Will the economic $152 billion stimulus bill affect Real Estate in South Lake Tahoe?
President Bush signed the bill last week in an effort to stimulate the economy and the National real estate market. This bill includes a temporary increase in loan limits for Fannie Mae, Freddie Mac, and FHA until December 31, 2008.
According to NAR president “The loan limit increase should help 138,000 Americans purchase homes and could help 200,000 home owners refinance, and potentially keep there homes.
The FHA loan limit will increase in “High cost areas” and will increase up to 125% of the local median home price, or up to $729,750. The temporary loan limits should be published by March 14th.
This loan increase may help the South Lake Tahoe Real Estate market a little, but I do not think that it will turn it around. There is a large inventory of new homes in South Lake Tahoe that have been on the market for a long time. The loan limits should increase enough for some buyers to be able to afford one these new homes. Sellers with resale homes priced over $500,000 should also benefit from the increased loan limits.
Sellers beware! Even though I feel the loan limit increase will help some buyers in the South Lake Tahoe Real Estate market, sellers need to be realistic. Pricing your home right in the current market conditions is, and still will be crucial!