FHA Loan Limits Looking to Decrease

HUD is planning another shift in loan limits for FHA loans coming this October.  Currently they are set at $295,000 for  our Marion & Polk Counties within the Mid Willamette Valley in Oregon.  Currently FHA requires a down payment of 3.5% of the sales price leaving a potential sales price to be no more than $280,880.00 come this October.  Hopefully this will not have a huge affect on our home sales in this area.  Many of the FHA buyers in this market are purchasing homes below $200,000.  However, you will see that many move up buyers want to take advantage of the FHA backed mortgages with the minimal 3.5% down payment leaving some sellers with homes priced around the $280,000 price range and above in an ever more difficult position to find a qualified buyer.

Like most markets around the country, ours is also flooded with homes priced above $280,000 and it is a difficult task to find a buyer able to put down 20% during these economic times.  Sellers need to look ahead so they are able to position themselves correctly for the coming changes.

Home Buyers Continue to have their cake and eat it too! But they’re not enjoying it!

Home Buyers continue to have so many options in Real Estate, it is just down right sickening.  Sickening to the point that they are so overwhelmed with options that it is not an exciting process for most home buyers.  Simply put, they are faced with a an array of homes available to purchase.  However; these homeowners that they are negotiating with are down right ticked off!  They’re upset that they are selling in the worst Real Estate market in the past 30 years.   Many of these home sellers bought their home in the past 6 years when values were increasing; although hyper-inflated as they were, they are now having to sell.  Sellers are fighting for every dollar and that just doesn’t jive with home buyers expecting this to be the greatest Buyers Market in recent history.  Home Buyers have become what I am labeling “Entitlement Buyers”.  These home buyers feel entitled to negotiate whatever they want, and get upset when they don’t get what they want.  Many of these home buyers are realizing that in our declining market, the home they are purchasing could potentially be worth much less in a few months.

I can’t say that I blame the buyers’ attitudes that has been established over the past 4 years.  Anyone purchasing a home wants to get the best deal in any market.  This market has just emphasized the need to feel that a good deal has been established.  Buyers want to feel that they won.  It is interesting to see buyers pursue an undervalued home listed in this market.  Even if the home is priced 20% below market value and buyers can be competing with other buyers, but none of them are willing to offer asking price.  They just don’t want to pay full price because they won’t feel that they won.  It is unfortunate because we have seen many buyers miss out on some great homes priced below market value.  It is encouraged to take the “feel” out of the home buying process.  Making an intelligent decision usually doesn’t involve emotions.  Emotions often fail you.  It is this position that often rubs home buyers the wrong way.  Home buyers are usually emotional buyers, and unfortunately these emotions will make a great experience taste bitter if they are not put into perspective.