The big news of the banking collapse doesn’t have to be bad news for real estate.

If you’ve been watching the news, you can’t help but have heard about the SVB collapse and other negative news surrounding our financial sector. This kind of banking news always has Americans hitting the panic button, but the way this impacts real estate, in particular, is more nuanced.

For one thing, the news demonstrates the need to have your money in real assets. These are assets that the banks can’t control, and the government can’t take. Having your money in real assets, like real estate, your money will be a lot safer.

“This kind of banking news always has Americans hitting the panic button.”

The second thing is that this hasn’t really impacted the bigger banks like Goldman Sachs, U.S. Bank, Wells Fargo, and others. These banks are the most secure and carry the most insurance against this type of thing. People might be starting to panic, but I don’t think that this will impact real estate very much at all. When a bank collapses, and you own the home, you own it. They can’t take that away from you. In fact, it might just help to drive interest rates lower.

How could this be? Well, it’s because the government cannot afford to raise interest rates right now without risking making banks even worse off financially. All of this was initially caused by the sudden rise in interest rates. To avoid the risk of more banks going under, the Fed will have to step in and help, which means there is pressure to lower interest rates. We could see rates dropping into the sixes in the next couple of months and possibly hitting the fives by the end of the year.

This is why it’s essential for anyone looking to transact in real estate to know the facts. Remember, if you have any questions about the bank collapse or real estate in general, please feel free to reach out to me by phone or email. I would be happy to discuss it with you and get your questions answered.