America's Banking Crisis
Is it time to take a breath... or are we just getting started?
First Republic Bank was seized Monday 5/1/23 and a bulk of their operations sold to J.P. Morgan Chase. This marks the third banking collapse of 2023 and the second largest in US history. The chain reaction started earlier this year with the infamous Silicon Valley Bank collapse followed by Signature Bank. Since March, Washington has made multiple efforts to restore confidence in the financial sector. Any security has been short lived, as stocks continue to fall and banks scramble to address investors' worries.
So what does this mean for the real estate sector? Real estate is strongly tied to the economic environment. Moving trends, price trends and rates are all indicators of financial health and affordability. Historically, when we see the economy start to stall, the FED will lower rates to spark spending. The last rate hike left both experts and consumers wondering if we'll ever see a halt. It's our hope that we'll start to see a gradual decline in June to encourage the buyers who have been stuck on the sidelines to get back into the market.