Whoa, what a way to end the week last week. I assume you saw the news of the largest bank since 2008 to collapse, Silicon Valley Bank (SVB). The purpose of this newsletter isn't to discuss hot news, but this news does and has affected the real estate market. Since the bank failure, the 10 year treasury bond which we closely track to monitor the 30 yr interest rate has come down considerably. Thus, the all important mortgage interest rates ticked down a bit, and may continue lower, as many expect the Fed to decrease the rate at which they fight inflation with their own rate hikes, or possibly take a pause. If you'd like deeper insights on my thoughts about SVB, feel free to DM or email me.
Moving along, the CPI report came out this morning meeting estimate expectations with no surprises. This is a key data point that will make the Fed's decision a little easier to swallow if they do indeed take a pause. The PPI numbers come out tomorrow, and that could throw a wrench in things, but we'll see.
With all that fun stuff out of the way, we are in our market stats update week. You'll see below, listings are down month over month (MoM), but pending sales and closed sales are increasing. I really hope we get more houses to come on the market soon, they should be as per seasonality, but it's not showing up, yet. I'll say it again, my fear is not a housing crash, it's another version of the 2021 market. Unhealthy.
Finally, I have some buyers that are in contract on a beautiful new construction home in Lincoln, CA. We need a little help to close escrow for them. They own a home in Discovery Bay, CA that needs to be sold and was recently listed for sale at $839,000. If you know anyone, the main picture above is their home and linked to
Zillow. It's in a wonderful, gated community with tons of recreation in-between the Bay Area and Sacramento. If you know someone looking there, let me know and I'll get them in touch with the listing agent.
What are you seeing or hearing? I'd love to know paul@guiderealestate.com
