Home Selling in Roslyn>Question Details

Steve,  in Great Neck, NY

Do you think prices of homes that require jumbo mortgage financing (>625000 loan ) will be higher or lower in?

Asked by Steve, Great Neck, NY Thu Feb 26, 2009

12 months

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The National Association of Home Builders released its own study claiming that lowering the loan limits at Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA), "will reduce housing demand and place downward pressure on home prices in major housing markets."

http://www.thestreet.com/story/11166850/1/lower-loan-limits-…
0 votes Thank Flag Link Thu Jun 30, 2011
Prices will absolutely go down. People buy what they can afford. When the limit is reduced for jumbo loans, rates on those loans will go up, so the same people will be able to afford less. If people can afford less, they pay less which means downward pressure on housing prices, particularly in high cost areas like NYC, SF, LA, etc.
0 votes Thank Flag Link Thu Jun 30, 2011
Hi Steve, As we all know real estate is very local and the answer to this question will depend greatly on the area you are looking in. Some areas retain their value better then others and haven't been affected by the latest housing slump as others. Some will be able to give a statistical/trend analysis but nobody can say for sure what will happen. i see you are a builder, if you are planning to build and sell I recommend looking at the data for the area you choose. Look at what homes like yours have sold for in the past two years and how long they took to sell. This data can give you an idea of what you will be in store for.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Tue Apr 12, 2011
Wish I had a crystal ball and then I could answer accuretely. However my best advice, since none of us knows what tomorrow brings--if you see something you like, are able to afford, have spoken to a mortgage specialist and your Cpa no reason not to buy now. Remember don't overspend if not in a position to do so, you don't want to be married to your bills.
0 votes Thank Flag Link Thu Feb 26, 2009
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