Coastal Real Estate and Lifestyles

The multi-billion-dollar Economic Stimulous package, Bill HR 5140, that we’ve been hearing about was signed yesterday.  Home loans previously offered through Fannie Mae and Freddie Mac (conforming loans) and Federal Housing Administration (FHA) loans will have an increased secure limit for a short period of time.  The limit will increase to up to 125% of the median home price in a given county or metropolitan statistical area.  I don’t know yet if the limit will be based on annual, quarterly or monthly data, but here are Half Moon Bay’s median prices.  (Annual 2007 - $957K; Q4 2007 - $915K; Month Jan. 2008 - $1,250K.  The temporary limits are set to expire on December 31, 2008.

If you are a San Mateo County Coastal area Buyer or Seller:

Buyers:

• Start getting your financial house in order** and talk with a mortgage professional.  It’s your turn, but don’t expect any bargains in the Half Moon Bay area.

• After you talk with a mortgage professional you can look at properties with a new “eye” toward what you can afford under the new guidelines and loan limits.

• There is more available inventory now than a year ago (up 28% currently) so there are choices; however, some properties buck the trend and sell very quickly; some still never make it to the MLS.  It’s very neighborhood/location specific.  Pacifica has lots of great inventory to choose from right now if you’re considering neighborhoods there.

Sellers:

• If already in a listing contract, discuss these changes with your Realtor(r) and how they will affect your situation.

• If thinking of selling, contact 2-3 agents to discuss your needs and get brought up to date.

• We’re still in a Buyer’s Market and with lots of changes in the works; get yourself positioned to achieve your goals by staying aware of market shifts and taking your Realtor’s(r) advice.  These market shifts happen before they become headline news.

More detail about how this announcement may affect buyers and sellers in the San Francisco Bay Area in my Hot Topic.

**
Do you know your credit score?  700 is the new 680 per my mortgage contacts.
If you’re thinking about purchasing a large item with a credit card, it may be prudent to wait.
Have you looked at your credit report in the last 12 months to see if there are errors?

A little greeting…

Roses are Red
Our Ocean is Blue
Happy Valentine’s Day
From Me to You