Tuesday Real Estate Update #TREU: Silicon Valley Bank Shut Down and Property Sharks

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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 $40 Billions withdrawn in one day?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.

*not financial advise, Check with qualifies CPA.


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