Observations by a Beverly Hills Realtor: Endre Barath,Jr.

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

This week has been a bit challenging to say the least, as we celebrated International Women's Day to commemorate the achievements and advancements of women around the globe lot of other things have happened.  The Job Reports came out and it overshadowed the fact that March is also Women's History Month.

All that said, all eyes were on the jobs report on Friday morning.  It would have taken a shocking event such as a massive natural disaster, a major military escalation involving the U.S. to overshadow these numbers since they control Interest rates.

Well go figure there was something that would overshadow this very important number, just to be clear and go further, we had something we have not had since 2008 a Bank failure.

Now keep in mind this was a high-profile bank failure.  While Silicon Valley Bank (SVB) wasn't even a tenth of the size of the Chase or B of A, it was nonetheless the 16th largest bank in terms of assets, bigger than household names like Morgan Stanley.

 20230310 bnl0.png

Well, a lot of pundits are freaking out and asking: What is next?

Let's be clear everyone will turn their attention to next Tuesday's Consumer Price Index (CPI)--the only other monthly economic report in the same league as the jobs report.  On several occasions in the past year, it's had an even bigger impact.  

We know the Fed wanted to see the jobs report and CPI before deciding on the size of the next rate hike.  Markets clearly think the bank failure news will serve as evidence that the Fed's restrictive monetary policies are now causing substantial damage to sectors of the economy beyond the obvious housing and mortgage market.... Clearly, I am not the only one of this opinion. 

Keep an eye on the pundits, Economic Experts, Lenders, Bank Spokes people you name it. Now with that said let me know what your thoughts are? Personally, I think the Fed needs to stop meddling and let the economy fair on its own. Now with that said the savvy buyers and sellers are still out there I know because I am getting offers on my listings as we speak even after this distraction.

www.endrebarath.com

Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708

 

 

 

 

Comments (23)

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Endre - our everyday life continues to combine a lot of events and things of all kinds.  Occurring simultaneously as well as independently.  Or seemingly so.   Maybe there is an interconnectedness to the big picture.  Or perhaps it's a part of the minuteness of details.  

Mar 11, 2023 05:04 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Endre... I second that motion:  "Personally, I think the Fed needs to stop meddling and let the economy fair on its own."

Mar 11, 2023 05:29 AM
Nina Hollander, Broker

Ray Henson hi Ray... every time I see one of them speak (including our Treasury Secretary), all I can think is "idiots."

Mar 11, 2023 07:52 AM
Ray Henson

Well said, Nina Hollander, Broker!  

Mar 11, 2023 07:57 AM
Ray Henson

It always amazes me, Nina Hollander, Broker, how many times the Fed can screw up so badly and continue to be held in such high regard.  I am with you.  I would like a much less intrusive Fed.  It would also be helpful for our politicians to stop flooding our country with excess dollars that continues to create such persistent inflation.

Mar 11, 2023 07:50 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Another Day, another worry for some who are ready to sell and ready to buy Endre!

Mar 11, 2023 06:04 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Silvergate is also shutting down.  What is very interesting about both cases is that it was US Treasury Bonds loss in value that crippled them, an investment that is thought to be ultra safe, but really is not.  As interest rates rise, the principal in those bonds drop.  You have two very innovative companies failing because they invested in time honored investments.  It makes me wonder how many other companies are in similar situations.  It will get worse as the Fed continues on their merry way to hike rates and continue with their quantitative tightening.

On a personal note, my stock investments (and bonds) have been hammered.  It makes me chuckle every time I hear an expert say we are headed for a soft landing. I define soft landings much differently. 

Mar 11, 2023 07:46 AM
Debe Maxwell, CRS

Oh, AMEN to the use of 'soft-landing,' Ray!

Mar 14, 2023 09:25 PM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hello Endre Barath, Jr., I completely agree with what you said, the Fed needs to stop meddling but will it happen, probably not. Almost all of my buyer clients since November 2022 have been investors from other countries, all-cash buyers purchasing new townhomes. Listings are definitely taking much longer to get offers. We shall see what the future brings our way.

