Aloha SB Buyer,
I'm not a loan officer, but given the steep drop in prices, I would think it wouldn't have any affect.
In the first quarter of 2011, the median price was $450,000. With the change in the loan limit, that still gives a buyer more than an additional 35% to work with. It doesn't look like the market has hit bottom yet, so I don't think it will affect condos at all. If it has any effect, it will be for a limited number of sales in Kula, Wailea, Kapalua and Kaanapali.