Six in Ten
This past weekend, I sold four homes. As in between Friday and Sunday, I sold four separate homes. Since Black Friday, that would put me at six sales in the span of 10 days. To put that in perspective, the community sales goal for the entire month of November between two agents was six sales. Did that in 10 days with just me.
This market remains insane of course, but there is a new variable that will be helping during the following months: The max limit for FHA loans has increased. In my area, it was previously around $356,000, but starting next year on January 1st, it will go up to around $420,000. It will vary based on the location. Some areas are a good amount higher since they are high cost of living areas. This is pretty huge considering that an FHA loan is one of the easier loans to get and only requires that you put 3.5% down.
Here is where you can go to see the FHA loan limits for your area.
This means that people who were previously priced out due to the house pricing of their area exceeding the loan max may get a shot to be back in the market which is great. Two of my six sales were possible entirely because of the increase in loan limits. That also means that the market is about to become even busier than it already was. 😬
***Deep breaths***
Okay. Let’s get to it.
How would an FHA loan limit increase affect your area?
Feature Photo by Marivi Pazos on Unsplash
P.S.- That also means I am going to be shifting back to writing only on Tuesdays by the end of the year. My time has already been taxed, but it is about to become rather limited.
I do wonder how much that comes into play here, those limits look way too low to get someone in a SFH in this region. The market here has been so hot for so long, I keep wondering when it’ll drop. It’s got to eventually…!
I am just hoping for a slowdown at this point. People are burning out left and right in this industry. Pricing in my area seems to be more under control. My homes have gone up over $75,000 this year. Over $50,000 was within 60 days. In the past 2-3 months, we’ve only gone up $3000. I am hoping that means things are getting a little more under control.
What a run! Nice to have a hot streak before the holidays of all times. Hopefully the momentum continues!
Thanks! We’ll see where we end by the end of the month. January-May is always crazy here so curious if it’ll start with a blow this month.
Thanks for reading!
I do wonder if “limits” like this act as an arbitrary anchoring point for sales prices to “magically” float up to. For example, when the “median sales price is $275k” it seems like all listing go to that price or higher, even though roughly half should go for less than that amount.
Hmmm…Not Sure. Hasn’t been that way in the past, but these are “unprecedented times” now. If we continue the way we are now in our area, we should be okay. Any homes under 300K I see going up for sure though.
Thanks for reading!