Real Estate Information Archive

If you have been thinking about selling now is the best time since the spring of 2005.  But, only if you have a property valued under $350,000.  FHA requires just 3.5% down payment, so obviously, there are a lot more buyers in that price segment.  The over $350k market is actually better than it has been because the move up buyers can get their home sold now due to all the first time buyer programs including the $8000 stimulus money. 

I just attended a class on how the $800,000,000,000 stimulus package is going to affect the real estate market.

I can’t give three hours of information in 57 seconds so here’s the scoop in a nutshell.  If the package passes in its present form and it looks like it is, here’s what to expect.

The real estate boom of 2000– 2004 will look like a night at the nightcrawler races.  Everything priced under $325,000 will sell.    Buyers will not be able to cut the seller’s legs off at the knees any more.  Here’s why.  Every buyer will receive a $10,000 tax credit (gift) from the government if they purchase a home within 1 year of the bills passage.  So many buyers  will be clamoring for the windfall that sellers will hold firm to their asking prices and buyers will be bidding over asking price in order to get the house.   

What’s so magic about $325,000?  The FHA  loan limit is $310,500.  PMI (private mortgage insurance) companies have priced conventional loans out of the market except for those with lots of money… like my dentist and cardiologist (sorry Doc) !   Or those who have 20-25% down and credit scores over 740.  FHA  is the main game in town.  Jumbo loans over $417,000 are still available but horribly expensive.         

The bad news is, loan processing will come to a screeching halt as mortgage and title companies won’t  keep pace since they laid off all their staff.   

SO WHAT?

Get your kids a house.    Sell now if you have been waiting.