I just noticed this article.

http://www.housingwire.com/2011/09/16/extension-of-conforming-loan-limits-fails-in-house

So it looks like the high conforming loan limits will expire and go back to the old lower loan limits. There is some chance that the high limits could be reinstated in a bill expected to be introduced late this year. This quote from the article is spot on IMO:

“We expect to see significant negative consequences for the struggling housing market as a result of the limit drop after Oct. 1,” Campbell’s office said.

Combine the end of high loan limits with the fact that California foreclosures are set to surge and we should be seeing much lower prices shortly.

http://www.housingwire.com/2011/09/19/california-foreclosures-set-to-surge

This probably isn’t being discussed very much on this board because most have already bought and there are only a few holdouts like myself left.