Mortgages - Conforming Loan Limits and Jumbo Loans

In this video Andrew L. Parker with RE/MAX Metro Realty and Craig Walker with Cascade Mortgage discuss loan limits, jumbo loans and renting versus owning.

The type of loan one gets depends on the amount of the loan. In Seattle, Washington, a loan would be considered “Conforming” if the value is less than $417,000. It would be considered a “Conforming Jumbo” if it is valued between $417,000 and $506,000. While it would be considered a “Jumbo” if it is valued above $506,000.

With home interest rates and home values down, more buyers are entering the market. In King County is has become more affordable to pay the monthly mortgage payment for the average home than it is to rent the average home.

King County Residentual Home Values

The median home value has remained relatively flat from May to July at $350,000, while the average was $444,827. When comparing July of 2010 to 2011, the median is down 12%.

The number of homes sold in July was 1678, while the number of homes that are pending was 2,297.

King County Home Sales

Since the beginning of 2009 more homes sold in June of 2011 than any other month in King County! The number rose to 1,884, while the number of homes that are pending fell to 2,389.

The median home value plateaued from May to June at $345,000. The average jumped up to $449,715. When comparing June of 2010 to 2011, the median is down 10.0%.

Statistics provided by the NWMLS. Information deemed reliable but cannot be guaranteed.

King County Home Values

King County's median home value slid down by approximately $5,000 in May to $345,000. The average moved down as well by approximately $17,000 to $420,145. When comparing may of 2010 to 2011 the median is down 9.0% and the average is down 8.4%.

The number of homes that sold rose to 1,654, and the number of homes that went pending rose to 2,485 in May. These numbers should continue to rise in June.

King County Home Values

King County home values continue to rise from the low in February of this year. In April the median home value was $349,950 and the average was $437,178, which is an increase of 4.7% and 5.6% from February. However, it is a decrease of 6.7% and 1.5% from April of 2010.

The number of homes that sold plateaued at 1,533, and the number of homes that went pending decreased slightly to 2,318 in April.

Typically May and June are the months that the largest amounts of homes sell. So it is likely that the volume of home sales will continue to rise.

February of 2011 was a new low for home values. Experts say one factor that may have caused this is consumer confidence, which was pushed down by rising oil prices, unrest in the Middle East, the major earth quake in Japan, and the growing inventory of Bank Owned and Short Sale homes.

If you’d like to know more about our local home values and what they means to you, contact me and let’s talk 206-930-8238.

King County Home Values

The median and average home values for King County Washington rose slightly in March with a median of $345,000 and an average of $420,118. February may be the low point for 2011. The number of pending sales is skyrocketing and closed home sales are moving up with 2,435 homes pending and 1,525 homes closed. Buyers appear to moving into the market to take advantage of low prices and spring weather.

Conforming Loan Limits

I've just received word that the new temporary conforming loan limits for King, Snohomish and Pierce Counties have been announced. The new limit will be set at $506,000 for loans purchased between January 1, 2009 and December 31, 2009. This replaces the 2008 temporary loan limit of $567,500.