As you may have heard, Congress is working on a economic stimulus package…
The version that passed in the House includes very exciting provisions for California home buyers and home sellers.
It would raise the conforming loan limits in high-cost areas of the country to to 125 percent of the median home price in high-cost areas.
In San Francisco, we are likely to see an increase in conforming loan amounts to $600,000 to $700,000! I’ve heard $625,000 thrown around.
Conforming loans have lower interest rates which means more San Franciscans will be able to afford to become homeowners.
Of course, if this happens, we are likely to see a spike in activity which could drive up prices.
Right now, the end result is unclear and not a guarantee at all. The Senate must vote on the entire bill and they may remove/amend/change this provision.
We just don’t know yet…but we are paying attention and will keep you updated!
Personally, I would not recommend waiting b/c 1. it may never happen and 2. it may increase offers and thus sales prices.
Rates are really good right now as they are and values abound in the TIC, loft, and condo market.
Check out the full story here: Inman Real Estate News – UPDATED: Senate committee OKs amendments to stimulus package.