President Bush has signed the Housing Rescue Bill  after the House and Senate passed it.  As noted in prior blogs, the major benefit to the San Clemente real estate market is the following:

• Permanent increase of conforming loan limits from $417,000 to $625,000 making San Clemente home and condo prices within these ranges avoid jumbo financing that costs 1-1.5% higher. 
• A potential reduction in inventory levels as the first time homebuyer credit and assistance to troubled borrowers should help to bring supply back to historical levels, which in turn will help prices stabilize.   
• The recapitalization of Fannie Mae and Freddie Mac should help to make credit more available to those who can afford to buy and can qualify

The only downfall of the Bill from a housing recovery perspective is the seller down payment assistance being eliminated as this may result in some buyers unable to come up with the needed cash.  This may specifically be true in new developments, such as in Talega, as homebuilders like Standard Pacific have been offering down payment assistance in select communities.

For more information about this Bill, please click on the link above, read the related blogs below, or contact us today.   

This entry was posted on Wednesday, July 30th, 2008 at 4:06 pm and is filed under Buyer & Seller Tips, Market News & Analysis, Real Estate, Top 10. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.