The Real Estate market has put on the brakes but not stopped.
For all of 2007, existing home prices fell 1.8% and represented the first nationwide decline in houses since the Realtors started tracking this data over 40 years ago. However, we have experienced historic gains of over 100% in the past several years in many parts of the country, so 1.8% year over year decline is not so bad. If the stock market doubled in the past three years and the market then declined 1.8% - would it make headlines? We are seeing a buyer’s real estate market along with mortgage rates at three year lows.
Also of note, there are rumors that the conforming limit may be raised from $417K to $625,500 as it already exists in Hawaii, Alaska, Guam and Virgin Islands. It’s just a rumor but if it were to happen this would be a sensational opportunity for all our Jumbo clients as essentially it would represent a 1% reduction in interest rates. Let's all hope this conforming limit does get raised.