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November 28th, 2007 1:55 PM by David W. Welch
Don't get me wrong, home prices are coming down. They have been coming down for some time now, but a drop of 5% is more in line with a correction than a total collapse. If you read the article out today, you will see that sales (and prices) have remained flat in the Northeast and South. The West is really seeing pressure, because the median price in California is North of $417,000. Why is $417,000 a magic number? Loans over that amount are called Jumbo mortgages, and they nearly dried up with the credit crunch. Many investors considered them too risky to invest in them. That has made it both more difficult and more expensive (to buyers) to obtaining financing in the end of the market.
For everyone else the impact has been less significant. Even here in Florida there have been markets in the southern part of the state, especially coastal areas, where prices are in jumbo territory. Here in Orlando the median is a comfortable $235,000. That is a bit higher than the state and national averages, but still affordable for a lot of home buyers. Find your dream home at www.davidwelch.com