Last week, the Congress announced legislation. Among the many things, it was mentioned that the lending cap for government agencies, Freddie Mac and Fannie Mae, would be raised from 417k to 729k. This is great news!
With this change, more loans in the higher reaches will be backed by government entities. This will make the lending process easier for jumbo loans. Hopefully, with interest rates dropping, this should also allow more buyers to buy. Hence, this should bring a bottom to the free fall of Phoenix property prices.
So my advice, BUY A HOUSE NOW! Interest rates are low, sellers are primed and ready to sell, offering even incentives, and there are a myriad of homes on the market. If you have good credit and are thinking about buying, now is the time! Don't wait until everyone says that the market is better! It will be too late to get that house deal you always wanted.
If you are thinking about selling. Wait just a little longer. By the end of 2008-mid 2009, it will be a much better time to sell. House prices should be stable and rising by then.
With that said, HAPPY HOUSE HUNTING!
