GSE limits slated to drop (PLUS bonus question for mortgage experts)

[bearishgurl]

[quote=earlyretirement]…The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.[/quote]

The MID (up to $25K annually for a personal residence) is the ONLY reason wealthy buyers take out a mortgage at all. If this were eliminated, these homeowners would simply retire their mortgages.

[bearishgurl]

[quote=earlyretirement]The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.[/quote]

I’m not a “bull,” ER. I actually think the gov’mt should return the conforming limit to $417K. That’s more than adequate to purchase a $521,250 property with a std 20% downpayment (which is higher than the current median sold comps in most CA areas).

Even if this happened, I STILL don’t believe it would affect the values in coveted coastal areas. There are too many buyers who have the money to purchase exactly what they want where they want in these areas and whatever the govm’t decides to do will have little impact on their decisions. It is what it is.

[bearishgurl]

[quote=earlyretirement]The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.[/quote]

I’m not a “bull,” ER. I actually think the gov’mt should return the conforming limit to $417K. That’s more than adequate to purchase a $521,250 property with a std 20% downpayment (which is higher than the current median sold comps in most CA areas).

Even if this happened, I STILL don’t believe it would affect the values in coveted coastal areas. There are too many buyers who have the money to purchase exactly what they want where they want in these areas and whatever the govm’t decides to do will have little impact on their decisions. It is what it is.

[bearishgurl]

[quote=earlyretirement]The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.[/quote]

I’m not a “bull,” ER. I actually think the gov’mt should return the conforming limit to $417K. That’s more than adequate to purchase a $521,250 property with a std 20% downpayment (which is higher than the current median sold comps in most CA areas).

Even if this happened, I STILL don’t believe it would affect the values in coveted coastal areas. There are too many buyers who have the money to purchase exactly what they want where they want in these areas and whatever the govm’t decides to do will have little impact on their decisions. It is what it is.

[bearishgurl]

[quote=earlyretirement]The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.[/quote]

I’m not a “bull,” ER. I actually think the gov’mt should return the conforming limit to $417K. That’s more than adequate to purchase a $521,250 property with a std 20% downpayment (which is higher than the current median sold comps in most CA areas).

Even if this happened, I STILL don’t believe it would affect the values in coveted coastal areas. There are too many buyers who have the money to purchase exactly what they want where they want in these areas and whatever the govm’t decides to do will have little impact on their decisions. It is what it is.

[bearishgurl]

[quote=earlyretirement]The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.[/quote]

I’m not a “bull,” ER. I actually think the gov’mt should return the conforming limit to $417K. That’s more than adequate to purchase a $521,250 property with a std 20% downpayment (which is higher than the current median sold comps in most CA areas).

Even if this happened, I STILL don’t believe it would affect the values in coveted coastal areas. There are too many buyers who have the money to purchase exactly what they want where they want in these areas and whatever the govm’t decides to do will have little impact on their decisions. It is what it is.

[sdrealtor]

Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.

[sdrealtor]

Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.

[sdrealtor]

Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.

[sdrealtor]

Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.

[sdrealtor]

Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[Author]

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