Buyers will still have to get an appraisal, cough up a down payment and they can’t use a liar loan to qualify for what is still over-priced housing when compared to most markets in the country. Add to this, San Diego has been designated as a “declining market” which means the buyer has to cough up more money and jump through more hoops before the loan can close.
Frankly, the only people that I see who are going to be helped by this are people with decent credit who are current on their payments and who need to re-finance if the loan is under the new limits (provided the home hasn’t already dropped too much in value from when they bought it)……..or a buyer who buys into all the hype that NAR and CAR will start slinging and goes shopping for a home with his wallet in his mouth for the scabs to steal.
It’s not going to make a dent in the myriad of problems that plague the housing market in the bubble markets. Prices will continue to fall as more and more sellers give up and phase out of the denial stage and move into acceptance.
