So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”
XBoxBoy
That’s too funny! I can see it actually happening.
If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.
