Trend Chart of the Day: FHA Loan Limit Changes & Home Prices
Lots of yawns and snoozes as expected (see: CNBC Recap & Analysis: Tax Assessment, Morgtage Refis, Valuations, Conforming Loan Limits).
The upper end price tiers have been adjusting their ask prices since the early Spring in anticipation of the FHA Loan Limit changes that took place on October 1:
Chart illustrates the percentage of active listings, by price quartile, with price reductions since Jan 2011. Moving up the price tiers shows an increasing percentage of sellers taking price reductions relative to previous levels. Reductions even flattened out by August 2011, indicating sellers preceded the loan limit changes prior to the deadline.
Nothing to see here. Move along…