A lot of people have asked how the demise of First Republic bank is affecting the housing market. Behind the scenes we saw real estate firms swiftly move their hefty escrow accounts which held customer deposits to bigger banks as soon as there was even a hint of a problem at the bank. (Post SVB collapse.)


There was disappointment among consumers about the bank closing, but not a noticeable effect beyond that. Clients who had taken mortgages out for their purchases were nervous, and some pivoted to other banks, while many took a deep breath and followed through with First Republic. Overall though, the urge to buy still seems strong among those who really want to move and this situation did not slow down the pace of sales.


The real problem for banks will come in the commercial sector, experts predict. JP Morgan's CEO told the Inman news group the following regarding his concerns.


"For months now, some economists and analysts have pointed to commercial real estate as a potential problem for banks, as the pandemic spurred more workers to take advantage of fully or partly remote jobs. One result of this? Less demand for office space.

And for lenders who provided the funds to build some of these offices and other commercial properties, any distress from commercial properties might jeopardize their hopes of getting their money back.


This dynamic could create an uncomfortable environment for some banks — but not every bank, Dimon said. Smaller lenders are expected to be more exposed to the risk from commercial real estate."

It continues to be a late spring selling season for us. A number of great houses came on last week in all price ranges and in turn had accepted offers quickly. After this weekend I think that trend will continue into June as agents launch new listings during a time that generally means we wind down. Look at how many houses had accepted contracts last week, the numbers are very impressive and the remaining properties for sale is a low amount.

I will end this week with a little self promotion. It was exciting to hear I was named a top producer once again by Boston Magazine. Always an honor!! Couldn't do it without the referrals and loyalty I get from all of you. Thank you!

Finally, I hope you enjoy this Memorial Day Weekend with your friends and family. I know I will, as each year we use this time to go away and reset after a long winter defined by hard work!

I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.