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[utcsox]

What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?

[outtamojo]

[quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467

[outtamojo]

[quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467

[outtamojo]

[quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467

[outtamojo]

[quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467

[outtamojo]

[quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467

[davelj]

[quote=outtamojo][quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467%5B/quote%5D

What I find interesting is that he’s only expecting another 5%-10% decline in housing and yet he thinks that this will have a big impact on the stock market. Housing prices have already fallen by ~10% in this recent double-dip and yet the stock market has roared ahead (much to my amazement, I might add). So, while I agree that a 5%-10% further decline in housing prices may well be in the cards… I’m not sure that it follows that the stock market will follow downward… although it would be nice to think so.

[davelj]

[quote=outtamojo][quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467%5B/quote%5D

What I find interesting is that he’s only expecting another 5%-10% decline in housing and yet he thinks that this will have a big impact on the stock market. Housing prices have already fallen by ~10% in this recent double-dip and yet the stock market has roared ahead (much to my amazement, I might add). So, while I agree that a 5%-10% further decline in housing prices may well be in the cards… I’m not sure that it follows that the stock market will follow downward… although it would be nice to think so.

[davelj]

[quote=outtamojo][quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467%5B/quote%5D

What I find interesting is that he’s only expecting another 5%-10% decline in housing and yet he thinks that this will have a big impact on the stock market. Housing prices have already fallen by ~10% in this recent double-dip and yet the stock market has roared ahead (much to my amazement, I might add). So, while I agree that a 5%-10% further decline in housing prices may well be in the cards… I’m not sure that it follows that the stock market will follow downward… although it would be nice to think so.

[davelj]

[quote=outtamojo][quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467%5B/quote%5D

What I find interesting is that he’s only expecting another 5%-10% decline in housing and yet he thinks that this will have a big impact on the stock market. Housing prices have already fallen by ~10% in this recent double-dip and yet the stock market has roared ahead (much to my amazement, I might add). So, while I agree that a 5%-10% further decline in housing prices may well be in the cards… I’m not sure that it follows that the stock market will follow downward… although it would be nice to think so.

[davelj]

[quote=outtamojo][quote=FormerSanDiegan]Right now, late Spring 2011 could be among the best times to buy (in many parts of San Diego) considering the combination of price, interest rates, and rental trends for something to hold long-term. The potential downside risk is conderably less than any other time in the past 15 years, in my opinion.[/quote]

While I am generally in agreement, it is somewhat disquieting for me to hear that Doug Kass has turned bearish http://www.cnbc.com/id/42978467%5B/quote%5D

What I find interesting is that he’s only expecting another 5%-10% decline in housing and yet he thinks that this will have a big impact on the stock market. Housing prices have already fallen by ~10% in this recent double-dip and yet the stock market has roared ahead (much to my amazement, I might add). So, while I agree that a 5%-10% further decline in housing prices may well be in the cards… I’m not sure that it follows that the stock market will follow downward… although it would be nice to think so.

[bearishgurl]

[quote=utcsox]http://www.nytimes.com/2011/05/11/business/11housing.html?pagewanted=1&hp

What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?[/quote]

…Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”…

I agree with this. A FNMA/FDMC conforming limit should NOT be routinely funding luxury properties. That is not its purpose. Perfectly decent houses for families and everyone else are available in SD County for far less than $546,250. Besides, a maximum conforming loan amount of $546,250 will facilitate a purchase of $682,812 with the standard 20% downpayment. This is more than adequate to fund a mainstream purchase of a moderate to mid-upper-tier property in a very nice area.

[bearishgurl]

[quote=utcsox]http://www.nytimes.com/2011/05/11/business/11housing.html?pagewanted=1&hp

What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?[/quote]

…Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”…

I agree with this. A FNMA/FDMC conforming limit should NOT be routinely funding luxury properties. That is not its purpose. Perfectly decent houses for families and everyone else are available in SD County for far less than $546,250. Besides, a maximum conforming loan amount of $546,250 will facilitate a purchase of $682,812 with the standard 20% downpayment. This is more than adequate to fund a mainstream purchase of a moderate to mid-upper-tier property in a very nice area.

[bearishgurl]

[quote=utcsox]http://www.nytimes.com/2011/05/11/business/11housing.html?pagewanted=1&hp

What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?[/quote]

…Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”…

I agree with this. A FNMA/FDMC conforming limit should NOT be routinely funding luxury properties. That is not its purpose. Perfectly decent houses for families and everyone else are available in SD County for far less than $546,250. Besides, a maximum conforming loan amount of $546,250 will facilitate a purchase of $682,812 with the standard 20% downpayment. This is more than adequate to fund a mainstream purchase of a moderate to mid-upper-tier property in a very nice area.

[bearishgurl]

[quote=utcsox]http://www.nytimes.com/2011/05/11/business/11housing.html?pagewanted=1&hp

What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?[/quote]

…Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”…

I agree with this. A FNMA/FDMC conforming limit should NOT be routinely funding luxury properties. That is not its purpose. Perfectly decent houses for families and everyone else are available in SD County for far less than $546,250. Besides, a maximum conforming loan amount of $546,250 will facilitate a purchase of $682,812 with the standard 20% downpayment. This is more than adequate to fund a mainstream purchase of a moderate to mid-upper-tier property in a very nice area.

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