Should the SVB collapse deter first time home buyers?

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No. This is completely different than the ‘08 financial crisis. You should not put off a purchase because you are afraid of a financial crisis driving down home prices.

With that being said, I wouldn’t buy my first house right now. Rate hikes have not had enough time to flow through to home prices in my opinion. Not a great entry point now.

This is a general statement of course. Real estate is a game of local markets so it needs to be taken on a case-by-case basis.

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Not unless you work for SVB.

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I’m a first time home buyer and waiting 12-15m before purchasing. Home prices still need to come down.

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Associate Director, what do you think will cause home prices to come down?

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Unless you’re a start up company with VC backing and hold over 250k in excess cash that you need in the next 4 months, no.

I get that I’m being a little snarky but, any individuals will have access to at least 250k of their cash on Monday morning. Bank failures spook the market because it’s rare. Big bank failures are even more rare but, this isn’t something that will effect every bank. SVB was unique in a lot of ways and isn’t a canary for other bank failures coming down the pike.

No

Why would SVB collapse have anything to do with being a first time home buyer? Because they had their own risk management skills to put $80 billion of deposits into MBS and sold before maturity?

Because the economy is tied together and sectors don’t operate in a vacuum… there will be a ton of business that go under because of this. And we don’t know how/if other banks will be affected

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