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Day 324: The Sunday Snapshot, Bethesda Real Estate

Bethesda in Fall Bloom

It’s Sunday, November 20th and despite the upcoming Thanksgiving holiday, the Bethesda-Chevy Chase real estate market is still open for business.  There are 47 detached homes scheduled to be open today and 13 condos or attached units.  To find the details and properties of interest to you, we suggest a visit to www.HomesDatabase.com.

REAL ESTATE NEWSFLASH:  There were some important changes to our real estate market this past Friday when President Obama signed into law a bill reinstating higher limits for FHA loans in higher-cost markets such as our Metro DC area.  The ruling partially repeals the decreased limits that came into effect on October 1st of this year which lowered the conforming loan limits from $729,750 to $625,500 – a change which essentially knocked some purchasers right out of the market and severely increased the costs of homeownership to others.  The lower limits required buyers to put more money down and/or reduce the price of the home they would buy in order to afford the costs of the loan.

With the average home in the Bethesda-Chevy Chase area hovering near $900,000, the pickin’s are slim when a buyer only has $625,500 of mortgage money available for financing.  This new law, effective on Friday, re-instated the $729,750 limit and re-opened the higher priced market again to purchasers using FHA mortgages, allowing them to put as little as 3.5% down and finance up to the new loan limit.

www.KeystoBethesda.com

While the re-instated FHA loan limit is terrific news for our area, the ruling did not apply to Fannie-Mae or Freddie-Mac insured loans, leaving those who would prefer conventional financing versus FHA still facing higher costs of financing since anything above the $625,500 mortgage loan limit (as of October 1st) still requires the purchaser to obtain a Jumbo Loan.  Jumbos go hand-in-hand with higher fees and higher interest rates.

As our economy still struggles with its rehabilitation after the Great Recession, I think we can all agree that the health of our real estate market nation-wide is a critical piece of our economic recovery and that homeownership is not only still a great American Dream, but it’s still a great long-term investment too.

~Amy

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