Mar 11, 2023 09:32 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Endre I keep a very close watch on the market and what's happening every day.  And I agree the CPI will be interesting and will show a bigger picture. I do expect the fed to keep hiking. Besides the insane administration financial etc policies and the fed hiking rates we're heading for a hard landing on many levels for a lot of people.  It reminds me very much of the 70's. I learned a lot from my Dad back then as to what to do and what to look for.  Albeit back then I had no real idea! But it did get me started down the path of asking questions and learning about all this stuff.  And here we are all these years later....we're back to square one.  Makes you wonder how ignorant people in charge can be about how to create prosperity - very.

 

And with all that said - real estate in my area keeps going up.  We're still in a sellers market, just not a crazy frenzy market - thankfully! Homes are selling within a few days to a week and closing. A lot of people are still moving here from other states and I don't see that ending anytime soon.

Mar 11, 2023 09:37 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Endre Barath, Jr.  I agree whole hardly with you - The election is coming!  Who will save the day?

Mar 11, 2023 11:05 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre the full impact of this bank failure is still to be seen.  I can't see anything good coming out of this.

Mar 11, 2023 02:22 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre Barath, Jr. - This is something to watch closely.  However, I still feel that the biggest reason we are having high inflation is because of the terrible policies on energy.  This administration has no concept of how its policies ripple across the American and global economies.  Higher fuel prices affect all sectors of the economy at every level.  That is why we are in the mess we are in.  Now the powers that be think that handcuffing corporations and high-wage earners will bring in a bounty to the Federal coffers.  Many will relocate out of the country further decimating our ability to manufacture goods.  

Mar 11, 2023 05:21 PM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

I realize that some are excited that baseball season is coming soon - but this is not the kind of curveball anybody wanted.

Mar 12, 2023 10:55 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia Feager, MBA, CRS, GRI,MRP  I hope this does not create a Panic and other bank will get into similar situation, Endre

Mar 12, 2023 04:39 PM
Patricia Feager, MBA, CRS, GRI,MRP

Endre Barath, Jr.- I am paying attention to what happened yesterday to Silicon Valley Bank in CA. A short while ago, Yellen has been in the news about not giving them a bailout.... then later she has a plan.

This is nail biting 

Mar 12, 2023 05:00 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne Martin  you are absolutely right, Endre

Mar 12, 2023 04:42 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Brian England  sadly your comment is perceived by many and agree with you. Endre

Mar 12, 2023 04:44 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Jacobs  where you a Greek Philosopher in your previous life? Endre

Mar 12, 2023 04:53 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander, Broker  we are on the  same page, Endre

Mar 12, 2023 04:54 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Can we fire our fed chair? Powell is not the sharpest tool in the shed and he is simply 'playing' with our lives!

Stay alert, focused and think for yourself - just as you laid out, Endre. Great information!

Mar 14, 2023 09:23 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400  just adds one more layer into the conversation for a Realtor, Endre

Mar 14, 2023 09:27 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ray Henson  your comment stands on its own.... and how ironic, I read something that the Israeli investors were warned on Wednesday to pull their money out from Silverglate? Hmm makes you wonder insider information????

Mar 14, 2023 09:29 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Beth Atalay  are on the same page again, it is becoming a habit:) thank you for the Feature, Endre

Mar 14, 2023 09:37 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten Phoenix Broker  like you I was involved as the helper in my father's purchase in the 70's and oh boy shades of those days today.... the bottom line is he had his own home no landlord to deal with and lived happy as the interest rates climbed and the home values climbed as well... he sold in the bottom of the market and doubled his money:)Endre

Mar 14, 2023 09:39 PM
Anna "Banana" Kruchten

Endre understood.  My Dad was the kind of guy who payed cash for everything, including homes. He also bought a farm for my Grandparents in his 20''s.  Really good guy and very smart businessman.

Mar 15, 2023 09:13 AM