Are You a Bottom Feeder?
Real estate blog talk has quickly moved from the looming fallout of the lending crisis to the reality that it’s here. We’re no longer buzzing about the foreclosures to come. Instead, we’re talking about the foreclosures that are here, how lenders are responding and the development of new schemes surrounding the turmoil. Pretty soon we’ll shift with the market and the talk will turn to whether or not we have reached bottom. I think we have to be pretty close.
It looks like conforming loan limits will be raised, making it easier for homeowners to refinance higher priced properties at lower interest rates which is especially good news for San Diegans because our median home price is $505,000 which is above the existing limit of $417,000. It will also allow bigger mortgages to be purchased by public lenders which will relieve some private lenders who are holding onto troubled loans.
Realtors, developers and buyers are responding quickly because there is some urgency built into the temporary increase which is slated to expire on the last day of the current year. Even so, home prices really haven’t fallen as substantially as some had hoped they would by now. If we have indeed reached bottom, that means that home prices have only come down marginally from the median price of $517,500 at the height of the boom; not quite the reversal some had hoped for but good news for existing homeowners and sellers alike.
Recent San Diego Sweet Digs Posts:
News Blip – Stuff You Should Know
Monday Madness – You Have Permission!
