{"id":17178,"date":"2011-09-23T11:40:46","date_gmt":"2011-09-23T18:40:46","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=17178"},"modified":"2011-09-23T11:40:46","modified_gmt":"2011-09-23T18:40:46","slug":"how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/","title":{"rendered":"How Much of the Seattle-Area Market Will be Affected by New Conforming Loan Limits?"},"content":{"rendered":"<p>There&#8217;s been <a href=\"http:\/\/raincityguide.com\/2011\/05\/13\/high-balance-conforming-and-fha-loan-limits-to-be-reduced-after-summer\/\">a bit of talk in some circles<\/a> about how new, lower &#8220;high balance conforming loan limits&#8221; that go into effect on October 1st going to somehow dramatically affect the local housing market (presumably in a bad way).<\/p>\n<p>In order to get a sense of scope on how many sales might be affected by this new change, I did a few quick searches on Redfin.<\/p>\n<p>Under the current limit of $567,500, a buyer with 20% down could buy a home priced up to $709,375.  Under the new limit of $506,000, the 20%-down buyer can now only go up to $632,000.  According to Redfin, <strong>4.1% of homes on the market<\/strong> (SFH, condo, &#038; townhouse) in King County right now fall between those prices (426 out of 10,490 listings).  <strong>4.5% of sales<\/strong> in the last six months have fallen in that range (601 out of 13,350 sales).<\/p>\n<p>If we assume the worst-case scenario of just 3.5% down under the existing limit a buyer could purchase a home of up to $588,083, while under the new limit that drops to $524,352.  <strong>4.8% of current listings<\/strong> fall between those ranges (502 out of 10,490), and <strong>5.4% of sales<\/strong> (724 out of 13,350).<\/p>\n<p>If you take the broadest possible range of $524,352 at the low end under the new limits, down from $709,375 at the high end under the existing limits, you&#8217;re talking about 11.7% of listings (1,228 out of 10,490) and 12.9% of sales (1,725 out of 13,350).<\/p>\n<p>So the new conforming loan limits will affect between 4% and 13% of the Seattle-area market.  Doesn&#8217;t seem like such a massive disruption to me&#8230;<\/p>\n<p><span style=\"font-size:85%; font-style:italic;\">Full disclosure: The Tim is <a href=\"http:\/\/seattlebubble.com\/blog\/2010\/07\/14\/some-noteworthy-personal-news\/\" title=\"Some Noteworthy Personal News...\">employed by Redfin<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s been a bit of talk in some circles about how new, lower &#8220;high balance conforming loan limits&#8221; that go into effect on October 1st going to somehow dramatically affect the local housing market (presumably in a bad way). In order to get a sense of scope on how many sales might be affected by&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[612,613,198],"tags":[305,810,81],"coauthors":[],"class_list":["post-17178","post","type-post","status-publish","format-standard","hentry","category-local","category-national-news","category-news","tag-banks","tag-conforming-limits","tag-mortgages"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much of the Seattle-Area Market Will be Affected by New Conforming Loan Limits? \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"How Much of the Seattle-Area Market Will be Affected by New Conforming Loan Limits? \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"There&#8217;s been a bit of talk in some circles about how new, lower &#8220;high balance conforming loan limits&#8221; that go into effect on October 1st going to somehow dramatically affect the local housing market (presumably in a bad way). In order to get a sense of scope on how many sales might be affected by...\" \/>\n<meta name=\"twitter:creator\" content=\"@The_Tim\" \/>\n<meta name=\"twitter:site\" content=\"@SeattleBubble\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The Tim\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/\",\"url\":\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/\",\"name\":\"How Much of the Seattle-Area Market Will be Affected by New Conforming Loan Limits? \u2022 Seattle Bubble\",\"isPartOf\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/#website\"},\"datePublished\":\"2011-09-23T18:40:46+00:00\",\"author\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/7de7c0dd14bee1a2c67f7ce86bc4505f\"},\"breadcrumb\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/2011\/09\/23\/how-much-of-the-seattle-area-market-will-be-affected-by-new-conforming-loan-limits\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/seattlebubble.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Much of the Seattle-Area Market Will be Affected by New Conforming Loan Limits?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#website\",\"url\":\"https:\/\/seattlebubble.com\/blog\/\",\"name\":\"Seattle Bubble\",\"description\":\"local\u00a0real\u00a0estate\u00a0news, statistics,\u00a0and\u00a0commentary without\u00a0the\u00a0sales\u00a0spin.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/seattlebubble.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/7de7c0dd14bee1a2c67f7ce86bc4505f\",\"name\":\"The Tim\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/image\/37756956c11dcc50d2559761ffa5ee70\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/19e5770990a1681615608091b2de571b10c3e03bbac7d07bb2ae15297ee72fbc?s=96&d=retro&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/19e5770990a1681615608091b2de571b10c3e03bbac7d07bb2ae15297ee72fbc?s=96&d=retro&r=g\",\"caption\":\"The Tim\"},\"description\":\"Tim Ellis is the founder of Seattle Bubble. 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