We had a big discussion about this in our office meeting. We have a lot of buyers this will affect.

Sat Feb 9 2008, 17:38

Discussions/Topics/Debates, whether one agrees or disagrees, are what our founding father's had in mind when Americans became Americans, and not a puppet state of Britian. It was/is a great question and I obviously added my 2 cents worth. I will stand by my assertion that the less the Government interfere's in the free workings of a properly functioning economy, the better off we will all be.

Sat Feb 9 2008, 17:30

Great answer Graham, and although we can agree to disagree. The last point made is probably the most accurate. Any buyer should educate themselves and form an opinion based upon many resources.

Bringing this question to this board was and is not to put a positive spin on a still hurting market. This was only an attempt to spark some conversation about a very important bill that involves our industry. We all might not agree on why it is going to be passed, or what will be the outcome, yet we can agree of its importance to our overall market.

I can sit here and complain all i want about rents not being at levels that would enable a smoother transition to home ownership, or wages not being in sync for our markets. We can voice these opinions as much as we like, but with as much dislike we have for the system. The only way to change it is to not be a part of what you complain about.

If you get a call from a customer that will benefit from this new program limits, will you tell them sorry for my beliefs about why i think this is not beneficial to our tax payers i cannot represent you. If you do than you live by your beliefs for more than the average person, For most of us we are doing our job as professional to help our clients obtain home ownership. If this new program helps one more family obtain that, or helps one seller who cant afford there house get out of there home without having to short sale or foreclose then i feel that is a positive.

I'm not addressing the reasons why this is or is not the right thing for the government to do, but it is happening. As fellow professionals my question remains will this impact any of your clients or prospects?

Sat Feb 9 2008, 11:43

GSE's(TAX PAYER's) are already on the hook for many billions of dollar's due to faulty loan/ finanacing/investment vehicals, especially in California where the median price of homes (Bay Area in particular) is way out of reach for the average consumer. By raising the Conforming Loan limits in these high priced areas,in my opinion only helps to prevent these over priced markets from reaching more realistic levels based on RENTS and INCOMES. Raising GSE limits also puts the TAX PAYER on the hook for the possibility of larger defaults in the event of continuing housing declines. Putting an artificial floor under home prices for the most part benifits only those with incomes that can afford milliion dollar homes in the first place. Those that can afford high priced homes do not need the help of the average TAX PAYER (Rate Subsidies) to purchase. How does this help the majority of families who would like to own, but are priced out of the market due to the abilities of a few to pay over inflated prices (over inflated based on National averages in relation to Prices/Incomes and Rent Qualifiers. I firmly believe that the more families that can afford a home, the better off the Nation will be.
The area of Tennessee (Nashville/Franklin/Brentwood) that I personally am familiar with has one of the highest Per Capita Income levels in the country, and the cost of housing is in the upper percentile based on National averages. Jumbo Loans are very common. I am also very familiar with Bay Area Real Estate having had, and still have, my CA Broker's license for over 20 years, Buying and selling mostly on my own behalf in that area, up to a couple of years ago, gives me I believe a pretty good grasp of realities in that state (BAY AREA in particular) These are just my opinions and in no way are they meant to disparage other opinions.
Is this a GOOD time to BUY...only if YOU are an EDUCATED consumer and don't rely too heavily on any one particular person or group to form your opinion for you. Draw your own conclusions with the help of MANY resources, understand the consequences, and take responsibility for those decisions whichever way you choose. Just my 2 cents worth.

Sat Feb 9 2008, 07:10

Good point Graham,

I don't know if there's a Real Estate Industrial complex sneaking around ..

But we do know there's a large amount of private investors that have just decimated some of the housing markets - look at Vegas or Stockton just for starters ... you would think folks had learned something from the slaughter of the "Inland Empire" in the early 80's ...

Actually raising the loan limits is "all about" prices and sales .. it won't help the market, it will just increase the failure rate. ... if they want to help the markets start with the basics .. revamp and restructure the credit reporting system - how do you think most of this has happened.?

.... Misery is the price of gluttony .....

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Sat Feb 9 2008, 04:55

The loan limits are not about prices or sales. They are about people in high income areas that cant afford these homes being able to now qualify based on there true median Market value. In TN it may not even concern you in alot of cases, as i am sure most loans being originated in TN fit into the current loan guidelines. Im generalizing yes as i have no idea what your market entails.

The fact remains for me being in the bay area, families will now be able to qualify based on conforming rates and programs backed by freddie mac and fannie mae. This alone is worth more to my clients than price predicting or speculation. I can try my hardest to predict prices for clients, but with so many variables all i can do is deal with todays current prices and bank guidelines.

Fri Feb 8 2008, 14:39

It is my humble opinion that prices need to drop further to allow the majority of Americans to purchase rather than be priced out of the market. All the talk of raising the FHA and other GSE limits, will just put an artificial floor on prices, rather than letting them fall to where rents/incomes and prices are more in line with the National average, and history. The more people that can affored a home, the better off everybody will be, including the Real Estate Industrial complex. Just my 2 cents worth.

Fri Feb 8 2008, 14:07

I just cant see why as a forum there is not much discussion about key issues like this. But thanks for the reply Chris. I know many many custiomers that will be taking advantage of this refinancing, selling, and buying.

Fri Feb 8 2008, 12:45