Loan Limit is Up!
There’s been a major announcement, and it’s going to impact the real estate industry, nobody’s talking about it!?
In our meeting today on January 3rd, 2022 our lender announced to us that they raised the conforming loan limits to $647,000, and in some areas up to $970,000 This is going to have a major impact on the real estate market, because where loan limits go demand goes. See, when COVID hit people thought that the market heated up because of low inventory, because of scarcity, but really it heated up because there was access to money because as long as people can get their hands on money they’re going to take out these loans. You know it’s true, we’re Americans, we love loans, we’ll get loans.
So, normally the real estate market doesn’t start heating up until March or April, but with these changes and the increase to the loan limits people are going to have more money than ever and these buyers are going to get access to this money. People that are selling their homes in places like Seattle, Bellevue, Redmond, California, Oregon, that are moving to our area in North Central Washington and Eastern Washington, and now that buyers have access to higher loan limits the chances of them selling their home for big money is high. They’re going to take this money and they’re going to bring it over here, so we’re going to see a major increase in demand in 2022 that I wasn’t necessarily expecting, but with these higher loan limits, it’s probably going to have a major impact.
Now, not all counties are the same, so Chelan County, Douglas County, Okanogan County, Grant County, Kittitas County, they’re different. If you’re interested in knowing what the loan limit is in your area and how that’s going to affect your home price, or you might be a buyer and you’re interested in finding out what the loan limits are for you and what the monthly payment would look like, reach out to us and we’ll let you know.
In general terms, it’s $647,000 for a conforming loan in our area, which means that’s good news for homeowners and it’s good news for homebuyers that want access to more capital.
Nick McLean Real Estate