It appears that maximun loan limits for conforming mortgages will soon be raised from $417,000 to $625,00. According to real estate professionals a much needed increase for the coastal real estate market and San Diego in general which as a median price hovering at $500000.

While much needed to make financing more affordable throughout the region, the changes will not be enough to stop the decline in real estate sale and prices until inventory levels reach a healthy level from the current glut. The changes will help by allowing more buyers ito the market place to absorb the current inventory. According to a National Association of Realtors survey the number of new households being formed is off by about 50% in the last 6 mos indicating growing pent up demand and buyers waiting on the sidelines. I predict that if the economy doesn’t totally tank the new higher loan limits, pent up demand, and continued low mortgage rates will bring the buyers back into the market. And it will be a buyers market for quite some time.