Congress just passed, and the President signed, legislation that extended the loan limits for Fannie, Freddie, and FHA. Conforming loan limits will remain at $729,750 through September 30, 2011.
I’ll be holding 421 26th Street in Manhattan Beach open this Sunday, October 10th from 2 -5 pm. This single family has 3 bedrooms and 2.5 baths. It’s just blocks to the beach.
When people ask me how the market is doing, I can honestly answer that it’s not bad. Let me clarify, markets are local. There are definitely some bad markets out there. But if I’m speaking specifically about my local markets, i.e. Hermosa Beach, Manhattan Beach, Redondo Beach, and other South Bay cities, the market really isn’t that bad. There are plenty of buyers out there. There have been multiple offers on some properties. Qualified buyers do get financing. Interest rates are phenomenally low. But one of the biggest differences I do see is a buyer’s attitude toward real estate. What I mean by that is when the real estate market was exploding and everyone was rushing to get into the game, buyers were somewhat careless about what they bought. They overlooked negative features. If the house was located on a busy intersection, they thought that the noise wasn’t that bad (once the TV was on, the windows were shut and they spoke really loud). If the 4th bedroom was more reminiscent of a modest walk-in closet, they called it an office and threw their old sleeper sofa in there. If the home inspection report provided a laundry list of problems, buyers refrained from asking the seller to do any repairs for fear that they would lose out on another property to another buyer who was a lot less concerned about dry rot, electrical problems, plumbing issues or any other number of red flags. But today, in this current market, buyers have changed their tune. Their threshold for problems or quirks is much lower. They won’t settle for a house just for the sake of becoming a homeowner. They will look and they will move on if they don’t feel the house will properly meet their needs. It’s definitely a buyer’s market and the buyers can afford to be selective.