It certainly seems like this should have some kind of impact above ~$750K. $682K and below purchase prices are not affected, assuming 20% down. I mean, if I was trying to sell a house for $800K, I would definitely want to consider the dynamics.
Not being on the front lines of the business like some, I was trying to imagine what the impact to areas like NCC could be. I could see some potential factors that could minimize the effects, like:
– Dont worry, FHA loans will cover the bases (I dont understand FHA, is this possible?)
– Private jumbos will come in line. (yeah, maybe after storm blows over, 2014)
– The Fed troops will ride in before 2012 and bump the high balance back. (seem like it would be mid 2012 at the earliest, once all hell continues to break loose)
– Given the _extremely_ limited number of quality properties in this range today, there will still be plenty of people that are packing $250K-$500K downs for any properties that you actually care about. (my limited experience does suggest this could be true to some degree)
