With the 3 banks that just collapsed, many of you are calling me to ask me if this is the beginning of another 2008 . . . the answer is NO!
Many of us forget that the 2008 collapse had to do a bit about the economy and A LOT about the poor lending practices we saw years prior to the banking collapse.
Now does this mean that these banks collapsing have not affected the housing industry? Of course not. These types of events ALWAYS affect housing and the stock market.
In fact, we immediately saw interest rates drop by a half percent which is great. Will the rates again drop to 2 percent for a 30-year fixed? No!!! It is highly unlikely. In fact, we may not see 2% interest rates again for a few decades.
Are homes going to continue to go up in double digits year-over-year . . . NO!!! Although we won’t see home prices tumbling down to 2008 levels, these banks collapsing do and will slow down the housing market which always affects real estate prices. How much will remain to be seen?
Currently, we are now starting to see real estate prices come down quite a bit more than they have in the past. In some areas like the Inland Empire, prices are coming down faster than in other SoCal areas.
With that being said, we are still seeing multiple offers on properties that are priced right and are in certain locations.
What does this all mean for you? If you are not planning on selling or buying, nothing. Sit tight and things always work out.
If you are thinking of selling, call me and let me help you get top dollar in today's market.
If you are thinking of buying, call me, and let's get you qualified for a home loan and see if we can take advantage of the temporary drop in interest rates.
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