Good morning! I was thinking yesterday about the announcement last Friday of the new conforming loan limits for 2009. I think it's great news! In the tri-county area of Seattle, it means that the new limit is $506,000 next year, up from $417,000.
In our area, even though the average home sale was $399,000 lately, that doesn't buy much. A nice family home with room is probably more in the neighborhood of $500-600,000. That's why I think the new conforming loan limits are good. Granted, it's unclear what will happen to jumbo loan limits above this. But I think banks will start to offer reasonable loans above $506,000 as well.
I believe this is all pointing toward a housing recovery sometime next year. I've seen some builders building again, lenders offering more choices on purchases lately, and, with the new conforming loan limits, I'm hopeful the consumer will recognize a great time to buy or refinance. As with anything time will tell. I'm just encouraged by the new loan limit. It's the first piece of good news we've had in a while. Have an awesome day!
Paul McFadden
Good news indeed, Paul! It may not come back next year, but perhaps we are at least seeing the bottome. So from here everything goes up!
Bo
Thanks, Bo, for your comment. I appreciate it. Have a great day and keep your chin up always!
Paul, may your words be Prophetic. I think it is a good start. As long as the Stock Market will remain so erratic, I believe buyers will start gravitating back to Real Estate. Especially with all the incentives thrown in their direction.
Endre: Thank you. That's a very good point. Investing in real estate has not been cool since probably 2006 so it may be time again. The bargains are definitely out there and I believe the stock market will not rebound until sometime next year at the earliest.
Thanks Paul for sharing a POSITIVE view which seems very rare these days! I'm with you in your thinking that we're at the bottom and 2009 should be a better year.
Debe: You're welcome! Let's keep our fingers crossed! Enjoy your day!
I like some of your articles on activerain and I'm going to put a national referral group together at www.realestateloans.com within the next few weeks with some contacts accross the country.. I'd like you to consider joining my group. REL has just opened up their domain and I think its going to be great for us as an industry.
Mike Rogers
http://mikerogers.realestateloans.com/
Thanks, Mike. I will do that. I appreciate you thinking of me. Have a nice day!