festival!
Location
Portland Expo Center 2060 Marine Dr W Portland, OR 97217
What do you call an art show, live street concert and open-air bazaar in one? The Portland Saturday Market! This event will be held from March 4th to December 2nd. Plenty of chances to come check it out one Saturday of the year. When you do, don’t forget to support our local artists at this event!
Location
Tom McCall Waterfront Park 98 SW Naito Pkwy, Portland, OR 97204
This year, Shamrock Run celebrates 45 years of running and features races with multiple distances. Have your kids run around a one-mile Leprechaun Lap or put on your gear for a half-marathon. All races will start and finish at Tom McCall Waterfront Park. After a tiring run, you’ll still cross the finish line with a smile at the ‘Finish Line Festival’, filled with green beer and live music!
Location
Tom McCall Waterfront Park 98 SW Naito Pkwy, Portland, OR 97204
With the coming spring, The Wooden Shoe Tulip Festival blesses us with acres of tulip fields in full bloom. Take advantage of this gift from nature that we can witness once a year!
Location
Wooden Shoe Tulip Farm 33814 S. Meridian Rd, Woodburn, OR 97071
The Worst Day Of The Year Ride features a 15-mile Urban course and a 42-mile Hill Climb Challenge course. Breakfast, half-time party, photo booth, costumes, lunch, five-story chocolate fountain, maps for the courses, mechanical support and on-course transport are what’s in store when you register and participate for this event! This might be the best way to turn around the worst day of the year!
Location
Lucky Labrador Brew Pub โ Hawthorne 915 SE Hawthorne Blvd, Portland, OR 97214
